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HSTPA Survives Federal Constitutional Attack
The Housing Stability and Tenant Protection Act (HSTPA), enacted in 2019, has generated considerable litigation by landlords in both state and federal court. In Building and Realty Institute of Westchester and Putnam Counties, Inc. v. State of New York, 2021 WL 4198332, Judge Kenneth Karas of the United States District Court for the Southern District of New York dismissed takings, substantive due process, and contracts clause challenges to the statute.
Two groups of Westchester landlords and real estate organizations brought separate actions against the state, the DHCR, and various state officials. The complaint focused the HSTPA's tenant friendly amendments to the rent stabilization law. Those amendments eliminated luxury decontrol, limited vacancy increases, increased the percentage of tenants necessary for a co-operative conversion, reduced the ability of landlords to recoup expenditures made for major capital improvements, and prohibited a landlord from recovering more than one apartment for personal use. In the two companion cases before Judge Karas, landlords contended that the amendments worked a physical taking and a regulatory taking, violated substantive due process, and impaired their contracts with tenants.
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