Community Housing Improvement Program et al v. City of New York et al

MEMORANDUM in Support re [53] MOTION to Dismiss for Failure to State a Claim filed by RuthAnne Visnauskas.

Eastern District of New York, nyed-1:2019-cv-04087

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8 PageID #: 319 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK COMMUNITY HOUSING IMPROVEMENT PROGRAM, RENT STABILIZATION ASSOCIATION OF N.Y.C., INC., CONSTANCE NUGENT-MILLER, MYCAK ASSOCIATES 19-cv-04087 (MKB) LLC, VERMYCK LLC, M&G MYCAK LLC, CINDY REALTY LLC, DANIELLE REALTY LLC, FOREST REALTY, LLC, Plaintiffs, v. CITY OF NEW YORK, RENT GUIDELINES BOARD, DAVID REISS, CECILIA JOZA, ALEX SCHWARZ, GERMAN TEJEDA, MAY YU, PATTI STONE, J. SCOTT WALSH, LEAH GOODRIDGE, AND SHEILA GARCIA, IN THEIR OFFICIAL CAPACITIES AS CHAIR AND MEMBERS, RESPECTIVELY, OF THE RENT GUIDELINES BOARD, AND RUTHANNE VISNAUSKAS, IN HER OFFICIAL CAPACITY AS COMMISSIONER OF NEW YORK STATE HOMES AND COMMUNITY RENEWAL, DIVISION OF HOUSING AND COMMUNITY RENEWAL, Defendants. MEMORANDUM OF LAW IN SUPPORT OF COMMISSIONER RUTHANNE VISNAUSKAS'S MOTION TO DISMISS THE COMPLAINT LETITIA JAMES Attorney General State of New York Attorney for Commissioner Visnauskas 28 Liberty Street New York, New York 10005 (212) 416-8651 MICHAEL A. BERG JONATHAN D. CONLEY Assistant Attorneys General Of Counsel 8 PageID #: 320 TABLE OF CONTENTS Page TABLE OF AUTHORITIES .......................................................................................................... ii Preliminary Statement ..................................................................................................................... 1 Statement of Facts ........................................................................................................................... 3 A. Overview of the RSL........................................................................................................ 3 B. The History of New York's Rent-Stabilization Laws....................................................... 6 C. Emergency Tenant Protection Act of 1974 ..................................................................... 7 D. The Introduction of Luxury and High-Income Decontrol .............................................. 8 E. The 2019 Amendments .................................................................................................... 9 F. New York City's Housing Emergency ........................................................................... 11 LEGAL STANDARDS ................................................................................................................ 12 ARGUMENT ................................................................................................................................ 13 I. Plaintiffs Cannot State A Plausible Claim For A Physical Or Regulatory Taking Of Their Property...................................................................................... 13 A. The Limited Scope Of The Takings Clause ................................................... 13 B. The RSL Does Not Cause A Physical Taking of Property ............................ 16 C. The RSL Does Not Effect a Regulatory Taking of Property ......................... 20 II. Plaintiffs' Due Process Claim Fails As A Matter Of Law .................................... 24 III. Most Of Plaintiffs' Claims Are Time-Barred ....................................................... 28 CONCLUSION ............................................................................................................................. 29 8 PageID #: 321 TABLE OF AUTHORITIES Cases Page(s) 1256 Hertel Ave. Assocs., LLC v. Calloway, 761 F.3d 252 (2d Cir. 2014)...............................................................................................13, 14 2910 Georgia Ave. LLC v. D.C., 234 F. Supp. 3d 281 (D.D.C. 2017) .........................................................................................28 Agins v. City of Tiburon, 447 U.S. 255 (1980) .................................................................................................................23 Annis v. Cnty. of Westchester, 136 F.3d 239 (2d Cir. 1998).....................................................................................................11 Appolo Fuels, Inc. v. United States, 381 F.3d 1338 (Fed. Cir. 2004)................................................................................................22 Ashcroft v. Iqbal, 556 U.S. 662 (2009) .................................................................................................................11 Beatie v. City of N.Y., 123 F.3d 707 (2d Cir. 1997).....................................................................................................25 Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) .................................................................................................................12 Bowers v. Whitman, 671 F.3d 905 (9th Cir. 2012) ...................................................................................................26 Buffalo Teachers Federation v. Tobe, 464 F.3d 362 (2d Cir. 2006).....................................................................................................13 Canadian St. Regis Band of Mohawk Indians v. New York, Nos. 5:82-CV-0783, 5:82-CV-1114, 5:89-cv-0829, 2013 WL 3992830 (N.D.N.Y. July 23, 2013) ...........................................................................................................3 CCA Associates v. United States, 667 F.3d 1239 (Fed. Cir. 2011)................................................................................................25 Cnty. of Sacramento v. Lewis, 523 U.S. 833 (1998) .................................................................................................................24 Concrete Pipe & Prods. of Cal., Inc. v. Constr. Laborers Pension Trust for S. Cal., 508 U.S. 602 (1993) .....................................................................................................22, 23, 27 ii 8 PageID #: 322 Congregation Rabbinical Coll. of Tartikov, Inc. v. Vill. of