Owners of rent-stabilized apartments are facing a financial crisis, according to reporting by Bisnow. Operating costs for all multifamily properties are rising, but for rent-stabilized properties, owners are barred from raising rents by amounts that would allow them to cover these increasing costs. This has led to a rise in loan delinquencies and foreclosures, causing some properties to be sold at deeply discounted prices. In turn, lenders have become more reluctant to lend to rent-stabilized properties. With more loans maturing in the coming months, the crisis is expected to worsen. – BisNow
