pennell san jose argued november decided february san jose rent control ordinance ordinance landlord may automatically raise annual rent tenant possession much eight percent tenant objects higher increase hearing required determine whether landlord proposed increase reasonable circumstances hearing officer directed consider specified factors including hardship tenant appellants individual landlord apartment house owners association association represents owners lessors real property located san jose filed action seeking declaration ordinance particularly tenant hardship provision facially invalid federal constitution entered judgment pleadings appellants favor california appeal affirmed however california reversed rejecting appellants arguments takings clause fifth amendment equal protection due process clauses fourteenth amendment held appellants standing challenge ordinance constitutionality even though allege either individual appellant appellant association members hardship tenants might trigger ordinance hearing process aggrieved hearing officer determination certain proposed rent increase unreasonable ground tenant hardship standing challenged basis pleadings material allegations complaint must taken true complaint must construed favor complaining party appellants alleged properties subject ordinance stated oral argument association represents residential unit owners city many hardship tenants thus likelihood enforcement ordinance concomitant probability rent reduced landlord otherwise able obtain sufficient threat actual injury satisfy art iii requirement plaintiff challenges law must demonstrate realistic danger sustaining direct injury result law operation enforcement pp appellants contention application ordinance tenant hardship provision violates takings clause since reducing tenant hardship otherwise reasonable rent objective factors specified ordinance relating landlord costs rental market condition accomplishes taking transfer landlord property individual hardship tenants premature evidence tenant hardship provision fact ever relied upon hearing officer reduce rent figure set basis specified factors addition ordinance require hearing officer fact reduce proposed rent increase grounds tenant hardship makes mandatory tenant hardship considered takings cases constitutionality laws decided except actual factual setting makes decision necessary pp mere provision ordinance hearing officer may consider tenant hardship finally fixing reasonable rent render ordinance facially invalid due process clause ordinance purpose preventing unreasonable rent increases caused city housing shortage legitimate exercise appellees police powers moreover merit appellants argument arbitrary discriminatory demonstrably irrelevant appellees attempt accomplish additional goal reducing burden housing costs tenants requiring hardship tenant considered determining amount excess rent increase reasonable circumstances protection consumer welfare legitimate rational goal price rate regulation ordinance scheme represents rational attempt accommodate conflicting interests protecting tenants rent increases time ensuring landlords guaranteed fair return investment pp ordinance face violate equal protection clause classification scheme rationally related legitimate purpose protecting tenants irrational ordinance treat landlords differently basis whether hardship tenants pp rehnquist delivered opinion brennan white marshall blackmun stevens joined scalia joined scalia filed opinion concurring part dissenting part joined post kennedy took part consideration decision case harry miller argued cause appellants briefs burch fitzpatrick gary rosenberg joan gallo argued cause appellees brief george rios briefs amici curiae urging reversal filed california association realtors william pfeiffer national apartment association et al jon smock wilbur haines iii jeffrey gale national association realtors william north national multi housing council lawrence simons michael fine rent stabilization association new york city et al erwin griswold washington legal foundation daniel popeo paul kamenar todd natkin briefs amici curiae urging affirmance filed american civil liberties union et al john powell steven shapiro helen hershkoff paul hoffman mark rosenbaum american federation labor congress industrial organizations robert weinberg laurence gold asian law alliance et al brenton rogozen center constitutional rights frank deale national housing law project david bryson national institute municipal law officers william thornton roger cutler roy bates william taube conference mayors et al benna ruth solomon bartow farr iii briefs amici curiae filed city santa monica et al joseph lawrence karl manheim joel levy hadassa gilbert manuela albuquerque raymond ott mary jo levinger marc hynes jayne williams duane lyders louise renne roger picquet steven amerikaner mark sellers john powers competitive enterprise institute sam kazman national association home builders et al gus bauman chief justice rehnquist delivered opinion case involves challenge rent control ordinance enacted city san jose california allows hearing officer consider among factors hardship tenant determining whether approve rent increase proposed landlord appellants richard pennell apartment house owners association sued superior santa clara county seeking declaration ordinance particular tenant hardship provisions facially unconstitutional therefore illegal void superior entered judgment pleadings favor appellants sustaining claim tenant hardship provisions violated takings clause fifth amendment made applicable fourteenth amendment california appeal affirmed judgment cal app cal rptr california reversed cal divided vote majority rejected appellants arguments takings clause equal protection due process clauses fourteenth amendment dissenters thought tenant hardship provisions forced subsidy imposed landlord violation takings clause appellants appeal postponed consideration question jurisdiction heard oral argument affirm judgment california city san jose enacted rent control ordinance ordinance stated purpose alleviat ing immediate needs created san jose housing