Obtaining a Certificate of Occupancy (CO) is a crucial, and often last, part of being able to legally occupy or use a property. It denotes that the property meets all the required zoning, safety, and building codes. But what happens if you are ready to move in or start your business, and your CO application gets denied? This is devastating.
If you are a homeowner, landlord, or business owner, it is crucial that you understand why your Certificate of Occupancy might be denied to save time, money, and major frustration. With this in mind, continue reading below as we will go through three common reasons why your CO may not be approved and how to avoid them.
What is a Certificate of Occupancy?
A Certificate of Occupancy, also known as a CO, is an official document provided by a governing jurisdiction that indicates that a building is safe and ready for its intended use. It states, “This property has cleared all the required tests and inspections – you can move in or open your commerce.” Whether you are building a new home, opening a new business, or major renovations, your properties must pass certifications in order to get a certificate of occupancy.
The certificate indicates that the structure has been checked for compliance with zoning regulations and building codes, and safety measures around fire safety, and the availability of utilities. Inspectors checking for the certification will see whether all aspects are coded and verified, from the electrical systems to the plumbing systems, and from fire safety measures to the number of exit points. Not having a certificate of occupancy can leave you with fines, delays, or closure of your work.
A Certificate of Occupancy at the end of the day gives you peace of mind for you and subsequent buyers that the premises are safe and up to code. If you’re planning a major project, understanding when and how to get a CO can save you a headache in the end.
3 Reasons a Certificate of Occupancy Might Be Denied
1. Failure to Meet Safety Standards
Safety is one of the primary reasons a Certificate of Occupancy may be denied. A building must comply with safety regulations that local authorities establish, including the safety of the building for its proposed use. Inspectors check for safe electrical wiring, secure handrails, properly functioning smoke alarms or detectors, and safe points of egress for fire protection. It is possible that your CO application can be stopped immediately if something is not according to the code, or worse, represents an obvious danger.
These standards help ensure the safety of future tenants and occupants living, working, or traveling in the building. It’s essential to define a tenant and an occupant to avoid confusion in your lease agreement. You might think missing hand railings or exposing wiring and junction boxes is not a big deal, however, they could create big issues at the time of inspection. On a positive note, many safety things can be avoided with adequate planning and attention to detail in the earlier stages of construction and renovation. Catching these issues before serious delays and unexpected costs can save you time and money.
2. Incomplete Documentation
Incomplete paperwork can also be a reason your Certificate of Occupancy could get denied! It may sound simple, but it’s a serious issue, as just a few omitted documents can lead to a lot of waiting and frustration. Construction departments require complete documentation of architectural plans, permits, inspection reports, and sometimes utility approvals to issue a Certificate of Occupancy. If there is even one element missing or the paperwork doesn’t match the actual work, the city will simply not proceed. This is their way of ensuring the building was completed legally and following the plans.
Sadly, many people often miss something simply because they want to finish their project and move on. This is why it is critical to be organized from the get-go. There should be a record of every permit and inspection report as you go, as this will save you problems and time when you are trying to receive that all-important certificate of occupancy without issues and delays.
3. Unresolved Property Violations
As for your Certificate of Occupancy being denied, it could possibly be due to open code violations on the property. If your property has open issues, for example, unpermitted construction, code violations, or unsafe buildings, the City is not going to issue a CO until those violations have been resolved. It’s just their way of ensuring the building is actually safe for people to use or occupy.
In many instances, owners are not even aware of open violations on their property, especially if they have changed hands a few times. Even minor issues, bad wiring, handrails missing, can cause you unnecessary delays. A lot of these can be rectified just by reviewing the history of the property and addressing the outstanding issues before applying for a CO. Otherwise, you’ll find yourself engaged in a maddening game of back and forth with inspectors while missing due dates and timelines that keep getting pushed back, i.e. opening or moving in.
Importance of Securing a Certificate of Occupancy
1. Legal Occupancy
Getting a Certificate of Occupancy is not merely a bureaucratic step. A Certificate of Occupancy is what makes your use of the property legal. You cannot occupy the building, rent or lease it to someone else, or operate a business without one. Skipping this could lead to fines, legal hassles, or even eviction. Perhaps you might say, “But it seemed like everything was OK!” That’s irrelevant to the determination of your occupancy. A missing CO is a dealbreaker when it comes time to sell, as a missing CO can turn off customers or ruin your sale. The Certificate of Occupancy will give you safety. A CO certifies that your building meets the zoning and safety requirements, so you know what risks exist and that you conduct business safely.
2. Tenant Safety
Securing a CO is more than just about following the rules; it’s more about ensuring tenants are safe. As stated earlier, this document shows that your building has passed necessary electrical wiring, plumbing, fire safety, and structural soundness inspections. Without it, there’s no absolute guarantee that the space is safe to live or work in. For most tenants, it means peace of mind, knowing the building won’t put them at any risk. As a property owner, it’s a way to build trust and avoid potential legal troubles. A CO protects everyone who walks through the door.
Conclusion
Understanding the reasons behind a denied Certificate of Occupancy is quite important for any property owner, whether building a home or opening a business. Safety standards, incomplete documentation, and unresolved property violations are issues that can delay your plans. The Certificate of Occupancy isn’t just paperwork; it’s your commitment to safety, legality, and peace of mind for you and your tenants.
