8-15-24 New York Good Cause Eviction Law (effective as of April 20, 2024)
On April 20, 2024, New York State enacted the Good Cause Eviction Law. The law limits evictions and caps rent increases for most market-rate apartments in New York City, and other villages, towns, or cities throughout New York State that elect to opt-in. So far, Albany, Ithaca, Kingston, and Poughkeepsie have elected to opt-in, with more expected to follow.
Below is an overview of the law and its requirements for all rented apartments, units, or homes in New York City and for those municipalities that have opted in.
Definition of Good Cause
Under the Good Cause Eviction Law, landlords are allowed to evict tenants for the following “good cause” reasons:
- Nonpayment of rent, as long as the basis for nonpayment is not an unreasonable rent increase;
- Breach of a substantial obligation of the lease agreement and failure to cure;
- Nuisance;
- Illegal occupancy;
- Failure to provide access for repairs;
- *The landlord or landlord’s family member plans to move into the home.[1] Significantly, this reason is not applicable if the home is occupied by a tenant who is 65+ years old or has a disability;
- *Demolition;
- *Withdrawal from the rental market (landlord plans to take the home off the market); and
- Where a tenant fails to agree to reasonable changes in the lease at renewal.
*If a landlord claims one of the starred reasons for eviction, they must present “clear and compelling” evidence in court that shows the action they plan to take.
Exemptions
The Good Cause Eviction Law does not apply if there is no landlord-tenant relationship, as specified in Real Property Actions and Proceedings Law (RPAPL) § 713, or for units that are subject to local, state, or federal regulations. In addition, the law does not apply to (a) properties owned by “small landlords” who own up to 10 units, (b) owner-occupied properties with up to 10 units, (c) sublet units, (d) employee-occupied units, and (e) rent-regulated units, such as (i) affordable housing, (ii) units owned in a condo or co-op building, (iii) units where a Certificate of Occupancy was issued on or after Jan. 1, 2009, for a 30-year period, (iv) seasonal dwellings, (v) units in a medical facility, (vi) manufactured homes, (vii) hotel rooms/class B dwellings, (viii) dorms operated by schools, (ix) units located in or for use by a religious institution, and (x) units where the rent charged is greater than 245% of Fair Market Rent (“FMR”) for a unit of that type.[2]
Cap on Rent Increases for Initial Leases and Lease Renewals
Effective immediately, landlords in municipalities that elect to adopt the Good Cause Eviction Law are prohibited from taking an unreasonable rent increase upon a lease renewal, which is the lesser of the inflation index (i.e., 5% plus annual percentage change in the Consumer Price Index or CPI) or 10%. Rent increases or lease renewals cannot exceed this cap.
Where a rent increase is found unreasonable, a tenant’s failure to pay the increase does not constitute “good cause” to remove or evict a tenant. However, a landlord may rebut the presumption that a rent increase is unreasonable in court. To rebut the presumption, the court may consider all relevant factors, including increases based on completed “significant repairs” that were not the result of a landlord’s failure to maintain the property or unit, defined as follows:
The replacement or substantial modification of any structural, electrical, plumbing, or mechanical systems or abatement of hazardous materials, including lead paint, mold, or asbestos, but not cosmetic improvements, such as painting, decorating, or minor repairs. A court may consider other relevant facts, including, but not limited to, fuel, utility, insurance, and/or maintenance costs. Any increases that are below the lesser of the inflation index or 10% are per se reasonable.
Notice Requirements for All Leases, Notices, and Petitions
A tenant cannot waive their right to the protections of the Good Cause Eviction Law. Any agreement attempting to waive a tenant’s rights under the law is deemed void as against public policy.
Starting on August 18, 2024, landlords subject to the Good Cause Eviction Law must provide a specific notice for all initial leases, renewal leases, notices and petitions, and 14-Day Notices to Quit. The Good Cause Eviction Law Notice requires landlords to (i) inform tenants whether their unit is covered by the Good Cause Eviction Law or explain why it is exempt from the law; (ii) provide a justification for rent increases if the unit is covered by the Good Cause Eviction Law; and (iii) provide justification for non-renewals if the unit is covered by the Good Cause Eviction Law. A copy of the required notice follows this summary (see New York Real Property Law § 231-c). Significantly, even if a unit is exempt from the law, landlords in municipalities that have adopted the law are required to provide the notice and identify the applicable exemption(s) for all units located in those affected municipalities. With respect to all 14-Day Notices to Quit, the Good Cause Eviction Law Notice must be appended or contained within the Notice to Quit.
The Good Cause Eviction Law Notice requirement takes effect on August 18, 2024. Many municipalities across the state, including the City of Rochester, may soon adopt the law and, if so, the same requirements stated above will apply.
Impact
The Good Cause Eviction Law is broad in scope and will have far-reaching effects on the rental housing market in New York State. For localities outside of New York City, the New York State Attorney General’s Office and New York State Tenant Protection Unit will closely monitor landlords for compliance of the Good Cause Law.
Woods Oviatt Gilman LLP remains fully prepared to advise landlords, property owners, and localities about the Good Cause Eviction Law and its impact on the rental housing market throughout New York State.
