Housing Stability and Tenant Protection Act of 2019 explained

Short Title:Housing Stability and Tenant Protection Act of 2019
Territorial Extent:New York (state)
Enacted By:New York State Legislature
Date Passed:June 14, 2019
Date Signed:June 14, 2019
Signed By:Andrew Cuomo
Status:current

The Housing Stability and Tenant Protection Act of 2019 (HSTPA) is a New York state statute that introduced major changes to landlord-tenant law.[1]

History

After the 2018 elections – in which Democrats took control of the New York State Senate for the first time in a decade and just the third time in 50 years[2] – momentum began on behalf of changes to landlord-tenant law.[3] [4] Eventually, a package of nine bills emerged which incorporated a large number of proposed changes.[5]

On June 11, 2019, State Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie announced that they had reached a "landmark agreement" on new rent laws.[6] Both houses of the New York state legislature passed the HSTPA on June 14, 2019, and Governor Andrew Cuomo signed the HSTPA into law later that day.

Major provisions

According to Sharon Otterman and Matthew Haag of The New York Times, the HSTPA "mark[s] a turning point" for the millions of New Yorkers living in rent-stabilized apartments "after a steady erosion of protections and the loss of tens of thousands of regulated apartments."

Among the HSTPA's reforms are limits on security deposits to just one month's worth of rent, new protections against evictions, prohibitions on the use of tenant blacklists, the elimination of vacancy decontrol and high-income deregulation, and the closing of the owner use loophole.[7] [8] The law institutes new limits on the amount spent on major capital improvements (MCIs) and individual apartment improvements (IAIs) that can be recovered through increased rent,[9] [10] which tenant groups contended were subject to "routin[e] abuse" by landlords seeking to "jack up rents and push out tenants." The "look back" window for rent overcharge claims was extended from four to six years.[11] [12]

The HSTPA also instituted a number of new protections for residents of mobile homes.[13] Furthermore, the law permits other New York municipalities to institute their own rent regulations. In addition, the HSTPA – unlike its predecessors, which had to be renewed – is permanent.[14]

The one major proposal which did not pass was a "good cause" eviction bill, which would have made it far more difficult for landlords to evict tenants from their apartments in the absence of misdeeds by the tenants.

The HSTPA rent regulation laws did not expel all exit paths for buildings to remove themselves from regulation though. Building owners can still use demolition, substantial rehabilitation, conversion to and from commercial use, and economic infeasibility to continue deregulating their apartments.[15] [16] If a landlord can not prove substantial rehabilitation, though, their rent histories may be seen as unreliable keeping them from moving away from regulation.[17]

Reaction

Reaction to the HSTPA was divided. Tenant groups cheered the bill's passage.[18] Meanwhile, landlord groups worried that some of its provisions would undermine their ability to build and maintain apartment buildings.[19] [20]

Legal challenge

On July 15, 2019, an assortment of landlords and landlord groups initiated a legal challenge to the law in the U.S. District Court for the Eastern District of New York.[21] In a 125-page complaint, the plaintiffs claimed that the Rent Stabilization Law – as modified by the HSTPA – violated their rights under Due Process Clause of the Fourteenth Amendment and the Takings Clause of the Fifth Amendment.[22] [23] This expedited path to federal court became possible following the U.S. Supreme Court's decision in Knick v. Township of Scott.[24] The lawsuits were largely rejected by the District Court, Court of Appeals, and Supreme Court.[25]

