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Federal Preemption Of Rent Regulation Under Firrea, Eric William Hess

Fordham Urban Law Journal

After hundreds of savings and loan institutions became insolvent in the 1980s, Congress enacted the Federal Institutions Reform, Recovery, and Enforcement Act, which was designed to provide affordable mortgage financing to low and moderate income individuals, and to dispose of the assets of the failed savings and loan institutions. Among the powers granted by FIRREA to the FDIC was the ability to disaffirm or repudiate leases held by insolvent institutions if those leases are deemed burdensome. In "Resolution Trust Corp. v. Diamond," the United States District Court wrongly held that FIRREA cannot be construed to allow Federal preemption of State …