The Supreme Court rejected the last of the rent law challenges.
For those keeping count: These were the fourth and fifth attempts to take New York’s 2019 rent stabilization law to the nation’s highest court. On Tuesday, the court denied the petitions to review two cases, one filed by G-Max Management and the other by the Building and Realty Institute of Westchester County and the Mid-Hudson region.
“Today’s decision preserves the unanimous Second Circuit rulings which found that these lawsuits were always wrong on the law and devoid of merit,” Legal Aid, Legal Services NYC and law firm Selendy Gay said in a joint statement.
Both petitions were filed after the court had declined to hear two other petitions in February. In a statement after that rejection, Justice Clarence Thomas offered landlords a sliver of hope, saying that the right case would eventually be picked up to “address this important question.”
These latest petitions, apparently, were also not that case. They argued that the 2019 Housing Stability and Tenant Protection Act violated the U.S. Constitution’s Takings Clause.
Both cases homed in on provisions in the law that restrict an owner’s ability to reclaim stabilized apartments. Owners can only occupy one of a building’s rent-stabilized apartments for personal or family use, and can only refuse lease renewals if they can prove an “immediate and compelling need.”
Owners hoping to convert a rent-stabilized building into a condo must first get 51 percent of tenants to agree to buy their unit, up from the 15 percent threshold in place before the 2019 law. The change has essentially stopped conversions.
City and state officials have shown no interest in overhauling the law, though the state budget this year included changes to how much owners can raise rents to pay for renovations of rent-stabilized apartments.
More pro-tenant legislation may be on the way: On Tuesday, the City Council debated a package of bills that would, among other things, require landlords who illegally evicted a tenant to apply for a certificate of no harassment and provide air conditioning to tenants.
What we’re thinking about: Mayor Eric Adams on Tuesday reiterated concerns that if the FARE Act becomes law, landlords who hire a broker would pass the cost of commissions onto tenants by raising rents. Will Adams veto the bill? Send a note to katryn@therealdeal.com.
A thing we’ve learned: In an attempt to guarantee three-day weekends, the federal government moved Veterans Day in the early 1970s to the fourth Monday of October. The holiday was moved back to Nov. 11 in 1978, according to the U.S. Department of Veterans Affairs.
Elsewhere in New York…
— The Port Authority is rushing to secure a $1 billion loan to pay for the redevelopment of its Midtown bus terminal, Gothamist reports. Officials hope to land the funds before President-elect Donald Trump takes office, concerned that the project could be delayed by his administration.
— Gov. Kathy Hochul indicated on Tuesday that she’ll either revive congestion pricing or propose a replacement revenue stream for the MTA by the end of the year, the Times Union reports. As part of these deliberations, the governor’s office has asked the U.S. Department of Transportation if toll prices from the approved congestion pricing plan could be reduced without triggering a lengthy environmental review, according to Politico. Proponents of the plan are concerned that further delay could kill congestion pricing, given Trump’s opposition.
— New Jersey is entering a drought warning, which could mean water restrictions if conditions do not improve, NBC New York reports. New York is under a drought watch, the first of three advisory levels (followed by warning and then emergency).
Closing Time
Residential: The priciest residential sale Tuesday was $17.6 million for a 4,824-square-foot co-op at 944 Fifth Avenue on the Upper East Side. Curtis Sloane & Kathleen Sloane of Brown Harris Stevens had the listing.
Commercial: The largest commercial sale of the day was $128 million for a 272,535-square-foot, 151-unit residential building and garage at 165 East 66th Street in Lenox Hill. CIM Group sold the property to the Carlyle Group.
New to the Market: The highest price for a residential property hitting the market was $24 million for a co-op unit at 740 Park Avenue on the Upper East Side. Chase Landow of Serhant has the listing. — Matthew Elo