Following the passage of the Housing Stability and Tenant Protection Act (HSTPA) on June 14, 2019, investors in residential rental properties collectively discovered that the value of their buildings were substantially diminished. Since all rental histories were subject to review under HSTPA, neither a seller nor a buyer could have security about the reliability of a building’s rent roll. Effectively, all rental histories were subject to scrutiny and the potential for rent overcharge liability was devastating. Without perfect recordkeeping it was hard make representations as to the reliability of rents.
