Posted on 08/10/2021 5:15:34 AM PDT by BenLurkin
One of the region’s most prolific apartment builders has sued the city of Los Angeles over its COVID-19 eviction moratorium, saying his companies have experienced “astronomical” financial losses and are legally entitled to compensation from the city.
Palmer’s companies allege that the moratorium...violated the “takings clause” established in the 5th Amendment, which says private property shall not be taken for public use without “just compensation.” “While the eviction moratorium ostensibly protects tenants who are unable to pay rent due to circumstances related to the COVID-19 pandemic, it arbitrarily shifts the financial burden onto property owners, many of whom were already suffering financial hardship as a result of the pandemic and have no equivalent remedy at law,”
Tracy Jeanne Rosenthal, a member of the Los Angeles Tenants Union, said “I am not at all convinced that his right to profit by means of passive income should take precedence over the very lives of tenants in Los Angeles whose incomes were severed by the pandemic and by public health orders that directed them to isolate and quarantine.”
Palmer’s companies did not respond to The Times’ inquiries. In their lawsuit against the city, they said the eviction moratorium had led to rent losses of more than $2.7 million at Palmer’s Medici project in downtown Los Angeles; nearly $2.8 million at the Da Vinci, a 526-unit complex along the 101/110 Freeway interchange; and nearly $3.9 million at Summit at Warner Center, an apartment property in Woodland Hills.
Because of the city’s ordinance, lenders have refused to refinance loans on properties managed by GHP, causing additional economic harm, the lawsuit said.
(Excerpt) Read more at latimes.com ...
About time someone attacks this nonsense
It’s a slam dunk in normal courts .
We don’t have normal courts
It should be a nation-wide class action suit.
“Regulatory taking”
https://en.wikipedia.org/wiki/Regulatory_takings_in_the_United_States
I don’t like their chances.
Judge will just say but they are just following CDC rules.
However, this is a case where the government intervened and made it impossible for your business to succeed. Should be an interesting case.
Of course the back rent will never be repaid. I even heard about one renter who had stopped paying rent and was subletting his apartment to someone else, collecting rent for himself.
It's as if Marx is speaking from Hell
bttt
Exactly. Good to see Landlords fighting back.
To the Left, Landlords are like “The Rich”. To the Leftists, Landlords are evil, and can be targeted for any tax or unconstitutional government action.
And then they will cry for government action when there is a shortage of housing because people decide there is no reason to be a landlord when all you are is a pit of money to be robbed from at best, or a political whipping boy to be used as a tool at worst.
Then you get large, ugly projects built by Leftists.
Astonishing but not surprising.
If I run a filthy restaurant, the government shouldn’t have to pay me for shutting me down.
If I rent out lawful apartments, if the government wants me to provide housing to deadbeat tenants, it should pay me.
“Over 15.9 million people have moved during the coronavirus, according to USPS data.”
https://www.mymove.com/moving/covid-19/coronavirus-moving-trends/
On a side note:
https://time.com/5893881/exclusive-as-states-prepared-mail-in-ballots-postal-service-failed-to-update-at-least-1-8-million-addresses/
“profit by means of passive income “
So she wants to away with Social Security, welfare, all pension plans, etc,etec?
I was thinking the other day about the real estate deals which came from the mysterious market crash of 2008.
$550B was pulled out of the market in one day and we still don’t know who did it.
Real estate in Phoenix was a steal.
Perhaps that was the goal the entire time.
The “moratorium” is illegal, wrong and unconstitutional. Anyone who imposed it is guilty of a crime (there are no exceptions to that).
The tenants have no right to live on the assets of others. No pay, no live.
There is no God given right to occupy the apartment and not pay the rent. Can’t pay, move out of the city to where you can earn and pay
Hey, I’m sure Biden’s buddies at Blackrock would be glad to pay you 15 cents on the dollar for your distressed property.
They will find some lib judge to throw out the suit ...................
Your honor, I would like the court to know that a person is more likely to die from homelessness than Covid....
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