US Supreme Court denies Clipper’s rent regulation petition

The REIT had filed the petition in October

New York /
Jan.January 14, 2020 05:56 PM
Clipper Equity's David Bistricer (inset) and the US Supreme Court (Credit: RealInsight and Getty Images)

Clipper Equity’s David Bistricer (inset) and the US Supreme Court (Credit: RealInsight and Getty Images)

Clipper Equity wasn’t one of the lucky 150.

The U.S. Supreme Court, which hears roughly 150 out of the 7,000 cases it is asked to review a year, has declined to hear Clipper Equity’s challenge to New York’s rent regulation rules.

The landlord filed a petition in October, asking the court to weigh in on whether a New York Court of Appeals decision represented “an uncompensated taking of [Clipper’s] property.” The court had ruled in favor of tenants, finding that apartments at two Clipper buildings should’ve remained rent regulated while the landlord was receiving a 421-g tax break.

“We’re not surprised, but we’re pleased,” attorney Robert Smith, who represented the tenants in the case, said of the court’s decision. Representatives for Clipper didn’t return calls seeking comment.

Back in June 2016, tenants at 50 Murray Street and 53 Park Place, along with residents of an Equity Residential property, filed a lawsuit against the the real estate investment trust, alleging that it illegally raised rents and deregulated units while receiving 421-g benefits. At the time, the REIT argued that it had the right to take units out of regulation once rents reached a certain threshold (a practice known as luxury decontrol). Clipper won an appeal against tenants in January 2018, but that decision was reversed in June 2019 by the state’s Court of Appeals, which found that the apartments should have remained rent-stabilized.

Clipper then filed a petition with the Supreme Court, arguing that the ruling violates the Fifth Amendment’s takings clause and the Fourteenth Amendment’s due-process clause.

The REIT, headed by David Bistricer, is also part of a coalition of landlords bankrolling a federal lawsuit challenging the constitutionality of the new rent stabilization law passed in June, which eliminated luxury decontrol among other changes. Since the measure’s enactment, there have been at least two other federal complaints filed challenging the law.


Related Articles

arrow_forward_ios
CHIP executive director Jay Martin (iStock)

Rent-stabilized tenants owe landlords more than $1B

Rent-stabilized tenants owe landlords more than $1B
Emerald Equity Group's Isaac Kassirer and231 East 117th Street (Google Maps)

Some of Isaac Kassirer’s Harlem buildings head to bankruptcy

Some of Isaac Kassirer’s Harlem buildings head to bankruptcy
The Real Deal's December 2019 and September 2019 issues

The Real Deal wins 14 NAREE journalism awards

The Real Deal wins 14 NAREE journalism awards
Clockwise from top: David Bistricer of Clipper Equity, Joseph Chetrit a rendering of the Gramercy Square condominium and Robyn Sorid of G4 Capital Partners (Photos via Clipper Equity, Getty, VUW, G4)

Chetrit, Bistricer’s Gramercy Square condo lands $207M loan

Chetrit, Bistricer’s Gramercy Square condo lands $207M loan
President Donald Trump and 1483 Shore Parkway in Brooklyn (Getty; Google Maps)

Lawsuit targets Trump for “fraudulent” rent overcharge scheme

Lawsuit targets Trump for “fraudulent” rent overcharge scheme
David Bistricer of Clipper Equity and 10 West 65th Street (REIT; Google Maps)

David Bistricer’s latest brush-up with New York’s rent law

David Bistricer’s latest brush-up with New York’s rent law
Council member Barry Grodenchik (Getty; iStock)

“Absolute craziness”: Critics slam bill requiring sprinklers in every apartment

“Absolute craziness”: Critics slam bill requiring sprinklers in every apartment
2544 Valentine Avenue in the Bronx (Photo via Black Bear Capital Partners)

Bronx rent-stabilized multifamily portfolio nabs $186M loan

Bronx rent-stabilized multifamily portfolio nabs $186M loan
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...