Middletown Schedules Public Hearing on Good Cause Eviction

MIDDLETOWN—The City of Middletown will be considering adopting Good Cause Eviction legislation in the coming months. Mayor Joseph DeStefano in an advisory sent to the community on Feb. 10, announced an upcoming public hearing of the Middletown Common Council on Good Cause Eviction legislation for March 4 at City Hall. The public hearing will begin at 7:30 p.m.

Mayor DeStefano wrote: “We are writing to invite you to participate in an important public hearing on Good Cause Eviction, a policy that could impact housing stability for tenants and the broader community. This hearing is an opportunity for you to share your thoughts, experiences, and concerns about tenant protections, rent increases, and the future of fair housing in the City of Middletown.”

The mayor noted that landlords often oppose Good Cause Eviction “because they argue it restricts their ability to manage their properties effectively, results in less investment in housing and limits landlords’ ability to respond to market conditions.”

Good Cause Eviction policies have been the subject of intense debate across New York State, with landlords and real estate professionals raising concerns about its long-term impact on housing availability and property management. The Hudson Gateway Association of Realtors (HGAR) and the New York State Association of Realtors (NYSAR) strongly oppose the enactment of Good Cause Eviction, citing significant risks to the housing market.

Why HGAR Opposes Good Cause Eviction:

HGAR and other real estate organizations believe that while tenant protections are important, Good Cause Eviction creates unintended consequences that could reduce housing availability and harm both landlords and tenants. Key concerns include:

Automatic Lease Renewal Strips Property Owners of Control:
Under Good Cause Eviction, tenants are granted an automatic right to renew their lease, except under limited circumstances such as nonpayment of rent or significant lease violations. This means landlords effectively lose the ability to decide whether to continue renting to a tenant based on legitimate business reasons, property management needs, or future plans for the unit.
- This is particularly problematic for small landlords who may need to move into their own rental property, sell the unit, or adjust their tenant base.
- It also removes the landlord’s ability to make decisions based on tenant history (e.g., frequent late payments, disruptive behavior, or high maintenance costs), forcing them into prolonged tenancies that might not be sustainable.
Arbitrary Rent Increase Threshold Could Harm the Market:
Good Cause Eviction caps the amount a landlord can raise rent before it is considered an “unreasonable” or “excessive” increase, which automatically grants tenants legal grounds to challenge it in court. While the law does not explicitly set a fixed percentage cap, courts may use a benchmark—such as the regional Consumer Price Index (CPI) plus a small percentage—to determine what qualifies as excessive.
- This discourages landlords from adjusting rents to reflect market conditions, inflation, rising property taxes, or increased maintenance costs. Over time, it could lead to deteriorating housing conditions, as landlords struggle to afford necessary upkeep.
- The policy fails to account for the reality of rental markets, where property values, demand, and costs fluctuate. If landlords cannot fairly price their units, they may opt to sell their properties rather than keep them in the rental market, further shrinking the already-limited housing supply.

Other Key Concerns

Discouraging Investment in Rental Housing: By limiting a landlord’s ability to adjust rent or terminate leases based on business needs, Good Cause Eviction disincentivizes property owners—particularly small, independent landlords—from continuing to invest in rental properties. This could reduce the number of available rental units, exacerbating the housing shortage.
Unfair Burden on Small Property Owners: Unlike large corporate landlords, many Hudson Valley landlords own just one or two properties and rely on rental income to cover expenses. This law could force them to keep tenants who violate lease agreements or fail to pay rent on time, making property management financially unviable.
Lack of Flexibility in Lease Agreements: The law removes key property management rights by making it harder for landlords to remove problematic tenants, even in cases that go beyond nonpayment, such as damage to the property, disruptive behavior, or lease violations.
Increased Legal and Compliance Costs: With additional legal hurdles to evict tenants—even in cases of lease violations—landlords may face higher legal expenses, which could lead to higher rents for all tenants.

Those who support Good Cause Eviction say the “protections are designed to prevent arbitrary evictions and excessive rent hikes while ensuring landlords can still remove tenants for nonpayment or lease violations. Without these protections, many renters face uncertainty, displacement, and financial hardship,” Mayor DeStefano stated.

The City of Middletown joins an ever-growing list of municipalities that have considered or have opted into the New York State-adopted Good Cause Eviction law.

According to NYSAR, the following communities, including 10 in the Hudson Valley, have adopted Good Cause Eviction legislation:

Albany (City) – adopted in June 2024
Kingston (City) – adopted in July 2024
Ithaca (City) – adopted July 2024
Poughkeepsie (City) – adopted July 2024
Beacon (City) – adopted August 2024
Newburgh (City) – adopted September 2024
Nyack (Village) – adopted September 2024
Hudson (City) – adopted October 2024
New Paltz (Village) – adopted October 2024
Rochester (City) – adopted December 2024
Fishkill (Town) – adopted January 2025
Catskill (Village) – adopted January 2025
Croton-on-Hudson (Village) – adopted January 2025

The mayor in his advisory stated: “We encourage tenants, landlords, housing advocates, and all concerned residents to attend the hearing and share their perspectives. Public input is crucial in shaping fair housing policies that balance the needs of renters and property owners alike.”

HGAR will be present at the public hearing on March 4 and urges real estate professionals, landlords, and property owners to attend as well, to voice their concerns about the potential long-term effects of this legislation. For those who cannot attend in person, written comments can be submitted to rmccormack@middletownny.gov or mailed to the Common Council, 16 James St., Middletown, NY, 10940.

He concluded his notice by saying: “Your story and perspective matter. Let us work together to ensure fair and reasonable housing policies that support a stable and thriving community.”