situation needs include limited prevention excessive unreasonable rent increases alleviation undue hardships upon individual tenants assurance landlords fair reasonable return value property san jose municipal ordinance hardship tenants case rent increase portion thereof exceeds standard set section respect excess whether allow part increase allowed chapter hearing officer shall consider economic financial hardship imposed present tenant tenants unit units increases apply balance hearing officer determines proposed increase constitutes unreasonably severe financial economic hardship particular tenant may order excess increase subject consideration subparagraph section portion thereof disallowed tenant whose household income monthly housing expense meets certain income requirements shall deemed suffering financial economic hardship must weighed hearing officer determination burden proof establishing economic hardship shall tenant turn merits appellants contentions consider claim appellees appellants lack standing challenge constitutionality ordinance original complaint action appellant richard pennell owner lessor rental units city san jose appellant apartment house owners association association said unincorporated association organized purpose representing interests owners lessors real property located city san jose app complaint also real property owned appellants subject terms ordinance appellees point time appellants allege either pennell member association hardship tenants might trigger ordinance hearing process specifically allege aggrieved determination hearing officer certain proposed rent increase unreasonable ground tenant hardship appellees put point time speculative whether association members injured fact ordinance tenant hardship provisions thus appellees contend appellants lack standing either test individual standing see valley forge christian college americans separation church state individual standing requires actual injury redressable test associational standing see hunt washington apple advertising association standing behalf members members otherwise standing sue right must keep mind however application constitutional standing requirement mechanical exercise allen wright standing challenged basis pleadings accept true material allegations complaint construe complaint favor complaining party warth seldin see also gladstone realtors village bellwood appellants specifically alleged complaint appellants properties subject terms ordinance stated oral argument association represents residential unit owners city many hardship tenants tr oral arg see also reply brief appellants accepting truth statements appellees contest unadorned speculation simon eastern kentucky welfare rights organization conclude ordinance enforced members association likelihood enforcement concomitant probability landlord rent reduced otherwise able obtain absence ordinance sufficient threat actual injury satisfy art iii requirement plaintiff challenges statute must demonstrate realistic danger sustaining direct injury result statute operation enforcement babbitt farm workers said recognize record case leaves much desired terms specificity purposes determining standing appellants challenge ordinance undoubtedly least part reflection fact case originated state art iii proscription advisory opinions may apply strongly suggest future cases parties litigating circumstances similar take pains supplement record manner necessary enable us address much precision possible question standing may raised turning merits first address appellants contention application ordinance tenant hardship provisions violates fifth fourteenth amendments prohibition taking private property public use without compensation essence appellants claim follows ordinance establishes seven factors hearing officer take account determining reasonable rent increase first six factors objective related either landlord costs providing adequate rental unit condition rental market application six standards results rent reasonable reference appellants contend legitimate purpose rent control elimination excessive rents caused san jose housing shortage hearing officer takes account hardship tenant pursuant reduces rent objectively reasonable amount established first six factors additional reduction rent increase constitutes taking taking impermissible serve purpose eliminating excessive rents objective already accomplished considering first six factors instead serves purpose providing assistance hardship tenants short appellants contend additional reduction rent grounds hardship accomplishes transfer landlord property individual hardship tenants ordinance forces private individuals shoulder public burden subsidizing poor tenants housing appellants point axiomatic fifth amendment compensation provision designed bar government forcing people alone bear public burdens fairness justice borne public whole first english evangelical lutheran church glendale county los angeles quoting armstrong think premature consider contention present record things stand simply evidence tenant hardship clause fact ever relied upon hearing officer reduce rent figure set basis factors set forth ordinance addition nothing ordinance requiring hearing officer fact reduce proposed rent increase grounds tenant hardship section make mandatory hardship considered hearing officer shall consider economic hardship imposed present tenant goes state proposed increase constitutes unreasonably severe financial economic hardship may order excess increase disallowed emphasis added given essentially ad hoc factual inquir involved takings analysis kaiser aetna found particularly important takings cases adhere admonition constitutionality statutes decided except actual factual setting makes decision necessary hodel virginia surface mining reclamation virginia surface mining example found challenge surface mining control reclamation act stat et premature ripe judicial resolution property owners case identified property allegedly taken act sought administrative relief act restrictions surface mining similarly case find mere fact hearing officer enjoined consider hardship tenant fixing