Ivan Contreras, the head of the housing Association in Queens, used to curry favor neighbors complaining about sudden rent increases. Requests for assistance are received each month. However, in January the Contreras began to come every day for a few people with «letters» in which landlords inform them of produced in-house «significant capital improvements» (Major Capital Improvements — MCI), and improvement on this basis of a payment for housing.
«The last 2 weeks I see that more and more people are going to complain, says Contreras. — Landlords feel that with MCI something happens».
Today, MCI is one of the few legal ways to raise income from renting residential property to rent. Under the current rules, stable rents may be increased up to 6% if the landlord will produce any work for the renovation of the building, install new Windows, boilers and roofs. Often, however, fee increases and after «capital improvements».
Many believe that Democrats, which are now in the majority in both houses of the state Parliament, wants to cancel the MCI, because it was their key election promise. On Tuesday, January 22, Governor Andrew Cuomo announced that he would try at least to «limit» the increase in rent. So now landlords struggling in a hurry, before it is too late to apply about the effected repair.
We are up since 5am ready to make our demands in Albany:
1. #nomoremcis
2. No more rent hikes
3. Strengthen & expand tenant protections #tenantpower #eliminatemcis #universalrentcontrol #EndDisplacement pic.twitter.com/NUF8YZ3RdN
— Iván Contreras (@ivanr_contreras) January 23, 2019
According to Martin Heistein, associate lessor of Belkin Burden Wenig & Goldman, last week, approached by 3 clients for advice about the situation. Typically, the owner of the building serves several improvements in a year or two, and then combines them into a General application for a rent increase. «My advice is apply for the work performed… whatever was done,» answers to its customers Hastein.
Frank Ricci, a lobbyist for the Association for the stabilization of rents, — the same opinion: «I would tell them to complete the work as quickly as possible and to have time to apply to change the law».
Industry groups and investors warn that if you cancel the MCI building will come in a terrible condition, as the service becomes ineffective. «When I will need to replace the boiler asks the landlord Robert Nelson from Nelson Management, I would have to use dental floss, to solve the problem?»
However, it is not so simple. Officials, in particular Mike Gianaris, want to stop the increase of the Fund for affordable housing in new York, claiming that the building was originally to be in good condition. «Landlords only improve those buildings, which are their assets,» says Gianaris.
Our first chant of the campaign: “No more MCI” #abolishmcis #nomoremcis #housingisaright #tenantpower #protecttenants #ourcity #legislativesession2019 pic.twitter.com/UdC6rTFogz
— Iván Contreras (@ivanr_contreras) December 27, 2018
Under current law, the tenants there are several ways to ensure that rent did not increase based on the MCI, or at least to delay this increase for a long period. In the Management of housing and communal services remind: sometimes the final decision about the rent takes years. This process is particularly important for tenants who believe the landlord has not made MCI stated that the work was not performed properly or paid inflated prices.
«They’re installing new Windows when the building is not in need of new Windows — outraged Over’armor, the President of the Association of tenants in Brooklyn. — Install and the cheapest. Windows are thin as paper». Have Association and claims about the work (or rather idle) elevators in buildings whose owners, however, do not hesitate to raise rents.
John Lilienthal, paralegal at Collins Dobkin & Miller, received in January and more decisions on appeals MCI than in a few years. Most of the cases were 2-3 years, and one lasted nearly 10 years. «The only way I can explain it, is the fact that some lawyers advise [his clients]: «Try to solve these issues now»,» says Lilienthal.
(Article prepared according to the Real Deal.)
See also: rental housing in new York is expensive. Winter discounts cancelled.
