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US Supreme Court Refuses to Hear Harmon Case!

 

STATEMENT from the REAL RENT REFORM CAMPAIGN
on the SUPREME COURT'S REJECTION of
HARMON v. KIMMEL

FOR IMMEDIATE RELEASE: April 23, 2012
CONTACT: Doug Forand, 917-733-2763, dougforand@gmail.com




We welcome today's decision by the U.S. Supreme Court not to review the Harmon v Kimmel case. 

From the beginning, this misguided case was based in a flawed legal interpretation of the Constitution, yet still represented a very real threat to New York's ability to continue to maintain viable working and middle class housing in a city often defined by wealth. 

Millions of New Yorkers depend on rent regulation for dependable, affordable housing, and the city depends on rent regulation to maintain stable neighborhoods and strong communities.  Rent regulated New Yorkers have a median income of just $37,000, and a court-ordered elimination of rent regulations would have immediately placed their ability to stay in the homes in danger.

Further, the Harmons' attempt to upend rent regulations would have set a dangerous precedent for all housing regulations, such as zoning, fire codes and more.  This decision properly respects the right of elected legislators to make such decisions.

For more background information about the Harmon case, please click here.


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For a historical legal analysis of the Supreme Court's refusal to hear the case, written by Tim Collins, former Executive Director of the Rent Guidelines Board, click here. 

For some newspaper coverage
see the NY Times (below), the NY Observer,  Bloomberg News (excerpted at the bottom) and Reuters.

Supreme Court Declines to Hear Rent-Control Challenge



WASHINGTON – The Supreme Court on Monday refused to hear a challenge to the constitutionality of New York City’s rent regulations. As is customary, the court’s order gave no reasons, and there were no noted dissents.
The case was brought by James D. Harmon Jr. and Jeanne Harmon, the owners of a five-story brownstone on West 76th Street near Central Park. They live on the lower floors and rent out six apartments, two to a floor, above them.
Three of the apartments are subject to New York’s rent-stabilization regulations, meaning that the government sets the maximum permissible rent increases and generally allows tenants to renew their leases indefinitely. The Harmons say the rent-stabilized tenants pay rents about 60 percent below the market rate.
The Harmons said that forcing them to accept below-market rents amounted to an unconstitutional taking of their property. The regulations subjected them, they told the Supreme Court, to the “unconstitutional burden of involuntarily and permanently renting a part of their residence to tenant-strangers whom the Harmons must subsidize for the rest of their lives.”
The Takings Clause of the Fifth Amendment says that private property shall not “be taken for public use, without just compensation.” The Supreme Court has said that government regulation of private property can be “so onerous that its effect is tantamount to a direct appropriation or ouster.”
But the court has upheld rent regulations, most recently in a unanimous ruling in a 1992 case concerning a mobile-home park in Escondido, Calif. The justices reasoned that regulation of the terms of a lease did not amount to the sort of complete government takeover of property that is barred by the takings clause.

Last year, the United States Court of Appeals for the Second Circuit, in New York, ruled against the Harmons. In an unsigned summary order, a three-judge panel of the appeals court said the couple knew what they were getting into when they acquired the building.
The panel added that the couple retained important rights under the regulations: they could in some circumstances reclaim the apartments for their own use; they could demolish the building so long as they did not replace it with housing; and they could “evict an unsatisfactory tenant.”
All of that meant, the panel said, that the city’s regulations did not amount to “permanent physical occupation of the Harmons’ property.”
New York City’s rent regulations cover almost half of the city’s roughly 2.2 million rental housing units. (Another million units are occupied by their owners.)
Last month, Mayor Michael R. Bloomberg signed a bill extending the regulations for another three years by re-declaring a state of housing emergency. The emergency has been in effect for more than 40 years.
In urging the justices not to hear the case, Harmon v. Kimmel, No. 11-496, state and city officials defended the rent regulations as a necessary response to a housing shortage and as a way to prevent “rent profiteering.”

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The median household income for those in the 970,000 rent- stabilized households last year was $37,000, according to the city’s most recent housing and vacancy survey, released in February. Four percent of households in rent-stabilized units had incomes of $150,000 or more in 2010, according to the U.S. Census Bureau.