A certificate of occupancy is a document that certifies a building complies substantially with approved plans and specifications and is ready and safe to be occupied. It describes the legal use and maximum occupancy for a building and certifies that the structure complies with all housing and building codes.
Certificates of occupancy are issued by a government agency or building department and are sometimes known as a use-and-occupancy certificate, a U&O, a C of O or just a CO.
Certificates of Occupancy Requirements
In the U.S., requirements and procedures for obtaining a certificate of occupancy vary widely among jurisdictions, but one is generally needed for new buildings, ones that are being substantially renovated or remodeled, and for buildings where the usage is changing.
They are also generally required whenever the occupancy of an industrial or commercial building changes or when the ownership of an industrial, commercial, or multifamily residential building changes.
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A new certificate of occupancy may also be required after damage from a natural disaster, such as a flood, a fallen tree, or a tornado.
Inspections and Certificates
Various inspections and certificates are needed before a building authority will issue a certificate of occupancy. They vary by jurisdiction but typically include a general building inspection that reviews the electrical wiring, the plumbing, and the overall structural integrity of the building.
An additional inspection for fire safety is also required, which includes a review of smoke detectors, fire extinguishers, and sprinkler systems.
In some cases, a temporary certificate of occupancy will be granted, which gives building owners and residents all of the same rights as a certificate of occupancy, but for a limited period of time, typically 90 days.
This allows for the occupation of finished parts of a building that is still under construction.
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Example: New York City
In New York City, a number of inspections are required before a building is granted a certificate of occupancy. These typically include plumbing, electrical, and elevator inspections, as well as fire pump pressure tests and an inspection of the fire sprinkler system.
An architectural inspection will be performed to ensure that the structure was built in accordance with an architect’s stamped and approved drawings.
It is a critical step in closing out a new construction project, as banks and insurance companies typically require a valid certificate of occupancy before they will issue a mortgage or a homeowners’ policy.
Obtaining a certificate of occupancy is a critical step in closing out a new construction project. After the builder has completed a residence, and before it can be sold and occupied, an inspector visits the building to make sure the new, or renovated, structure meets all codes, that there are no remaining safety hazards and that the home is ready for occupancy.
