LEGAL CORNER: NYC Passes the FARE Act and Restricts the Payment of Commissions by Tenants
The real estate industry has expressed concerns regarding the potential repercussions of the FARE Act.
GOSHEN—New York State Supreme Court Justice Sandra Sciortino, recently granted summary judgment to a group of property owners and declared the City of Newburgh’s Good Cause Eviction law (Local Law 6) null and void.
In her Nov. 29 ruling, Judge Sciortino said Local Law 6 “alters substantive provisions and procedures of existing state law by imposing prerequisites to the commencement of an eviction proceeding not required under state law. Accordingly, Local Law 6 (Necessity for good cause) and 240-34 (Grounds for removal of tenants) are in direct conflict with state law and thereby preempted.”
The suit was brought by HYH Newburgh, LLC, M&N Newburgh Development, LLC, 160 Grand Owners, LLC and Michael Acevedo against the City of Newburgh.
The New York State Association of Realtors reported that Judge Sciortino’s decision noted that while state law enables landlords to evict tenants who overstay their leases, Newburgh’s law “expands the rights of the tenant” by requiring landlords to do more to evict renters and clearly conflicts with landlord’s rights.
The City of Newburgh could appeal the decision. Mike Neppl, Chief of Staff for the City of Newburgh, stated, “We are disappointed with the decision and the City Council will review our options with its attorneys.”
Mid Hudson News reported that grassroots organization For the Many criticized the decision saying the Hudson Valley is facing a housing crisis. Spokesman Aaron Narraph Fernando said, “This decision essentially says that Newburgh does not have the power to enact a local good cause law because it is preempted by state law. We don’t agree with that legal reading. We do believe that local cities like Kingston, Newburgh, Poughkeepsie and Beacon, that have passed good cause laws have the legal authority to protect their tenants from unjust evictions and high rent increases,” he said.
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