US Supreme Court won't hear challenge to rent stabilization laws

us supreme court won't hear challenge to rent stabilization laws

FILE PHOTO: Manhattan skyline is seen during sunset in New York City, New York, U.S. March 29, 2023. REUTERS/Amanda Perobelli

By John Kruzel

WASHINGTON (Reuters) -The U.S. Supreme Court on Tuesday turned away a bid by landlords to challenge rent stabilization laws in New York City that cap rent hikes and make it harder to evict tenants.

The justices declined to hear appeals by property owners and industry groups of lower court rulings that found the price and eviction controls did not violate what is known as the “takings clause” of the U.S. Constitution’s Fifth Amendment, which bars the government from taking property without compensating owners.

New York City’s modern rent stabilization system, enacted in 1969, was designed to address a shortage of affordable housing by capping rent increases and curbing the authority of property owners to evict tenants.

The law, which was passed by New York state legislature and is implemented by the city, generally applies to buildings constructed before 1974 with at least six units, covering nearly one million apartments – around half of all apartment rentals in New York City. A city government panel each year decides the percentage increase landlords can charge for rent-stabilized units.

According to proponents, rent stabilization measures protect communities by reducing tenant dislocation and homelessness, and by allowing residents to have long-term homes in a neighborhood.

The New York law was amended in 2019 to expand tenant protections, drawing legal challenges from landlords and trade associations seeking higher investment returns and more control over their property.

The Manhattan-based 2nd U.S. Circuit Court of Appeals rejected that constitutional challenge in several recent rulings, prompting appeals to the Supreme Court.

The “takings clause” states that private property shall not be “taken for public use, without just compensation.”

Challengers to rent stabilization laws have said their “takings clause” argument is supported by a Supreme Court decision from 2021. In that case, the justices ruled that a California regulation allowing union organizers to enter agricultural properties without an employer’s consent was akin to the government taking private property for public use without just compensation in violation of the Fifth Amendment.

(Reporting by John Kruzel; Editing by Will Dunham)

News Related

OTHER NEWS

Lawsuit seeks $16 million against Maryland county over death of pet dog shot by police

A department investigator accused two of the officers of “conduct unbecoming an officer” for entering the apartment without a warrant, but the third officer was cleared of wrongdoing, the suit says. Read more »

Heidi Klum shares rare photo of all 4 of her and Seal's kids

Heidi Klum posted a rare picture with husband Tom Kaulitz and her four kids: Leni, 19, Henry, 18, Johan, 17, and Lou, 14, having some quality family time. Read more »

European stocks head for flat open as markets struggle to find momentum

This is CNBC’s live blog covering European markets. European markets are heading for a flat open Tuesday, continuing lackluster sentiment seen at the start of the week in the region ... Read more »

Linda C. Black Horoscopes: November 28

Nancy Black Today’s Birthday (11/28/23). This year energizes your work and health. Faithful domestic routines provide central support. Shift directions to balance your work and health, before adapting around team ... Read more »

Michigan Democrats poised to test ambitious environmental goals in the industrial Midwest

FILE – One of more than 4,000 solar panels constructed by DTE Energy lines a 9.37-acre swath of land in Ann Arbor Township, Mich., Sept. 15, 2015. Michigan will join ... Read more »

Gaza Is Falling Into ‘Absolute Chaos,’ Aid Groups Say

A shaky cease-fire between Israel and Hamas has allowed a surge of aid to reach Palestinians in Gaza, but humanitarian groups and civilians in the enclave say the convoys aren’t ... Read more »

Bereaved Israeli and Palestinian families to march together in anti-hate vigil

Demonstrators march against the rise of antisemitism in the UK on Sunday – SUSANNAH IRELAND/REUTERS Bereaved Israeli and Palestinian families will march together as part of an anti-hate vigil on ... Read more »
Top List in the World