Rent-stabilized property-owners have been struggling to afford needed improvements and investments in their buildings. Because of the changes made by The Housing Stability and Tenant Protection Act of 2019 (HSTPA) to the financial programs of Major Capital Improvements (MCIs) and Individual Apartment Improvements (IAIs), the number of major capital projects like roof or boiler replacements or facade work has dropped dramatically in Westchester County because it often doesn’t make financial sense to lenders or owners to finance them. Just as bad, it has also become challenging to finance repairs for severely damaged apartments when a mid-to-long-term tenant moves out, to modernize and improve apartments for rent-stabilized tenants at comparable levels to market rate apartments, and to make the repairs that would make the apartment safe and appropriate for a new tenant or family.

That solution is The Local Regulated Housing Restoration Adjustment Act -- A.6772-A (Burgos) / S.06352-C (Comrie). This policy aims to once again create incentives for much-needed renovations in rent-stabilized housing relied upon by low- and middle-income, working families. It does so without either needed direct government subsidy or assistance, or increasing rents on existing rent-stabilized tenants by one cent.

After a long-term tenant (10 years or more) moves out of a rent-stabilized unit which needs to be restored, the property owner would submit documentation to the NYS Division of Homes and Community Renewal and get prior approval for the work. The property owner would then submit the legal regulated rents for up to three substantially similar rent-stabilized apartments within a one-mile radius. HCR would then approve raising the new rent for the next tenant to that same level. The bill also contains substantial protections for existing tenants, including anti-harassment measures, requirements that apartments be current with building codes, and other policies.

An empty apartment helps nobody. But once renovated and rented, the new apartment will help the overall financial health of the building, allowing the owner to make repairs more quickly, or invest in energy-efficiency upgrades or other improvements that will make the quality of life noticeably better for all renters.