U.S. Supreme Court Declines to Hear Another Challenge to Rent Regulation

Landlords sued the City of New York, the DHCR, and the NYC Rent Guidelines Board in federal court soon after the HSTPA was enacted in 2019 to amend the Rent Stabilization Law. Among other things, they claimed that the HSTPA amendments resulted in physical and regulatory takings of property in violation of the Fifth Amendment of the U.S. Constitution, as well as the 14th Amendment Due Process Clause. In 2023, the Second Circuit ruled against landlords (LVT #32482), who then sought leave to appeal to the U.S. Supreme Court.  On Feb. 20, 2024, the Supreme Court denied certiorari, meaning that it declined to hear the challenge sent up after the ruling by the U.S. Second Circuit Court of Appeals. As is usual, in cases denying certiorari, the Court provided no explanation for its decision, although Justice Thomas issued a concurring statement indicating that the case pleadings didn't provide enough information for consideration but that he believed that in "an appropriate future case," the Court should grant certiorari to address questions raised by rent regulation. Along with its decision on the 74 Pinehurst case, the Supreme Court also denied certiorari in the companion case of 335-7 LLC v. City of New York.

74 Pinehurst LLC v. State of New York: Nos. 22-1130 and 22-1170, 2024 U.S. LEXIS 985, 2024 WL 674658 (USSC; 2/20/24; Roberts, Thomas, Alito, Sotomayor, Kagan, Gorsuch, Kavanaugh, Barrett, Jackson, JJ).