The U.S. Supreme Court announced Monday it will not hear an appeal aimed at tossing the city’s rent stabilization laws. The high court refused to hear an appeal from Manhattan couple James and Jeanne Harmon who lost earlier attempts to get the laws thrown out.
The couple inherited a building on the Upper West Side but they say rent stabilization laws force them to rent some apartments at 59 percent below market price.
They argue that the government has illegally taken their property by giving tenants lifetime tenure with succession rights.
A federal judge and the second U.S. Circuit Court of Appeals have both thrown out their lawsuit.
In a statement, City Council Speaker Christine Quinn said she is pleased with the Supreme Court’s decision, adding the decision “is consistent with longstanding precedent that affirms the City and State’s authority to enact these laws, which are an integral part of the City’s effort to provide affordable housing to New Yorkers.”
(Source: NY1)
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4 Responses
A lawyer specializing in property would say that they inherited a right to collect 60% of the rent. If they don’t like it, they can always pass on accepting the inheritance. Since the courts have already upheld the rent stabilization and rent control laws, it’s a bit late to challenge them in the courts. It will require a legislative action to end this destructive practice which has led to underinvestment in residential housing in New York, which causes high rents. Almost all other cities get along fine with free markets, and as a result, pay less in rent since private investors have an incentive to build more housing.
Akuperma, it could also take judges who are willing to undo the wrong decisions of the past that upheld this unconstitutional taking in the first place.
All the courts said is that the people of New York through their elected legislators, can fix rents. They never said it was a duty they do so, or that they can’t repeal rent control. A simple statute, and it’s gone. All it takes is for the people of New York to realize they are shooting themselves in the foot by discouraging developers from building additional housing. Remember, that the state legislature and city council are all elected, and the people are free to vote the incumbents out of office.
The constitution says that the government may not take property without compensation. It is open to the courts to recognise that rent control does this, and to require the government to either compensate landlords or end the controls. The courts have so far chosen not to do this, but nothing says they can’t in the future. Unfortunately the time for that seems not to have arrived yet. But perhaps one day it will, and the courts will strike down the mass of such legislation, which would never be tolerated if it were personal rather than economic liberty that were being restricted.