NY’s Rent Stabilization Law Deemed Constitutional in Eastern District Court of New York

In a hit to landlords in New York, a judge in the Eastern District Court of New York dismissed the claims of landlords challenging a newly implemented rent stabilization law in NY. A prior article on this matter can be found at: NYC Landlords Sue to Overturn Second Year of Rent Stabilization Freeze.

The Court noted that:
Supreme Court and Second Circuit cases foreclose most of these challenges. No precedent binding on this Court has ever found any provision of a rent-stabilization statute to violate the Constitution, and even if the 2019 amendments go beyond prior regulations, “it is not for a lower court to reverse this tide.”

https://images.law.com/contrib/content/uploads/documents/389/judge-komitee-decision-upholding-rent-stabilization-laws.pdf

The Plaintiffs in these matters claimed that the new rent stabilization laws were akin to a takings of the property of landlords without compensation from the government and that the new law was not in the expectation of the landlords, since the amendment to the law is more onerous than prior laws.

We shall see an appeal of this matter to the 2nd Circuit. Hayes & Simon shall update the reader when more is known. For more information on these challenge please see an article at the New York Law Journal at: Brooklyn Federal Judge Affirms Constitutionality of New York’s Rent Stabilization Law.

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