Many owners of rent-stabilized buildings originally took out loans under the assumption that they’d eventually be able to use legal loopholes to significantly raise rents on their tenants, but a 2019 law made it tougher to take units out of rent stabilization – and now those landlords are underwater and looking for help from Albany.
The real estate lobby is hoping that during next year’s state legislative session, lawmakers will revisit the landmark 2019 Housing Stability and Tenant Protection Act – not because of shifting public perception but out of necessity. Rent-stabilized multifamily real estate in New York City is undergoing a market correction to account for closed deregulation loopholes, and a rise in foreclosures as loans come due could spell trouble for tenants and landlords alike.
The HSTPA ushered in a variety of progressive housing reforms while closing loopholes that had previously allowed building owners to take units out of rent stabilization…