On April 2, 2020, nearly 10 months after the Housing Stability and Tenant Protection Act of 2019 (HSTPA) drastically amended the rent-regulatory laws of New York in favor of tenants, the New York State Court of Appeals has provided property owners in New York with some good news. While the decision is undoubtedly good news for property owners who have rent overcharge cases, this article will address additional case types positively impacted by this decision.

In a landmark 4-3 ruling (Matter of Regina Metro Co. v. New York State Div. of Hous.& Community Renewal, 2020 NY Slip Op 02127), the Court of Appeals ruled that the rent overcharge provisions of HSTPA, which became effective on June 14, 2019, may not be applied retroactively to rent overcharges that occurred prior to the effective date. The court also found that a provision mandating retroactive application of rent overcharge provisions did not comport with the requirements of constitutional due process. The court concluded that the legislature failed to demonstrate a rational basis for its expansion of an owner’s liability for conduct that was otherwise permissible prior to the enactment of the statute.

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