NYC Landlords Adapt to Political and Economic Headwinds

NYC landlords at the 2026 CREFC conference discuss adapting to HSTPA regulations, rising operational costs, and the importance of resident engagement in a tough underwriting climate.

By: AXL Media

Published: Mar 12, 2026, 8:35 AM EDT

Source: https://www.multihousingnews.com/

The Regulatory and Underwriting Crunch

The primary obstacle cited by the panel is the continued impact of the Housing Stability and Tenant Protection Act (HSTPA) of 2019. This legislation has fundamentally altered the underwriting landscape for rent-regulated apartments.

Limited Rent Growth: Underwriters are now assuming flat or minimal rent growth for regulated units, as the ability to recoup costs for major capital improvements (MCIs) or individual apartment improvements (IAIs) remains severely restricted.

Rising Operational Costs: Landlords are caught between capped revenues and double-digit increases in insurance, utilities, and labor.

Compliance Risks: Ariel Levin of CWCapital noted that failures in historical rent registration can now trigger overcharge claims dating back a decade, complicating the due diligence process for lenders and special servicers.

A Shift from Passive to Active Management