Powerful landlord groups fight back against new rent law… The Rent Stabilization Association and the Community Housing Improvement Program have hired law firm Mayer Brown to file a lawsuit in a New York federal court next month.
- Dig Deeper: The case will argue that his new rent law violates owners’ constitutional right against the “unlawful taking of property.” The Fifth Amendment’s “taking” clause curbs the government’s right to seize private property for its own gain.
- Worth Noting: REBNY will be behind the scenes… Even though John Banks called the legislation a disaster for the city, the real estate lobby will sit out the court battle as it prefers to work behind the scenes to soften the law’s impact, according to the NYPost. It’s still surprising that Cuomo wouldn’t even threaten to veto the bill to lessen the blow.
- Be Smart: The US Supreme Court on Friday reversed a precedent that made it difficult to file suits in federal courts over state laws. This makes it easier for landowners to sue for compensation when a local state regulation reduces the value of their property. Stay tuned!