Supreme Court Interested In Tenant Case That Could Affect City's Rent Regulation Laws

By: Zack Fink

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Although rent regulations have existed in New York City since the end of World War I, the U.S. Supreme Court has interest in hearing a case from Manhattan that could have a profound impact on those laws and the city's roughly one million rent-stabilized or rent-controlled apartments. NY1's Zack Fink filed the following report.

Renewing rent protections in New York City is a constant battle in Albany. But a challenge a Supreme Court challenge to the constitutionality of those laws has forced the city and state to respond by March 5.

"I think a lot of people underestimated this case in the first instance, since it was dismissed at the district court and then at the circuit court," said attorney Matt Brett. "I think this court is a conservative court. I think these issues haven't been addressed in a long time. There are four justices on this court who are actually from New York City."

The case concerns James Harmon and his wife, who own a five-story brownstone on the Upper West Side of Manhattan. Three of the units are rent-stabilized and rented out to tenants.

When the Harmons tried to move residents out of two of those units for their granddaughter, they were unable to do so.

Since two of the apartments are occupied by tenants over the age of 62, current rent stabilization law says the Harmons can recover their apartment only if they provide those tenants with "an equivalent or superior housing accommodation" at the same or lower rent in the same neighborhood or nearby.

In other words, the Harmons need to find those tenants an apartment that is unlikely to exist in this current market.

"And I think it struck Jim Harmon that, 'There is something wrong that I don't get to live in my own home, and that I am subsidizing people who could afford to live elsewhere.' One of the tenants he is seeking to oust owns a home on Long Island," said attorney Sherwin Belkin.

However, defenders of the law say whatever the reason, rent regulations are still needed.

"The truth is if we were starting from scratch we might not have rent regulation laws," said Manhattan Senator Liz Krueger. "There are flaws, just as there are flaws in every law. The bottom line for New York City is absent the continuation of over a million units of affordable housing, we would have a homeless crisis beyond any of our comprehension."

The court could hear the case as early as October.