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2nd Circuit Rejects Rent Control Challenge, Says Government Has Wide Powers To Regulate Land Use

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Kamaji:
Federal Appeals Court Rejects Rent Control Challenge, Says Government Has Wide Powers To Regulate Land Use

The 2nd Circuit reasoned that the government hasn't necessarily taken a landlord's property when it forces him or her to operate at a loss while renting to a tenant he or she never agreed to host.

CHRISTIAN BRITSCHGI
2.7.2023

A federal appeals court has ruled that the government hasn't necessarily taken a landlord's property when it forces him or her to operate at a loss while renting to a tenant he or she never agreed to host.

That's the view of the U.S. Court of Appeals for the 2nd Circuit, which yesterday struck down a challenge to New York's rent stabilization law brought by two landlord associations that argued that limits on rent increases and evictions passed in 2019 were so strict, they were an effective seizure of their property.

The court rejected these arguments, partially on the grounds that landlords hadn't proven that rent stabilization had eliminated the income of every single owner of a rent-controlled building.

"When permissible rent increases are outpaced by operating cost increases, the result may be a reduction or, in some cases, the elimination of net operating income," reads the 2nd Circuit's opinion. But "appellants have simply not plausibly alleged that every owner of a rent-stabilized property has suffered an adverse economic impact."

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Source:  https://reason.com/2023/02/07/federal-appeals-court-rejects-rent-control-challenge-says-government-has-wide-powers-to-regulate-land-use/

Cyber Liberty:
What's your opinion on this?  Is "rent control" a Taking?

Kamaji:

--- Quote from: Cyber Liberty on February 08, 2023, 07:53:31 pm ---What's your opinion on this?  Is "rent control" a Taking?

--- End quote ---


It's a gray scale sort of thing.  Rent control is probably not a per-se taking, but if it gets rigid enough, it could shade over into a taking.  It will be interesting to see if the Supreme Court has any appetite to take the case.

Cyber Liberty:

--- Quote from: Kamaji on February 08, 2023, 09:53:37 pm ---
It's a gray scale sort of thing.  Rent control is probably not a per-se taking, but if it gets rigid enough, it could shade over into a taking.  It will be interesting to see if the Supreme Court has any appetite to take the case.

--- End quote ---

Thanks!  I agree, it appears to be a grey area.

Fishrrman:
Best advice:
Neither a landlord nor a tenant be.

That covers it.

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