New York City’s rent stabilization system is safe for now, after a federal appeals court on Monday upheld laws capping rent increases and limiting evictions on roughly a million apartments citywide.
The Second Circuit Court of Appeals affirmed the decades-old rent stabilization laws in response to two related court challenges from landlord trade groups and a collection of property owners seeking to dismantle the tenant protections.
Those plaintiffs, led by the Community Housing Improvement Program and the Rent Stabilization Association (RSA), sued the city and state arguing that the rent stabilization laws violate the Constitution’s “takings clause” by forcing owners to cap prices for their personal property while limiting their ability to legally evict tenants.
But the Second Circuit judges referred to U.S. Supreme Court precedent and prior decisions to strike down each argument against the 54-year old stabilization system, which was strengthened by state lawmakers in 2019.
“All in all, as with previous versions, the [Rent Stabilization Law] ‘regulates land use rather than effecting a physical occupation,’ the judges wrote, citing previous decisions. “The case law is exceptionally clear that legislatures enjoy broad authority to regulate land use without running afoul of the Fifth Amendment’s bar on physical takings.”
The landlords say they will next try to get the U.S. Supreme Court and its conservative majority to weigh in.
“We always expected these issues to be decided by the Supreme Court and are confident we will ultimately prevail, and finally compel leaders around the country to create real and fair solutions for our nation’s housing challenges.” said Kimberly Winston, a spokesperson for CHIP and RSA.
The two rulings were cheered by tenants’ rights groups, including some who intervened in court to counter the landlords’ claims.
“This is a great victory for tenants,” said Ellen Davidson, a staff attorney with Legal Aid’s Civil…
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