New Laws Apply to Applications Filed Prior to June 15th
As if the Housing Stability and Tenant Protection Act of 2019 (HSTPA) wasn’t already a major blow to the rental housing industry, a recent decision by DHCR will affect hundreds of Major Capital Improvement (MCI) applications.
As you know, drastic changes were made to MCIs by the HSTPA that was enacted on June 14, 2019. For example, MCI increases are now capped at 2% and have been made temporary, requiring the increase to come off a tenant’s rent after 30 years. Additionally, owners cannot apply for MCI increases if only 35% or fewer of the apartments in their building(s) are rent regulated.
In early November, DHCR ruled that the latest changes to the MCI rules are retroactive and that any owners who filed an MCI application prior to the enactment of the HSTPA, or any applications that were pending prior to June 14th, will still be subject to the new rules despite the fact that the previous laws were in effect when the building owner applied.
According to an article in The Real Deal, many building owners have already been notified by DHCR that any pending applications for MCIs that they may have filed at any point prior to the HSTPA have been denied as a result of the changes to the laws.
By the end of November, DHCR was actively updating their Fact Sheets, Operational Bulletins and other documents on their website, including Fact Sheet #24 Major Capital Improvements, in order to reflect the HSTPA. According to DHCR Commissioner RuthAnne Visnauskas, the agency will provide additional guidelines with regard to MCIs in the near future.
To view all of the updated documents from DHCR, visit https://on.ny.gov/2NWIe0I. Please be sure to check the website frequently as DHCR continues to update the documents regularly in order to help building owners comply with the latest changes to the laws.