I am also on LI.
You DO NOT have to let them in.
Yes it's true they have to get a warrant to be able to get in.
In reality, they are not going to get a warrant to get into your home. It is way too much trouble.
The inspector will try a few times and probably go away.The worst thing to do is let him in because he will then have proof of the illegal basement apt. and fine you and make you take out the apartment. If you have tenants, make sure they do not let anyone in. Also post a NO TRESSPASSING sign on the property. That applies to building inspectors too.
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