Application of HSTPA Amendments to Pending MCI Application Wasn't Arbitrary or Unconstitutional

Landlord applied for MCI rent hikes based on installation of gas piping. The DRA ruled for landlord in 2022 and approved rent increases in amounts based on HSTPA amendments to the Rent Stabilization Law. Landlord appealed and lost. Landlord argued that the DHCR's retroactive application of HSTPA to the MCI application filed before the act's enactment was unconstitutional, arbitrary, and capricious. Specifically, landlord objected to the 2 percent limit on collectability of an MCI rent increase and the 30-year temporary application of the rent increases. The DHCR pointed out that, since passage of HSTPA, courts had repeatedly found that the DHCR's application of the act's Part K to pending MCI proceedings didn't violate an owner's due process rights. 

26 Grove NY LLC: DHCR Adm. Rev. Docket No. KO43025RO (2/15/24)[3-pg. document]