Lawrence owns several apartments in a large city. The city just enacted a rent control ordinance limiting the amount of rent that can be charged with apartments. Lawrence heard that Susan, a friend of his, just graduated from law school and passed the bar. Lawrence asks Susan if there is any way he can avoid the rent control measures. What should Susan tell him?
Susan should tell Lawrence that ordinary rent control statutes are generally constitutionally permissible exercises of governmental authority. Decisions of public agencies charged with administering rent control may be deemed unconstitutional, however if they deprive landlords of a fair rate of control. Additionally, rent control laws must possess certain structural features that safeguard against confiscatory results. The Fifth Amendment is violated when a land-use regulation does not substantially advance legitimate state interests.
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