Landlords who applied for rent hikes via MCI’s before the new rent stabilization law took effect are out of luck. The state’s division of Homes & Community Renewal says applications that were pending at the time the new law went into effect on June 14 must abide by the new policy.
- The 35% rule: The new law retains MCI’s in a building that is comprised of 35 percent rent stabilized units. In such a scenario, the legislature also limits annual rent increases to six percent.
- Absurdity explained: Applying this rule retroactively violates any notion of fairness because applications can take several months or even years to be processed.
- Stay tuned: Both landlord and tenant attorneys told TRD to anticipate challenges to this new restriction in court.