New York's Top Court to Hear Case on Landlords and Section 8 Housing

Ithaca real estate company challenges state law requiring participation in federal rent assistance program.

Apr. 10, 2026 at 3:25pm

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A photorealistic painting of a multi-story apartment building in warm, golden sunlight, with deep shadows across the facade, conveying a sense of solitude and quiet contemplation around the legal and regulatory issues impacting affordable housing.The legal battle over landlord participation in affordable housing programs casts a long shadow over New York's rental landscape.Ithaca Today

New York state's highest court, the Court of Appeals, will hear a case brought by Ithaca Renting Co. and its owner Jason Fane challenging a 2019 state law that requires landlords to accept Section 8 housing vouchers. Fane's lawyers argue the law violates the Fourth Amendment by forcing landlords to consent to government searches and relinquish constitutional rights.

Why it matters

The case could have major implications for the availability of affordable housing options in New York, as the Section 8 program is a key tool for providing low-income residents access to rental units. A ruling against the state law could make it harder for Section 8 voucher holders to find willing landlords.

The details

In 2022, New York Attorney General Letitia James sued Ithaca Renting Co. over the company's refusal to participate in the federal Section 8 housing voucher program, which the 2019 state law mandates. A state appellate court sided with Ithaca Renting in March 2026, finding the law violates the Fourth Amendment's protections against improper searches and seizures by forcing landlords to accept Section 8 payments and undergo additional government inspections. The state has appealed the ruling to the Court of Appeals, the highest court in New York.

  • In 2022, Attorney General Letitia James sued Ithaca Renting Co. over its refusal to accept Section 8 vouchers.
  • In March 2026, a state appellate court ruled in favor of Ithaca Renting, finding the 2019 state law unconstitutional.
  • On April 1, 2026, Attorney General James announced she would appeal the appellate court's decision to the New York Court of Appeals.

The players

Ithaca Renting Co.

An Ithaca, New York real estate company owned by longtime local real estate figure Jason Fane, which is challenging the state's law requiring landlords to accept Section 8 housing vouchers.

Letitia James

The New York State Attorney General who sued Ithaca Renting Co. in 2022 over its refusal to participate in the Section 8 program, and is now appealing the appellate court's ruling against the state law.

Jason Fane

The owner of Ithaca Renting Co. who is leading the legal challenge against the state law mandating Section 8 participation, arguing it violates landlords' constitutional rights.

Nathan Lyman

The attorney representing Ithaca Renting Co. and Jason Fane, who has argued the 2019 state law unconstitutionally forces landlords to relinquish their rights.

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What they’re saying

“The NY legislature overstepped its authority in 2019, attempting to make a voluntary federal program compulsory, and shift state responsibilities to the federal government.”

— Nathan Lyman, Attorney for Ithaca Renting Co.

“The solution to housing issues in this state is not to over-regulate, enact price controls or sue businesses just before an election, but to reduce regulation and streamline new construction.”

— Nathan Lyman, Attorney for Ithaca Renting Co.

What’s next

The New York Court of Appeals has not yet set a date to hear the case, but the appeal will be automatically taken up by the state's highest court since it involves a challenge to a state law.

The takeaway

This case highlights the ongoing tensions between efforts to expand affordable housing options through programs like Section 8, and landlords' claims that such mandates violate their constitutional rights. The Court of Appeals' ruling could have significant implications for the availability of Section 8 housing across New York state.