DHCR Applies HSTPA Changes to Landlord's Pending MCI Application After June 14, 2019

Landlord applied for MCI rent hikes in April 2019 based on gas repiping. The DRA ruled for landlord but modified the rent increases that landlord applied for to conform with substantial changes to the rent increases permitted under rent stabilization that were enacted by HSTPA and made effective "immediately" as of June 14, 2019.  On the effective date of HSTPA, landlord's application was still pending before the DRA.

Landlord appealed and lost. Landlord argued that application of the HSTPA amendments to its application was an improper retroactive application of the law, violated landlord's due process rights and substantially reduced the amount of rent increase the owner was entitled to receive at the time it filed its MCI application. The DHCR found no impermissible retroactive application of the law in the DRA's ruling. The DHCR found that, while an applicant, landlord didn't possess a legal right to an MCI rent increase, didn't bear any increase in liability for past conduct as a result of the MCI amendments enacted by HSTPA, and didn't have any new duties imposed on it with respect to transactions already completed. The DHCR also disputed landlord's claim that undue administrative delay caused its application to be pending at the time the HSTPA was enacted.

Andiamo Realty LLC: DHCR Adm. Rev. Docket No. IV430015RO (4/13/23)[3-pg. document]