The state of New York’s rent regulation laws in 2023 is showcased in a nondescript studio located in Murray Hill. This studio, situated in a rental building, was occupied by the same European immigrant for several decades. Despite experiencing gradual rent increases over the years, the tenant passed away in 2021 due to COVID-19. However, the apartment remains unoccupied as the landlord refuses to invest the necessary funds to make it habitable. New housing laws implemented in 2019 limit the amount landlords can recover from renovating rent-regulated apartments, even if the previous tenant lived there for an extended period. As a result, there are approximately 40,000 “ghost apartments” across New York that are left empty by landlords during a time of high demand for housing.
The fate of New York City’s rent-controlled and stabilized apartments, which are home to approximately one million residents, is highly debated and often considered sacred. However, landlords backing a series of lawsuits hope to challenge the constitutionality of these housing regulations in the US Supreme Court. Drawing inspiration from recent conservative-heavy court decisions like Roe v. Wade and Affirmative Action, these landlords believe that they have a rare opportunity to secure a favorable outcome and potentially end rent stabilization in New York. This strategic focus on the Supreme Court is driven by its demonstrated willingness to overturn long-standing legal precedents. The landlords aim to position rent regulations as unconstitutional and have the court decide their fate.
The campaign to have the Supreme Court intervene in rent regulation is supported by the Community Housing Improvement Program, a nonprofit organization representing 4,000 property owners. They emphasize that they do not seek to eliminate government regulation or the possibility of a victory ending rent control entirely. Rather, they argue that regulated businesses, including landlords, should be fairly compensated under the Constitution. Their goal is to challenge the current rent regulation laws and bring the issue before the nation’s top judges as soon as possible.
Efforts to negate rent restrictions through legal avenues are not new. In 2012, the Supreme Court declined to hear a case on rent regulation, which provided relief to activists and renters. However, the political landscape has changed significantly, with the Trump-era appointments of conservative justices contributing to a more conservative court than the United States has seen in almost a century. Statistics indicate that a majority of cases in the 2021 term resulted in right-leaning rulings. Recent decisions involving abortion, affirmative action, religious freedoms, and wetland regulation demonstrate a pro-business sentiment among the judges, further encouraging landlords to pursue a favorable outcome in the Supreme Court.
The current push to challenge rent regulations stems from the 2019 Housing Stability and Tenant Protection Act, which limited landlords’ ability to recoup renovation costs through rent increases. Prior to this act, landlords could invest in renovating vacant units and pass on the expenses to new tenants through rent increases. However, the 2019 reforms capped the amount landlords could recoup at $15,000, resulting in lower monthly increases for new tenants. Additionally, apartments are no longer eligible for “deregulation” once they exceed a threshold of $2,744 per month. Landlords argue that these restrictions make it impractical to invest in upgrades, leading to the current situation of thousands of empty apartments across the city.
While some may view the threat to rent control as improbable or treat it with indifference, similar to Justice Anthony Kennedy’s sentiments regarding polarizing issues, the potential impact of a Supreme Court decision to dismantle rent regulations should not be underestimated. A federal ruling against New York City’s rent regulations could have nationwide implications, particularly in cities like Los Angeles and San Francisco, where many rental units are subject to some form of control. Despite potential backlash, landlords are determined to see a change in rent regulations, making appeals for their concerns not likely to sway the court’s decision.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
