We write to follow up on our June 9, 2023 email blast, wherein we advised you that the New York State Senate passed two bills which significantly impact rent stabilized properties and reverse the property rights and protections provided by the Court of Appeals in Regina and Casey. Last night, the NYS Assembly passed those bills (S2943B/A4047B and S2980C/A6216B; “the Bills”). The Bills can now be delivered to Governor Hochul’s desk for signature, and if delivered, the Governor can either sign the Bills―enacting them into law―or veto them. We note that the legislature’s Democrats, who have pushed this legislation through, hold a veto-proof majority which can override the Governor’s veto.
In addition to the significant changes to the substantial rehabilitation scheme described in greater detail in our June 9, 2023 email blast (including requiring that applications be filed with DHCR within 6 months of the bill’s enactment for substantial rehabilitation work performed at any time in the past), the Bills contain drastic changes to many other areas such as setting rents for newly created apartments, rent calculations and retroactive record retention requirements, the definition of fraud and arduous rent registration penalties.
These bills may have significant effect on your properties and investment expectations. In anticipation of the Bills’ increasingly likely enactment, we recommend that you reach out to us to help you navigate these issues.
If you have any questions, please contact your trusted R&E attorney or Zachary J. Rothken, Head of the firm’s Administrative Law Department, who authored the above.