The New York City Council’s Newest COVID-19 Rent and Judgment Relief Proposal Likely Violates the Takings Clause
In addition to the profound negative economic consequences that the Bill would have, the Bill likely runs afoul of the U.S. Constitution’s Takings Clause because it creates government-coerced tenancies without just compensation to property owners.
The legislation amends the Social Services Law to raise the legal standard for determining that someone maltreated a child, shortens the length of time before records of neglect are sealed, and provides additional protections for accused parents before employers can access records.
Local government in New York City has adopted recent legislation adversely impacting commercial landlords by abolishing personal guarantees that were used at lease inception, to induce those landlords to enter into those leases. Based upon longstanding legal precedent, this legislation could be found to be facially invalid on constitutional grounds.
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