Since I think everyone at Hit and Run is all Keloed out, figure I’ll post this here: My understanding of the way rent control laws work, at least in some cities, is that older buildings will be price-capped at lower rates tied to some function of their monthly rent in the past, while newer buildings have more freedom to charge higher rents. If I’ve got that right, then a new apartment building precisely identical to some older one on the same plot of land should be able to charge higher rents and—here’s the key part—generate more tax revenue. Under Kelo then, we’ve got a really inefficient way around rent control laws: Just seize the building, knock it down, and stick a newer apartment building up on the same lot.
Kelo vs. Rent Control
July 3rd, 2005 · 5 Comments