Landlords still reeling from rent law get bad news

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.