The property management software company RealPage Inc. has filed a lawsuit against New York State Attorney General Letitia James that seeks to overturn a new state law that bans property owners and managers from using algorithm rent-setting tools.
The Richardson, Texas-based company argues the new law (S7882/A1417) represents a challenge to free speech and repeats false claims regarding its revenue management software. Gov. Kathy Hochul signed the legislation into law last month, and it is slated to go into effect on Dec. 15.
“The multifamily industry deserves tools that support responsible operations, informed decisions, and better outcomes for residents,” said Dirk Wakeham, RealPage president and CEO. “This law denies housing providers access to lawful analysis and information that helps them meet the needs of their communities.”
Theodore J. Boutrous Jr., a partner at Gibson, Dunn & Crutcher LLP and counsel for RealPage, added, “This misguided effort to manage rental prices tramples on RealPage’s First Amendment right to offer advice and recommendations. New York legislators should propose real solutions to housing affordability issues instead of banning constitutionally protected speech.”
James’ office did not immediately comment on the lawsuit, which follows yesterday’s settlement between RealPage and the US Department of Justice that resolved charges that the company’s revenue management product was improperly used by multifamily property owners to collude in rent fixing schemes.
