Eileen O'Toole's blog

DHCR Reverses Position on Retroactive Application of Bridge-the-Gap Rule

Following a 2018 court ruling that Rent Stabilization Code (RSC) §2526.1(a)(3)(iii), as amended in 2014, does not have retroactive effect, the DHCR has reversed its prior position that the amended RSC provision applied retroactively to determine legal rents after owners had followed the prior RSC provision to set negotiated first rents after an extended vacancy or temporary exemption from rent regulation.

Immediately Hazardous Violations and MCI Applications

As part of the amendments to the Rent Stabilization Code issued in January 2014, the DHCR changed the way it treats “immediately hazardous” violations, also known as Class “C” violations, that are in effect during the processing of an owner’s application for rent increases based on major capital improvements (MCIs). Immediately hazardous violations typically reflect conditions that pose a threat to life, health, safety, property, the public interest, or a significant number of persons so as to warrant immediate corrective action.