landlord rent without showing particular case consequences injunction ultimate determination rent present sufficiently concrete factual setting adjudication takings claim appellants raise cf cio mcadory declining consider validity state statute record show statute ever applied petitioner members appellants also urge mere provision ordinance hearing officer may consider hardship tenant finally fixing reasonable rent renders ordinance facially invalid due process equal protection clauses even though landlord ever rent diminished much one dollar application provision standard determining whether state regulation constitutional due process clause well established price control unconstitutional arbitrary discriminatory demonstrably irrelevant policy legislature free adopt permian basin area rate cases quoting nebbia new york contexts recognized government may intervene marketplace regulate rates prices artificially inflated result existence monopoly near monopoly see fcc florida power approving limits rates charged cable companies access telephone poles fpc texaco recognizing federal regulation natural gas market response threat monopoly pricing discrepancy supply demand market certain product see nebbia new york supra allowing minimum price milk offset flood surplus milk accordingly appellants dispute ordinance asserted purpose prevent ing excessive unreasonable rent increases caused growing shortage increasing demand housing city san jose legitimate exercise appellees police powers cf block hirsh approving rent control washington basis congress finding housing city monopolized argue however arbitrary discriminatory demonstrably irrelevant permian basin area rate cases supra appellees attempt accomplish additional goal reducing burden housing costs tenants requiring hardship tenant considered determining amount excess rent increase reasonable circumstances pursuant appellants put objective alleviating individual tenant hardship policy legislature free adopt rent control ordinance reply brief appellants reject contention however long recognized legitimate rational goal price rate regulation protection consumer welfare see permian basin area rate cases supra fpc hope natural gas primary aim natural gas act protect consumers exploitation hands natural gas companies indeed primary purpose rent control protection tenants see bowles willingham one purpose rent control protect persons relatively fixed limited incomes consumers wage earners undue impairment standard living ordinance establishes scheme hearing officer considers number factors determining reasonableness proposed rent increase exceeds eight percent exceeds amount deemed reasonable either first six factors focus individual landlord hearing officer examines history premises landlord costs market comparable housing section also allows landlord bring forth financial evidence including presumably evidence regarding financial status taken account hearing officer context ordinance allows tenant hardship considered balance factors set within scheme represents rational attempt accommodate conflicting interests protecting tenants rent increases time ensuring landlords guaranteed fair return investment cf bowles willingham supra considering rejecting contention rent control must established landlord landlord fashion utility rates accordingly find ordinance carefully considers individual circumstances landlord tenant determining whether allow additional increase rent certain amounts deemed reasonable face violate fourteenth amendment due process clause also find ordinance violate amendment equal protection clause standard deferential appellees need show classification scheme embodied ordinance rationally related legitimate state interest new orleans dukes stated vance bradley overturn statute burden suspect class fundamental interest unless varying treatment different groups persons unrelated achievement combination legitimate purposes conclude legislature actions irrational light conclusion ordinance tenant hardship provisions designed serve legitimate purpose protecting tenants hardly conclude irrational ordinance treat certain landlords differently basis whether hardship tenants ordinance distinguishes landlords furthers purpose ensuring individual tenants suffer unreasonable hardship inconsistent state hardship legitimate factor considered hold appellees tailor ordinance legitimate hardship cases redressed cf woods cloyd miller congress need control rents none select areas classes property need seems greatest recognize appellants point general difficult say landlord causes tenant hardship beside point landlord hardship tenant regardless reason rational appellees take fact consideration ordinance establishing rent reasonable circumstances foregoing reasons hold premature consider appellants claim takings clause reject facial challenge ordinance due process equal protection clauses fourteenth amendment judgment california accordingly affirmed footnotes ordinance apply rent rent increases new rental units first rented ordinance takes effect rental unit voluntarily vacated rental unit vacant result eviction certain specified acts cases also impose two additional requirements associational representational standing interests organization seeks protect must germane organization purpose hunt neither claim asserted relief requested requires participation individual members lawsuit ibid see also automobile workers brock requirements satisfied association organized purpose representing interests owners lessors real property san jose lawsuit app facial challenge association makes ordinance require participation individual landlords appellees also argue pennell lacks standing individually early sold properties owned time complaint action filed see brief appellees declaration submitted pennell admits sold properties recently repurchased owns one apartment buildings san jose formerly owned declaration richard pennell property still subject ordinance conclude association standing therefore jurisdiction appeal find unnecessary decide whether pennell sale repurchase property affects standing reason also decline address appellants contention application