TOOLS FOR TACKLING CORPORATE LANDLORDS

The report argues that state preemption—where state law supersedes local ordinances—is frequently used to block municipal efforts to regulate corporate landlords, particularly private equity firms. It highlights that while 'home-rule' states offer more local autonomy than 'Dillon's rule' states, state governments can still override local housing policies. Using examples from California, Florida, and Illinois, the document demonstrates how preemption limits rent control, eviction protections, and inclusionary zoning, often influenced by corporate lobbying. The authors conclude that housing advocates must focus on state-level legislative changes and coalition building to abrogate these preemptions.

• Private equity firms are identified as a significant threat to housing stability because they prioritize high returns—typically at least 15%—within short timeframes of 3-5 years, leading them to maximize revenue by deferring maintenance and increasing tenant fees.
• State preemption is often driven by corporate lobbying and campaign contributions, allowing institutional investors to operate in residential environments with minimal tenant protections.
• A 2020 Urban Institute report found that 33 states have passed preemption laws blocking local affordable housing policies, most commonly targeting rent regulations and inclusionary zoning.
• In California, the state's suspension of preemption for certain eviction protections during the COVID-19 pandemic allowed over 30 cities and counties to implement local rent freezes and utility shutoff bans, though many were later rolled back due to laws like the Costa-Hawkins Rental Housing Act.
• Florida's legal framework severely limits municipal rent regulation, requiring a 'housing emergency so grave as to constitute a serious menace to the general public' to justify such measures, a process described as too burdensome to be practical.
• The private equity firm Blackstone has been linked to predatory practices in Florida and other states, including initiating evictions and subsequently listing properties at rents 9% to 38% higher.
• Illinois' Rent Control Preemption Act of 1997 has created a 'chilling effect' on city officials, including those in Chicago, preventing the adoption of rent stabilization laws even during the pandemic.

APA

Noble, C., & Bankson, M. (n.d.). TOOLS FOR TACKLING CORPORATE LANDLORDS. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2023/06/State-Preemption-Report_v4.pdf

Chicago

Noble, Chris, and Madeline Bankson. TOOLS FOR TACKLING CORPORATE LANDLORDS. Private Equity Stakeholder Project, n.d. https://pestakeholder.org/wp-content/uploads/2023/06/State-Preemption-Report_v4.pdf.

Wikipedia

{{cite report |last1=Noble |first1=Chris |last2=Bankson |first2=Madeline |title=TOOLS FOR TACKLING CORPORATE LANDLORDS |publisher=Private Equity Stakeholder Project |url=https://pestakeholder.org/wp-content/uploads/2023/06/State-Preemption-Report_v4.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{noblendtools, author = {Noble, Chris and Bankson, Madeline}, title = {{TOOLS FOR TACKLING CORPORATE LANDLORDS}}, institution = {Private Equity Stakeholder Project}, url = {https://pestakeholder.org/wp-content/uploads/2023/06/State-Preemption-Report_v4.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }