Latest news with #RealPage
Yahoo
2 days ago
- Business
- Yahoo
Democrats prep procedural challenges to GOP's tax-and-spending bill
Senate Democrats are zeroing in on provisions in the GOP's tax-and-spending package they believe violate Senate rules. They'll soon get a chance to convince the chamber's parliamentarian that parts of the bill are ineligible for reconciliation, the process that Republicans want to use to bypass the filibuster. Otherwise, the legislation will need 60 votes. Sen. Chris Van Hollen, D-Md., told Semafor Tuesday that Democrats are weighing a challenge to a proposed tax on remittance payments. And Sen. Ed Markey, D-Mass., said he plans to push back on language that would block states from enforcing artificial intelligence laws. In an interview, Sen. Elizabeth Warren, D-Mass, said the AI provision would 'let RealPage use AI to continue to raise rents on people across the country' and that it would stop states who are moving to stop it. 'This AI provision doesn't have a budget impact. It's a policy bill,' Warren said. Democrats may also challenge restrictions on federal judges' ability to enforce contempt orders, attempts to curtail abortion provider funding, and language scrapping a fee on gun silencers. They'll also target Republicans' argument that extensions of expiring tax cuts don't need to be paid for. The so-called Byrd rule prohibits senators from using reconciliation to pass any provisions that are 'extraneous' to the budget, among other things. That usually rules out new policy prescriptions, though lawmakers in both parties try to find clever ways to squeeze them in; the 2017 tax bill effectively killed Obamacare's individual mandate by zeroing out its tax penalty. Lobbyists argue that the remittance tax, for instance, could be struck down because its effects on the budget are 'incidental' — in other words, not the authors' primary goal. Some are slated to meet with Senate Democratic staff this week to make that point. 'It is pretty clear that the revenue raised is incidental to the people paying the tax — it is in a part of the bill targeting 'illegal immigrants' accessing taxpayer benefits,' said one lobbyist, who was granted anonymity to speak candidly. Eventually, these challenges go to a bipartisan meeting with the parliamentarian dubbed the 'Byrd Bath.' Members of both parties present their cases as to why the language in question does or does not meet the requirements. 'It's a question of the caucus having a discussion about priorities, in terms of what's most important, and what's most vulnerable,' Sen. Sheldon Whitehouse, D-R.I., told Semafor. 'There will be some early indications out of the privileged scrub that's undergoing, essentially, now.' Republicans are already bracing for losses, including on artificial intelligence. 'I'm not confident [it stays], but I hope it does. But I'm not confident that it will,' Sen. Mike Rounds, R-S.D., said. 'Because it has to be focused on budget and not on policy. And we will support the Byrd rule in this particular case.' Warren said Democrats will also certainly challenge the 'magic math' of using a so-called current policy baseline, which essentially argues that extending the expiring tax cuts doesn't increase the deficit. She said there's 'no way that accounting trick survives the Byrd Bath.' Sen. John Hoeven, R-N.D., thinks some of the bill's agricultural language is in trouble, too. The House 'put a lot of policy in there, and I don't know if we're gonna keep all that. We'll see how much we can keep,' Hoeven said.
Reuters
3 days ago
- Business
- Reuters
DC attorney general inks first settlement in RealPage price-fixing lawsuit
June 2 (Reuters) - The District of Columbia attorney general's office has secured its first settlement in a lawsuit accusing landlords and technology company RealPage of conspiring to inflate rental prices. The preliminary settlement, opens new tab with Washington apartment property manager William C. Smith & Co was disclosed on Monday in the Superior Court of the District of Columbia, and requires court approval. The District's lawsuit in 2023 was the first in a string of cases against RealPage by state attorneys general accusing landlords of keeping rental prices high through the use of a RealPage revenue management platform. In a statement, D.C. Attorney General Brian Schwalb on Monday said some of the city's landlords "operated as a housing cartel — illegally colluding to push rents even higher." William C. Smith & Co inflated rents at more than 9,300 apartment units across the city, according to Schwalb's office. The settlement would restrict William C. Smith & Co from using and promoting any revenue management software that relies on non-public or confidential data from rival companies. William C. Smith & Co in a statement said settling the lawsuit will allow the company to focus on its core business and to avoid what it called "considerable and unnecessary legal expenses." RealPage, William C. Smith & Co and other defendants in the lawsuit have denied any wrongdoing. RealPage did not immediately respond to a request for comment. Schwalb's lawsuit alleged 14 landlords agreed to share competitively sensitive data with RealPage and collectively used rents set by the company's revenue management technology. The city contends the scheme drove up rental prices at more than 50,000 units in the District, in violation of the District's antitrust law. A monthly report from W.C. Smith in 2022 showed the company had increased revenues per unit by 4.6-4.7% despite decreased occupancy levels, according to the lawsuit. Other apartment managers in the lawsuit include Greystar, the largest apartment owner in the United States. Greystar did not immediately respond to a request for comment. RealPage and other property managers face parallel federal litigation in the federal court in Nashville, Tennessee. Some other state attorneys general also separately are pursuing lawsuits against the company. The case is District of Columbia v RealPage et al, District of Columbia Superior Court, No. 2023-CAB-6762. For plaintiff: Adam Gitlin of the D.C. attorney general's office, and Emily Levens of Cohen Milstein Sellers & Toll For William C. Smith & Co: W. Todd Miller and Lucy Clippinger of Baker & Miller Read more: Apartment manager Greystar faces more 'junk fee' lawsuits after FTC case New Jersey sues RealPage, says collusion with landlords drives up rents RealPage goes on the offense in lawsuit against city of Berkeley over AI rent pricing law Landlords, software maker Yardi must face price-fixing lawsuit, US judge rules
Washington Post
3 days ago
- Business
- Washington Post
Lawsuit alleging rent inflation in D.C. leads to $1 million settlement
D.C. Attorney General Brian Schwalb (D) announced a $1 million settlement in a lawsuit alleging that multiple property management companies conspired to inflate rents in 50,000 apartments in the city through the RealPage company's pricing software. Several lawsuits have been filed around the country in the past two years against RealPage, the maker of widely used property management software, alleging that the company collects landlords' private data to undermine competition and set higher rents. Schwalb's office, which sued RealPage and 14 of the city's 'largest landlords' in 2023, said that the William C. Smith and Co. property management firm is the first defendant in the lawsuit to reach a settlement with the city. WC Smith, which owns more than 9,000 of the affected units, according to Schwalb's office, has denied that it 'violated any law or engaged in any anticompetitive conduct,' according to the settlement. 'We have consistently asserted that we did not participate in any of the activities alleged by the Office of Attorney General in the RealPage litigation. We now have been dismissed from this case without admission of the allegations or acceptance of liability,' John Ritz, president of WC Smith, said in a statement. 'By settling this matter, we avoid considerable and unnecessary legal expenses and can return our focus to creating thriving communities for the residents of Washington, D.C. — which has been our mission for more than 50 years.' A spokesperson for RealPage did not immediately respond to a request for comment. The alleged actions by the Texas-based company and the property management companies that use its software have garnered increased attention in multiple states after numerous complaints from tenants about their escalating rents. In Maryland, Attorney General Anthony G. Brown (D) sued RealPage and six major landlords in the state earlier this year, alleging that RealPage products 'use non-public, competitively sensitive data — for example, the number of potential tenant visits to a property — to estimate supply and demand, and then generate a 'price' to charge that maximizes the landlord's revenue.' A bill that would have barred landlords from using RealPage software failed to advance to a vote. In its lawsuit, Schwalb's office alleged that RealPage offers 'revenue management' software to real estate owners and property managers that relies on competitive, nonpublic pricing data to estimate supply and demand for rental units. RealPage uses that data to generate 'an artificially inflated rental price that maximizes the landlord's revenue,' according to his office. More than 30 percent of D.C.'s apartments in buildings with five or more units, and about 6o percent of apartments in buildings with 50 units or more, are priced using RealPage's software, Schwalb's office said, leaving many residents 'with no choice but to pay RealPage's inflated rents.' Monday's settlement requires WC Smith to pay just over than $1 million to the District in civil penalties, money for affected residents and legal fees. Under the settlement's terms, WC Smith is prohibited from using revenue management software that relies on nonpublic data to set rent prices. The company must also refrain from promoting this software to other firms. 'Rents in DC are already sky-high, and amidst this housing affordability crisis, many of the District's top landlords operated as a housing cartel — illegally colluding to push rents even higher,' Schwalb said in a statement. 'I commend W.C. Smith for putting an end to its anticompetitive practices and cooperating with my office to reach this agreement.' 'We will continue working to hold RealPage and the remaining landlords accountable,' he added. RealPage has been the subject of lawsuits in several jurisdictions after a ProPublica investigation found that the company's software may have led to illegal rent increases. In an amended antitrust lawsuit filed in January, Illinois and Massachusetts joined eight other states and the Justice Department in alleging that RealPage coordinated with six property management firms to raise rents.
