Supreme Court Decision Upholds New York Rent Stabilization Laws

​In October 2023, the US Supreme Court declined to hear a challenge to New York’s rent stabilization laws. The dismissal means that the 2019 laws affecting rent-regulated units remain in place.

Two groups representing owners of apartments with rent-regulated units brought the challenge before the US Supreme Court. They are the Rent Stabilization Association and the Community Housing Improvement Program. The two argued that the stringent rent stabilization regulations enacted in 2019 unconstitutionally limited their ability to earn profits or invest in their buildings.

The 2019 laws prohibited landlords from reclaiming units that were rent regulated, a practice they were doing before. The laws also required landlords to strictly adhere to rent increase allowances issued by the Rent Guidelines Board. The two landlord groups opposed the new regulations, arguing that their operating costs were rising faster than rent increases and that rent caps were making it difficult to maintain their buildings, leading to foreclosures.

The two groups initially filed suit against the state’s rent stabilization laws at federal courts in 2019. They failed at that level, prompting them to bring their case to the Supreme Court. The dismissal of the case by the court means that New York’s 2019 rent stabilization laws remain in place. However, there are two other cases before the Supreme Court on the same issue.

Ariel Soudry

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