I bought a house 4 years ago in Queens, NYC. The basement had a sink and toilet and was not finished. ?

I invested like 10k into fixing the basement. Put laminated floors, a drop down ceiling, new light fixtures and new walls. I also fixed the bathroom. A brand new basement with a new sink, new toilet and a stand up shower. I have a spot to finish building a bar but haven't got time to finish it (or money). Now my neighbor called the buildings department on me stateing that I have tenants living downstairs. I don't have anyone living down there and he knows that but I am worried that maybe the basement might be illegal. What should I do? Should I let the inspector in to see the basement? Will thjey hit me with fines? Please help me with this problem.

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