Two real estate trade groups and seven landlords filed a federal lawsuit on Monday night aimed not just at opposing the new rent laws in New York City, but also at challenging the entire rent-regulation system, which dictates the rents of about 2.4 million tenants who live in nearly 1 million rent-stabilized apartments. They are betting the new laws will bolster their claims that the rent-stabilization system — which subjects units to government-mandated caps on rent increases — is unconstitutional and amounts to an unlawful taking of property. The New York real estate industry, long one of the most dominant lobbies in Albany, suffered a crushing defeat last month when newly emboldened Democratic lawmakers passed landmark legislation to strengthen tenant protections. The sweeping changes to the rent laws, which the industry said would cripple landlords, vexed developers and stunned real estate lobbyists following a deep-pocketed campaign to unsuccessfully fend off the legislation.

Source: New York Times July 16, 2019 16:28 UTC