The United States Supreme Court has chosen not to take up two lawsuits that were brought challenging New York’s rent stabilization laws. The lawsuits would have, if successful, potentially undermined the state’s regulations on rent stabilized apartments, potentially allowing landlords to increase the rates on regulated apartments dramatically. However, their rejection means that these laws will remain in place, at least for now.
What Were These Two Lawsuits?
The two lawsuits that were being considered by the Supreme Court, 74 Pinehurst LLC v. New York and 335–7 LLC v. City of New York, were brought by landlords who own “small and midsize apartment buildings” in New York City. Among other things, the lawsuits alleged that New York’s rent stabilization laws constituted an “indefinite, infinitely renewable lease” that the landlords could not voluntarily terminate. This, they argued, was an unconstitutional deprivation of property rights that violated the takings clause of the Fifth Amendment.
What Were They Trying to Accomplish?
The ultimate goal of these lawsuits was to challenge, and potentially strike down, New York’s rent stabilization laws. These laws aid low-income New Yorkers by keeping a certain number of apartments at much lower rent compared to the rest of the market, keeping them affordable and preventing landlords from increasing rents too much. However, landlords despise these laws because they suppress rent prices and prevent landlords from maximizing the revenue from their properties.
Why Were They Rejected?
The two lawsuits were rejected by the Supreme Court due to problems with their pleadings, which only make generalized claims as to their injuries. In other words, the issues they face are problems that everyone under rent stabilization laws face, and thus they failed to name specific injuries that could give standing to a case or controversy before the court. Supreme Court Justice Clarence Thomas, who wrote the statement rejecting the case, noted that another similar case might be able to be considered if a better pleaded case involving the same issues came before the court.
What Happens Now?
For now, New York’s rent stabilization laws will remain in effect. However, as landlords continue to challenge the legality of these laws, it remains a possibility that they may be struck down by the courts at some point in the future. If that happens, it could be a major boon to landlords, while also worsening New York’s continuing affordability problems.
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