Legal Question in Construction Law in New York

Re: recourse for house renovation not to code

Not likely. You have no claim against the town, because this kind of governmental function is immune from suit. You have no contract with the builder. You might have a claim against the previous owner, but it is unlikely that the contract for sale provided that the seller's representations (and there probably weren't any of those anyway) would survive the closing of title. The rule is that all obligations under the contract are "merged into the deed" unless the contract says they survive the closing.

You might have a claim against the house inspector, but no other avenues are apparent.