See also

External links

Notes and References

  1. News: New Rent Laws Pass in N.Y.: 'The Pendulum Is Swinging' Against Landlords. Wang. Vivian. June 14, 2019. The New York Times. July 20, 2019. en-US. 0362-4331.
  2. News: Democrats Take Control of New York Senate for First Time in Decade. Wang. Vivian. November 7, 2018. The New York Times. July 20, 2019. en-US. 0362-4331.
  3. News: In the Heart of Real-Estate Power, a Housing Movement Nears Victory. Tobias. Jimmy. May 30, 2019. The Nation. https://web.archive.org/web/20190720041710/https://www.thenation.com/article/universal-rent-regulation-new-york/. July 20, 2019. live. The push to enact new rent regulations comes at a politically fortuitous time for the tenants' movement. During the 2018 statewide elections, a slew of left-wing candidates, many of whom rejected real-estate-industry campaign contributions, swept into office and increased the influence of New York progressives just as Democrats regained control of the state Senate for the first time in a decade..
  4. News: Tenants May Get More Protections in New York City, After Decades of Battles. Here's Why.. Ferré-Sadurní. Luis. April 17, 2019. The New York Times. July 20, 2019. en-US. 0362-4331. For years, Republicans controlled the State Senate, and stymied Democratic efforts to strengthen laws affecting about one million rent-regulated apartments in the city. But with a newfound monopoly over the state legislature and governor's mansion, Democrats have wasted little time introducing a cadre of bills aimed at protecting tenants..
  5. News: Across the Country, Progressives Are Pushing for Universal Rent Control — and New York Is Next. Lennard. Natasha. May 14, 2019. The Intercept. July 20, 2019.
  6. News: Landmark Deal Reached on Rent Protections for Tenants in N.Y.. McKinley. Jesse. June 11, 2019. The New York Times. July 20, 2019. Ferré-Sadurní. Luis. en-US. 0362-4331. Wang. Vivian.
  7. News: Rent Regulations in New York: How They'll Affect Tenants and Landlords. Otterman. Sharon. June 12, 2019. The New York Times. July 20, 2019. Haag. Matthew. en-US. 0362-4331.
  8. News: How New Rent Laws in N.Y. Help All Tenants. Ferré-Sadurní. Luis. June 21, 2019. The New York Times. July 20, 2019. en-US. 0362-4331.
  9. News: Tenants and landlords debate New York's expiring rent laws at packed Assembly hearing. Raskin. Sam. May 3, 2019. Curbed. https://web.archive.org/web/20190720041407/https://ny.curbed.com/2019/5/3/18528173/new-york-universal-rent-control-hearing. July 20, 2019. live.
  10. News: No Wonder Big Real Estate Is Fighting New York's New Rent Law. Kasakove. Sophie. June 21, 2019. CityLab. https://web.archive.org/web/20190720150735/https://www.citylab.com/equity/2019/06/new-york-state-rent-control-real-estate-landlords-evictions/592219/. July 20, 2019. live.
  11. News: New York enacts pro-tenant rent law overhaul as landlords plan legal challenge. Slattery. Denis. June 14, 2019. New York Daily News. https://web.archive.org/web/20190720045944/https://www.nydailynews.com/news/politics/ny-rent-regulations-tenants-landlords-overhaul-20190614-ezcbph2fvbf2bn4vmfg5aetfay-story.html. July 20, 2019. live.
  12. News: 'A Real Sea Change': What NYC Tenants Need To Know About The New Rent Reform Deal. Kim. Elizabeth. June 13, 2019. Gothamist. https://web.archive.org/web/20190720153600/https://gothamist.com/2019/06/13/albany_rent_reform_deal.php. July 20, 2019. dead. July 20, 2019.
  13. News: Tenants Won This Round. Stein. Samuel. June 18, 2019. Jacobin. https://web.archive.org/web/20190720044441/https://www.jacobinmag.com/2019/06/new-york-housing-tenants-universal-rent-control. July 20, 2019. live.
  14. News: Rent overhaul signals a 'tectonic shift' of real estate's power in Albany. Chadha. Janaki. June 12, 2019. Politico. https://web.archive.org/web/20190720152835/https://www.politico.com/states/new-york/albany/story/2019/06/12/rent-overhaul-signals-a-tectonic-shift-of-real-estates-power-in-albany-1060040. July 20, 2019. live.
  15. Web site: Deregulation Under the New Rent Laws.
  16. https://rew-online.com/2019/07/legal-viewpoints-what-you-need-to-know-about-nyc%CA%BCs-new-rent-regulations/
  17. Web site: Sweeping Reforms to Rent Overcharge Under New Rent Laws.
  18. News: Tenant advocates and real estate insiders react to New York's rent law reform. Rosenberg. Zoe. June 14, 2019. Curbed. https://web.archive.org/web/20190629203430/https://ny.curbed.com/2019/6/14/18679163/new-york-rent-stabilization-reform-opinions. June 29, 2019. live.
  19. News: Rent Laws' Impact: Tenant Paradise or Return of the 'Bronx Is Burning'?. Ferré-Sadurní. Luis. June 17, 2019. The New York Times. July 20, 2019. Chen. Stefanos. en-US. 0362-4331.
  20. News: Tenants May Get More Protections in New York City, After Decades of Battles. Here's Why.. Ferré-Sadurní. Luis. April 17, 2019. The New York Times. July 20, 2019. en-US. 0362-4331.
  21. News: Landlord groups claim rent laws 'violate the US Constitution' in lawsuit. Ricciulli. Valeria. July 16, 2019. Curbed. https://web.archive.org/web/20190720043544/https://ny.curbed.com/2019/7/16/20696109/nyc-rent-stabilization-laws-federal-lawsuit-rent-guidelines-board. July 20, 2019. live.
  22. News: Landlords Strike Back, Suing to Dismantle Rent Regulation System. Ferré-Sadurní. Luis. July 16, 2019. The New York Times. July 20, 2019. en-US. 0362-4331.
  23. News: New York Landlords Call Rent Control Laws An 'Illegal Taking' In New Federal Lawsuit. Allyn. Bobby. July 17, 2019. NPR. https://web.archive.org/web/20190720043238/https://www.npr.org/2019/07/17/742875001/new-york-landlords-call-rent-control-laws-an-illegal-taking-in-new-federal-lawsu. July 20, 2019. live.
  24. News: RSA, CHIP file lawsuit challenging New York's new rent law. Brenzel. Kathryn. July 16, 2019. The Real Deal. https://web.archive.org/web/20190720044135/https://therealdeal.com/2019/07/16/rsa-chip-file-lawsuit-challenging-new-yorks-new-rent-law/. July 20, 2019. live. Kromrei. Georgia.
  25. News: Supreme Court Turns Away Challenge to New York’s Rent Regulations . Adam . Liptak . 2 October 2023 . .

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