Monroe’s Rental Property Restrictions Unconstitutional, Says Lawsuit

ORANGE COUNTY, NY – The Town of Monroe is facing a potential jury trial in response to a law filed earlier this year preventing any person or entity in the town from owning more than three rental properties.

The Times Herald-Record (bit.ly/3OmmJnZ) reported that an unnamed number of limited liability corporations that own more than 20 rental properties in Monroe sued the town on July 7th in U.S. District Court for the southern District of New York.

Only one person, Pamela Lee, was identified as a member of those corporations in the lawsuit, which accuses Monroe of multiple constitutional violations in amendments that were made to the town code on February 6th.

In addition to the three rental property limit, new additions made to Part II, Section 40 of the town code also banned more than two people from occupying a single bedroom and made it unlawful for the number of vehicles parked to exceed the number of on-site bedrooms.

Describing the new law as “arbitrary and capricious,” the lawsuit charges the town with not providing a fair way of contesting the new statute, a violation of the Constitution’s 14th Amendment, which prohibits depriving anyone of their fundamental property rights without providing them with an opportunity for due process.

The complaint accuses the town of violating the Fifth Amendment and the Constitution’s contracts clause, because the plaintiffs already had existing contracts with tenants at more than three properties at the time the law was passed.

It also categorizes limiting the number of people in a bedroom to two as a violation of the Fair Housing Act.

The plaintiffs have asked the court to declare the law unconstitutional and in violation of the Constitution’s Fifth and 14th amendments, and to ban the town and its agents from enforcing the law. Additionally, they are looking for just compensation to be determined at a jury trial of at least $7.26 million, as well as punitive damages, legal fees and any other relief deemed appropriate by the court.

Town of Monroe Supervisor Anthony Cardone did not immediately respond to a request for comment on the matter.