Maxwell Breed and Lisa Liu explain the New York Court of Appeals Court decision that pokes holes in aspects of the constitutionality of the Housing Stability and Tenant Protection Act.
On April 2, 2020, New York’s Court of Appeals, by a 4-3 decision in Matter of Regina Metro. Co. LLC v. DHCR, foreclosed further retroactive application of certain provisions of the Housing Stability and Tenant Protection Act of 2019 (“HSPTA”)—the recent overhaul and perpetual extension of New York’s rent-regulatory laws. Coming in the midst of the COVID-19 crisis, this important ruling would seem to strengthen the pending constitutionality challenges to HSTPA in general. With portions of HSTPA having now failed a constitutional due process analysis, HSTPA’s announced purpose of shifting the cost of providing affordable housing onto private owners may well not withstand the similar regulatory takings analysis.