Landlord-Tenant—Rent Stabilization—Second Circuit Affirmed Constitutionality of New York's Rent Stabilization Law (RSL) and Housing Stability and Tenant Protection Act of 2019—Court Rejected Plaintiffs' Facial Claims That the Statute Constituted an Unconstitutional Physical and Regulatory Taking—"No Party Doing Business In a Regulated Environment Like the New York City Rental Market Can Expect the RSL To Remain Static"—It is "Virtually Certain That No Interested Party Will Be Entirely Satisfied By What the Legislature Does"—Sovereign Immunity

This decision involved the validity of the Housing Stability and Tenant Protection Act of 2019 (HSTPA) which amended the Rent Stabilization Law (RSL). The appellants (landlords) are individual property owners and trade associations. They had sued to "invalidate the RSL and the HSTPA on the grounds that their provisions are unconstitutional because they, facially, effect a physical as well as a regulatory taking and violation of the Fifth Amendment."

They further asserted that the RSL and New York City's 2018 Emergency Declaration "triggering rent stabilization are irrational in violation of the Substantive Due Process Clause of the Fourteenth Amendment." The trial court held that the RSL was constitutional and dismissed the complaint. The U.S Court of Appeals for the Second Circuit (court) affirmed.