6 days ago
- Business
Colorado's governor vetoes landmark ban on rent-setting algorithms
Democratic Gov. Jared Polis has vetoed a bill that would have made Colorado the first state to ban landlords from using rent-setting algorithms, which many advocates have blamed for driving up housing costs across the country. RealPage is the target of a federal lawsuit filed last year that accuses the real estate software company of facilitating an illegal scheme to help landlords coordinate to hike rental prices. Eight other states, including Colorado, have joined the Department of Justice's lawsuit, though RealPage has vehemently denied any claims of collusion and has fought to have the lawsuit dismissed. Critics say RealPage software combines confidential information from each real estate management company in ways that enable landlords to align prices and avoid competition that would otherwise push down rents. RealPage's clients include huge landlords who collectively oversee millions of units across the U.S. The Colorado bill, which recently passed the Democratic-led Legislature along party lines, would have prevented the use of such algorithms. In a veto letter Thursday, Polis said he understands the intent of the bill but that any collusion among landlords would already violate existing law. 'Reducing market friction through legitimate means that do not entail collusion is good for both renters and landlords,' Polis wrote. 'We should not inadvertently take a tool off the table that could identify vacancies and provide consumers with meaningful data to help efficiently manage residential real estate to ensure people can access housing.' In a statement, RealPage applauded Polis' veto, calling it an example of 'courageous leadership.' 'This is the right outcome for all of us who desire a healthy housing ecosystem that benefits Colorado renters and housing providers alike,' said Jennifer Bowcock, a spokesperson for the Texas-based firm. But Polis' decision outraged local housing advocates and the American Economic Liberties Project, a consumer rights advocacy group that has helped lead the fight against RealPage and other companies that use rent-setting algorithms. 'This veto sends the devastating message that corporate landlords can keep using secret price-fixing algorithms to take extra rent from people who have the least,' said Sam Gilman, co-founder and president of the Community Economic Defense Project, a Colorado-based nonprofit. RealPage software provides daily recommendations to help landlords and their employees price their available apartments. The landlords do not have to follow the suggestions, but critics argue that because the software has access to a vast trove of confidential data, it helps RealPage's clients charge the highest possible rent. Although Colorado was the first state to pass a bill targeting rental algorithms, at least six cities have passed similar ordinances over the past year. They include Philadelphia; Minneapolis; San Francisco; Berkeley, California; Jersey City, New Jersey; and Providence, Rhode Island. RealPage has decried those measures and sued over Berkeley's ordinance, saying it violates the company's free speech rights and is the result of an 'intentional campaign of misinformation and often-repeated false claims' about its products. RealPage argues that the real driver of high rents is a lack of housing supply. It also says that its pricing recommendations often encourage landlords to drop rents since landlords are incentivized to maximize revenue and maintain high occupancy. A clause recently added to Republicans' signature ' big, beautiful ' tax bill would ban states and localities from regulating artificial intelligence for a decade. On Tuesday, five Democratic senators sent a letter to RealPage asking if the company was involved in getting that clause inserted.
Yahoo
6 days ago
- Business
- Yahoo
Rent-setting software ban supporters blast Polis veto
Colorado Gov. Jared Polis speaks during a news conference about a bipartisan property tax reduction bill on May 6, 2024, at the Colorado Capitol. (Quentin Young/Colorado Newsline) Colorado Democratic lawmakers criticized Gov. Jared Polis after he vetoed a bill on Thursday afternoon that would have banned the use of computer algorithms to set rent in the state, calling the decision a failure of the state's values. 'Gov. Polis had the opportunity to save Coloradans money, but he instead aligned himself with tech companies that are engaged in practices so questionable that they're currently facing litigation from the federal government,' Sen. Julie Gonzales, a Denver Democrat and bill sponsor, said during a virtual press conference on Friday morning. House Bill 25-1004 was written as a consumer protection bill to ban software that uses private market data to suggest profit-maximizing rents to landlords. The Biden administration released a report last year that found software from companies like RealPage cost Denver renters an extra $136 per month, one of the highest monthly cost increases in the country, and is used in over 45% of multifamily rental units in the city. Colorado Attorney General Phil Weiser last year also targeted the practice when he joined an antitrust lawsuit against RealPage. In his veto letter, Polis wrote that he prefers to allow 'current state and federal investigations to run their course — including those Colorado is a party to.' He wrote that he agrees with the intent of the bill, and that collusion to artificially constrain rental supply is already illegal, but he worried about its effect on the state's housing market. 'We should not inadvertently take a tool off the table that could identify vacancies and provide consumers with meaningful data to help efficiently manage residential real estate to ensure people can access housing,' he wrote. 'If signed today, this bill may have unintended consequences of creating a hostile environment for providers of rental housing and could result in further diminished supply of rental housing based on inadequate data.' A RealPage spokesperson lauded Polis' veto. 'This is the right outcome for all of us who desire a healthy housing ecosystem that benefits Colorado renters and housing providers alike,' Jennifer Bowcock of RealPage said in a statement. The bill was sponsored by Gonzales, Sen. Nick Hinrichsen of Pueblo, Rep. Steven Woodrow of Denver and Rep. Javier Mabrey of Denver, all Democrats. A similar bill died last year, but this year's version passed on party-line votes in both legislative chambers. 'During my time at the Legislature, we've been tasked by the governor to save people money,' Woodrow said. 'During special sessions, we've been called down to cut property taxes to save homeowners an average of $80. Why we couldn't find the means to save renters 200 times that with a stroke of a pen is simply beyond unfortunate. The governor has punted this to the courts.' Groups that supported the bill included the Community Economic Defense Project, The Bell Policy Center, the Colorado Fiscal Institute and United for a New Economy. Supporters hoped the Biden White House report and pending litigation would help usher it into law this year. 'Unfortunately, the veto sends this devastating message that corporate landlords can keep using secret price-fixing algorithms to take extra rent from the people who have the least,' CEDP co-founder Sam Gilman said. The veto is Polis' 11th this year. He has until June 6 to sign or veto bills passed during this year's legislative session, which concluded earlier this month. SUPPORT: YOU MAKE OUR WORK POSSIBLE