Pomona, 915 F. Supp. 2d 574 (S.D.N.Y. 2013)......................................................................................15 Cranley v. Nat'l Life Ins. Co. of Vt., 318 F.3d 105 (2d Cir. 2003).....................................................................................................20 Dolan v. City of Tigard, 512 U.S. 374 (1994) .................................................................................................................19 Duke Power Co. v. Carolina Environmental Study Group, Inc., 438 U.S. 59 (1978) ...................................................................................................................25 Eagleston v. Guido, 41 F.3d 865 (2d Cir. 1994).......................................................................................................12 Eberhart v. Crozier, 423 F. App'x 57 (2d Cir. 2011) ...............................................................................................12 EklecCo NewCo LLC v. Town of Clarkstown, No. 16-CV-6492 (NSR), 2018 WL 3023159 (S.D.N.Y. Jun. 18, 2018)..................................28 Fed. Home Loan Mortg. Corp. v. N.Y. State Div. of Hous. & Cmty. Renewal, 87 N.Y.2d 325 (1995) ...................................................................................................... passim Fed. Home Loan Mtge. Corp. v. N.Y.S. Div. of Hous. & Cmty. Renewal, 83 F.3d 45 (2d Cir. 1996).......................................................................................17, 19, 20, 21 General Elec. Co. v. N.Y.S. Dep't of Labor, 936 F.2d 1448 (2d Cir. 1991)...................................................................................................15 Greenburgh Eleven Union Free Sch. Dist. v. Thompson, No. 18 CV 67 (VB), 2018 WL 6830865 (S.D.N.Y. Dec. 28, 2018) ..................................................3 Greystone Hotel Co. v. City of N.Y., 13 F. Supp. 2d 524 (S.D.N.Y. 1998)........................................................................................26 Harmon v. Markus, 412 F. App'x 420 (2d Cir. 2011) .......................................................................................16, 20 In re Chateaugay Corp., 53 F.3d 478 (2d Cir. 1995)...........................................................................................22, 24, 25 Jado Assocs., LLC v. Suffolk Cty. Sewer Dist. No. 4-Smithtown Galleria, No. 12 Civ. 3011 (DRH) (ARL), 2014 WL 2944086 (E.D.N.Y. June 30, 2014) ....................15 Keystone Bituminous Coal Ass'n v. DeBenedictis, 480 U.S. 470 (1987) .................................................................................................................20 iii 8 PageID #: 323 Kittay v. Giuliani, 252 F.3d 645 (2d Cir. 2001) (per curiam) ................................................................................20 Knick v. Twp. of Scott, Pa., 139 S. Ct. 2162 (2019) .............................................................................................................11 Kraebel v. N.Y. City Dep't of Hous. Pres. & Dev., 959 F.2d 395 (2d Cir. 1992).....................................................................................................26 KSLM-Columbus Apartments, Inc. v. N.Y. State Div. of Hous. & Cmty. Renewal, 6 A.D.3d 28 (1st Dep't 2004), mod. on other grounds, 5 N.Y.3d 303 (2005) ..........................6 La Guardia v. Cavanaugh, 53 N.Y.2d 67 (1981) ..............................................................................................................5, 6 Lingle v. Chevron U.S.A. Inc., 544 U.S. 528 (2005) ......................................................................................................... passim Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419 (1982) ...............................................................................................12, 15, 17, 18 Lucas v. S.C. Coastal Council, 505 U.S. 1003 (1992) ...............................................................................................................14 Molinari v. Bloomberg, 596 F. Supp. 2d 546 (E.D.N.Y.), aff'd, 564 F.3d 587 (2d Cir. 2009) ......................................24 Monaghan v. Henry Phipps Plaza W., Inc., 531 F. App'x 127 (2d Cir. 2013) .............................................................................................21 Nollan v. Cal. Coastal Comm'n, 483 U.S. 825 (1987) .................................................................................................................19 Palazzolo v. Rhode Island, 533 U.S. 606 (2001) .................................................................................................................14 Penn Central Transp. Co. v. New York City, 438 U.S. 104 (1978) .................................................................................................................15 Pennell v. City of San Jose, 485 U.S. 1 (1988) .....................................................................................................................25 Pension Benefit Guarantee Corp. v. R.A. Gray & Co., 467 U.S. 717 (1984) .................................................................................................................24 Quartararo v. Catterson, 917 F. Supp. 919 (E.D.N.Y. 1996) ..........................................................................................12 iv 8 PageID #: 324 Quinn v. Bd. of Cty. Commissioners for Queen Anne's Cty., Maryland, 862 F.3d 433 (4th Cir. 2017) ...................................................................................................28 Ramsey Winch, Inc. v. Henry, 555 F.3d 1199 (10th Cir. 2009) ...............................................................................................28 Rancho de Calistoga v. City of Calistoga, 800 F.3d 1083 (9th Cir. 2015) .................................................................................................22 Rent Stabilization Ass'n of City of N.Y. v. Dinkins, 5 F.3d 591 (2d Cir. 1993)................................................................................................. passim Rent Stabilization Ass'n of N.Y.C., Inc. v. Dinkins, 805 F. Supp. 159 (S.D.N.Y. 1992), aff'd., 5 F.3d