reduce otherwise reasonable rent increase basis tenant hardship violates fourteenth amendment due process equal protection requirements see hodel indiana dismissing premature due process challenge civil penalty provision surface mining act appellees made showing ever assessed civil penalties act much less statutory prepayment requirement ever applied caused injury appellants several amici also argue ordinance combination lower rents hardship tenants restrictions landlord power evict tenant amounts physical taking landlord property decline address contention raised first time also premised hearing officer actually granting lower rent hardship tenant appellants claim amici rent control per se taking stated loretto teleprompter manhattan catv consistently affirmed broad power regulate housing conditions general relationship particular without paying compensation economic injuries regulation entails citing inter alia bowles willingham fcc florida power stated statutes regulating economic relations landlords tenants per se takings despite amici urgings see need reconsider constitutionality rent control per se noted see supra extent appellants due process argument based claim ordinance forces landlords subsidize individual tenants claim premature presented facts us consideration tenant hardship also serves additional purpose stated face ordinance reducing costs dislocation might otherwise result landlords charge rents tenants afford particularly housing shortage social costs dislocation tenants severe allowing tenant hardship considered ordinance enables appellees fine tune rent control take account risk particular tenant forced relocate result proposed rent increase justice scalia justice joins concurring part dissenting part agree tenant hardship provision ordinance face violate either due process clause equal protection clause fourteenth amendment disagree however conclusion appellants takings claim premature decide claim merits hold tenant hardship provision ordinance effects taking private property without compensation violation fifth fourteenth amendments appellants contend application tenant hardship provision san jose ordinance effect uncompensated taking private property provision substantially advance legitimate state interests improperly imposes public burden individual landlords understand claim law applicable plaintiffs root branch invalid readily rejected merits merely noting least applications may lawful understand claim possibly avoided considering premature suppose example feature rental ordinance attack provision allowing hearing officer consider race apartment owner deciding whether allow rent increase inconceivable say judicial challenge must await demonstration provision actually applied detriment one plaintiffs difference seems facial challenge rests upon takings clause rather equal protection clause confuses issue relying cases portions cases takings clause challenge law applications took property without compensation rather law application regulating use particular property severely reduced value property constitute taking context suggests generally takings analysis involves essentially ad hoc factual inquir kaiser aetna said much less year ago surprising soon forgotten addressing petitioners claim must disregard posture case comes us district granted summary judgment respondents facial challenge subsidence act explained question whether mere enactment statutes regulations constitutes taking posture case critical recognized important distinction claim mere enactment statute constitutes taking claim particular impact government action specific piece property requires payment compensation point illustrated decision hodel virginia surface mining reclamation rejected preenforcement challenge constitutionality surface mining control reclamation act explained appellees taking claim arose context facial challenge presented concrete controversy concerning either application act particular surface mining operations effect specific parcels land thus issue properly district turn whether mere enactment surface mining act constitutes taking test applied considering facial challenge straightforward statute regulating uses made property effects taking denies owner economically viable use land petitioners thus face uphill battle making facial attack act taking keystone bituminous coal assn debenedictis true facial takings challenge hodel virginia surface mining reclamation supra remarkable point case support position describing holding follows virginia surface mining example found challenge surface mining control reclamation act premature ripe judicial resolution property owners case identified property allegedly taken act sought administrative relief act restrictions surface mining ante thus issue properly district turn whether mere enactment surface mining act constitutes taking sum entirely clear cases facial takings challenge premature even rests upon ground ordinance deprives property owners economically viable use land ground said easier establish attack possible even clear present facial challenge premature rest upon ground even profit consideration context particular application said agins zoning law effects taking ordinance substantially advance legitimate state interests denies owner economically viable use land present challenge former sort appellants contend providing financial assistance impecunious renters state interest legitimately furthered regulating use property knowing nature character particular property question degree economic impairment way assist inquiry factors irrelevent present claim said claim law effects taking authorizing permanent physical invasion property see loretto teleprompter manhattan catv even explicitly overrule cases agins virginia surface mining keystone hold facial challenge lie issue forcefully presented attack still reason present challenge proceed today holding basis equity precedent since san jose ordinance require specification much reduction rent attributable various factors hearing officer allowed take account quite possible none many landlords affected ordinance ever able meet requirement showing particular case consequences