Building owners can sue state over losses caused by rent regulation

The owners of apartment buildings can sue the state over losses they have suffered because rents are regulated, under a ruling by the Constitutional Court on Tuesday. Judge Ivana Janu said the state was responsible for the losses because parliament had failed to act on the issue for several years. Owners argue rents are so low they can neither maintain their buildings nor make a profit. Paradoxically, deregulation was approved last month, with rents set to rise 14 percent a year between 2007 and 2010.