"In 2019, changes to New York State's rent stabilization laws put 70 Middagh Street at risk of falling further into disrepair by making rehabilitation even more economically infeasible."
"State law exempted buildings that were substantially rehabilitated from rent stabilization, allowing them to charge market rents, provided they met specific conditions."
"In 2023, after updating its framework, DHCR challenged Peak Capital Advisors' attempts to charge market rates, claiming the buildings had not been in 'substandard' condition."
70 Middagh Street, a historic apartment building, underwent significant renovations after changes in New York's rent stabilization laws made rehabilitation difficult. David Gomez's firm, Peak Capital Advisors, invested $150 million to restore the building and others, aiming to charge market rents. However, in 2023, the Division of Housing and Community Renewal challenged this, claiming the buildings were not in 'substandard' condition under new definitions, leading to disputes over rent stabilization and market rate charges.
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