hardship factor ultimate determination rent ante reason thus shield alleged constitutional injustice judicial scrutiny therefore consider appellants takings claim merits ii fifth amendment constitution made applicable fourteenth amendment chicago chicago provides private property shall taken public use without compensation repeatedly observed purpose provision bar government forcing people alone bear public burdens fairness justice borne public whole armstrong see also first english evangelical lutheran church glendale los angeles county webb fabulous pharmacies beckwith agins tiburon supra penn central transportation new york city monongahela navigation traditional regulation short totally destroys economic value property violate principle relationship property use restricted regulation social evil regulation seeks remedy since owner use property regulation source social problem said singled unfairly thus common zoning regulations requiring subdividers observe restrictions dedicate certain areas public streets accord constitutional traditions proposed property use otherwise cause excessive congestion relationship popularly thought justify emergency price regulation commodities priced level produces exorbitant returns owners commodities viewed responsible economic hardship occurs whether accurate perception way economy operates least true owners reap unique benefits situation produces economic hardship respect singling relieve may regarded unfair justification might apply rent regulation present case apart single feature attack appellants contest validity rent regulation general acknowledge city may constitutionally set reasonable rent according statutory minimum six factors must considered hearing officer cost debt servicing rental history unit physical condition unit changes housing services financial information provided landlord market value rents similar units san jose municipal ordinance appellants claim reduction rent increase otherwise reasonable rent scheme may consistently constitution based consideration seventh factor hardship tenant defined think right six factors ordinance applied landlord property receiving reasonable return longer regarded cause exorbitantly priced housing longer reaping distinctively high profits housing shortage seventh factor hardship provision invoked meet quite different social problem existence renters poor afford even reasonably priced housing problem caused exploited landlords grocers sell needy renters food department stores sell clothes employers pay wages citizens san jose holding higher paying jobs excluded even neediness renters regarded problem distinctively attributable landlords general remotely attributable particular landlords ordinance singles namely happen hardship tenant present time may happen rent hardship tenant future whose current future affluent tenants may happen decline hardship category traditional manner american government met problem pay reasonable prices privately sold necessities problem caused society large distribution persons funds raised public large taxes either cash welfare payments goods public housing publicly subsidized housing food stamps unless abandon guiding principle takings clause public burdens borne public whole armstrong manner constitution permits fact government acts relationship magically transform general public welfare must supported public mere economic regulation disproportionately burden particular individuals city regulating rents relevant sense preventing rents excessive rather using occasion rent regulation accomplished rest ordinance establish welfare program privately funded landlords happen hardship tenants course economic regulation effects wealth transfer excessive rents forbidden example landlords class become poorer tenants class least incumbent tenants class become richer singling landlords transferors may within traditional constitutional notions fairness plausibly regarded source beneficiary problem connection longer required however end social transformations accomplished regulation great expense democratic process politically attractive feature regulation permits wealth transfers achieved achieved otherwise rather permits achieved budget relative invisibility thus relative immunity normal democratic processes san jose might example accomplished something like result simply raising real estate tax upon rental properties using additional revenues thus acquired pay part rents hardship tenants seems doubtful however whether citizens san jose allow funds municipal treasury wherever derived distributed family four income high year generous maximum necessary qualify automatically hardship tenant rental ordinance voters might well see pressing social priorities course renters acquire spurious regulation groups acquire well door opened unreasonable expect price regulations requiring private businesses give special discounts senior citizens matter affluent students handicapped war veterans subsidies groups may well good idea operation takings clause governmental system required applied general process taxing spending economic effects competing priorities evident fostering intelligent democratic process one happy effects constitutional prescription perhaps accidental perhaps essence however simply unfairness making one citizen pay fashion taxes remedy social problem none creation new jersey said finding unconstitutional scheme displaying among defects vice find dispositive legislative category economically needy senior citizens sound proper sustainable rational classification compelled subsidization landlords tenants happen live apartment building senior citizens improper unconstitutional method solving problem property owners assn north bergen san jose ordinance hardship tenants include though limited whose household income monthly housing expense meets sic criteria assistance existing housing provisions housing community development act ed supp iii department housing urban development currently limits assistance provisions families four san jose area earn less per year memorandum dept housing urban development assistant secretary housing income limits lower income families housing act