Unlawful Rent Regulations

A Constitutional Challenge to New York’s Rent Stabilization Law

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About the Law

Community Housing Improvement Program (CHIP), Rent Stabilization Association of NYC (RSA) and individual property owners have challenged the constitutionality of the New York Rent Stabilization law (RSL) and actions by the City of New York under that law. Their lawsuit charges that the overly burdensome regulatory scheme violates the Due Process and Takings clauses of the United States Constitution.

The RSL, first enacted in 1969 and revised numerous times – most recently in June 2019 – has, in over 50 years, never achieved the objectives claimed by its proponents, which include providing affordable housing to low income families, reducing the city’s housing crisis and maintaining socio-economic and racial diversity in the city. The plaintiffs filed suit seeking declaratory and injunctive relief against future enforcement of the rent stabilization scheme, which will not only halt the deprivation of the constitutional rights of property owners, but will result in increased development of rental properties and more affordable units available to rent. The suit will also alleviate New York’s constrained housing market, and will force New York City and State governments to adopt fairer and more efficient means of providing housing to those most in need.