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Queens Pols Would End MCI Program for Rent-Regulated Apts.
A pair of Queens-based state legislators, Sen. Michael Gianaris and Assembly Member Brian Barnwell, have introduced legislation ending Major Capital Improvements (MCIs) for landlords of rent-regulated apartments.
They argue that the MCI program, introduced in the 1970s to incentivize landlords to make repairs or improvements in exchange for rent increases, “is too-often abused,” as Gianaris told Crain’s New York Business.
Under the legislation, Barnwell said in a statement, “landlords will not be able to increase tenants’ rents due to repairs/improvements the landlord should already have made.” Instead of rent increases, the bill would provide tax credits to offset the cost of improvements.
The Rent Stabilization Association is opposed to the measure, arguing that to finance capital improvements, landlords must demonstrate an increased revenue stream in the form of higher rents to pay back the loan. “You can’t capitalize a property tax abatement like this,” the group’s Jack Freund told Crain’s.
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