New Legislation Affecting Tenant’s, Landlord’s Rights

On April 20, 2024, Gov. Kathy Hochul signed into law, as part of the 2025 Budget, new legislation introducing critical changes to the landlord-tenant legal landscape in New York City and New York State. Notable legislation includes the newly enacted Good Cause Eviction Law and accompanying notice requirements and procedural amendments.

New Article 6-A of the Real Property Law: The Good Cause Eviction Law

Newly enacted Article 6-A of the Real Property Law entitled “Prohibition of Eviction Without Good Cause” [see https://bit.ly/4alLfPj] (the “Good Cause Eviction Law”), along with related amendments, now provide for new requirements that place a cap on rent increases landlords may charge on covered housing, and introduce new requirements relating to eviction proceedings, including establishing “good cause” before a tenant could be evicted. The Good Cause Eviction Law went into effect immediately. Various other amendments, including notice requirements, and the new requirements relating to eviction proceedings, go into effect on Aug. 18, 2024.

Good Cause Effective in NYC Immediately; But Other Municipalities Must Opt-In

It is important to note that while the new Good Cause Eviction Law went into effect in New York City immediately, other municipalities throughout New York State will need to opt-in by enacting this legislation if they so choose. If a municipality adopts the provisions of the Good Cause Eviction Law it may exempt a housing unit if such a unit has a monthly rent above a percentage of fair market rent as published by HUD, and as published for each county in the state by the NYS Division of Housing and Community Renewal by August 1^st. The law also permits the village, town, or city to define what constitutes a “small landlord,” if it chooses to adopt the Good Cause Eviction Law.

If the local law does not provide for a different monthly rent exemption amount or does not provide a different definition of “small landlord,” then the terms contained in the Good Cause Eviction Law would apply. Additionally, it is important to note that if both a town and a village located within that town opt-in and adopt the Good Cause Eviction Law, the local law adopted by the town shall not apply in the village.

Exemptions from the Good Cause Eviction Law

Section 214 of the Good Cause Eviction Law applies to “all housing accommodations,” except for the following which are exempt from the law:

Premises owned by a “small landlord,” which is defined as any individual who does not own, directly or indirectly, more than 10 units in New York State. This also includes any individual who owns more than 10 housing units through one or more distinct entities (e.g., LLCs, corporations, etc.).
Owner-occupied premises with not more than 10 units.
A subleased unit where the sublessor seeks in good faith to recover possession for their own personal use and occupancy.
A unit where the possession, use or occupancy of which is solely incident to employment and such employment is or has been lawfully terminated.
Units that are already subject to other local, state, or federal rent regulations and eviction laws.
Units required to be affordable pursuant to existing local, state, and federal laws and regulations.
Units within a condominium or cooperative corporation, or any building, which is subject to an offering plan submitted to the attorney general.
Premises for which a permanent or temporary certificate of occupancy was issued on or after Jan. 1, 2009, and the exemption will be for a period of thirty (30) years after the date of such issuance.
Premises that qualify as a “seasonal use dwelling” under Section 7-108 of New York’s General Obligations Law [see https://bit.ly/3ygFF3s].
Certain housing accommodations in a hospital, continuing care retirement community, assisted living facilities, adult care facilities, and senior residential communities.
Units in a mobile home park and transient hotels.
Dormitory units owned and operated by a school.
Housing units located within or used by a religious institution.
Units with rents greater than the fair market rent as published by HUD and DHCR no later than August 1st of each year, or greater than 245% of the fair market rent, unless the villages, towns, or cities that choose to opt into the Good Cause Eviction Law set their own exempt rent amount.

Unless the housing accommodations are exempt as described above, the Good Cause Eviction law will apply in all other instances. A landlord who commences an eviction proceeding will now have to establish “good cause” in order to lawfully remove a tenant from a rental unit.

‘Good Cause’ and the Grounds for Removal of a Tenant

Section 216 of the Good Cause Eviction Law provides that no landlord may remove a tenant, even if that tenant has no lease or the lease has expired, unless the landlord can establish “good cause” based on one or more of the following grounds:

The tenant has failed to pay rent due and owing, provided that the rent that was due and owing, or any portion of it, did not result from an unreasonable rent increase.
The tenant is violating a substantial obligation of their tenancy or is breaching a landlord’s rules and regulations (which need to be accepted by the tenant in writing and/or attached to the lease at the commencement of the tenancy or at renewal). If any rules or regulations are updated and/or implemented after the commencement of the lease, they will need to be acknowledged and agreed to in writing by the tenant.
The tenant is “committing or permitting a nuisance, or is maliciously or by reason of negligence damaging the housing accommodation, or the tenant's conduct interferes with the comfort and safety of the landlord or other tenants or occupants of the same or adjacent buildings or structures.”
Where the tenant violates or causes a violation of the law which results in the landlord being subject to civil or criminal penalties, and “provided that a state or municipal agency with jurisdiction over the tenant has issued an order requiring the tenant to vacate the housing accommodation.” The law also restricts a tenant from being evicted if (1) the tenant is able to cure the violation, and such cure would not require removal, or (2) if it is determined that the condition resulting in the violation was caused by the landlord.
The tenant uses or permits the premises to be used for an illegal purpose.
The tenant unreasonably refuses the landlord access to the premises “for making necessary repairs or improvements required by law, or for the purpose of showing the premises to a prospective purchaser, mortgagee or other person having a legitimate interest in the premises.”
The landlord seeks in good faith to recover possession of the premises for the landlord's own personal use and occupancy as the landlord's principal residence, or the personal use and occupancy as principal residence of a family member. The law does not apply to premises occupied by a tenant who is 65 years of age or older or who is disabled.
The landlord seeks in good faith to demolish the premises. However, the landlord must make such showing by clear and convincing evidence.
The landlord seeks in good faith to remove the premises from the housing rental market. The landlord must also establish this by clear and convincing evidence.
The tenant fails to agree to reasonable changes to a lease at renewal, including increases in rent that are not unreasonable as defined in the law, and as long as written notice of the changes to the lease were provided to the tenant at least 30 days, but no more than 90 days, prior to the expiration of the current lease.
If a landlord seeks to: (1) recover possession of the premises for personal use, (2) demolish the premises, or (3) withdraw the premises from the rental market, the tenant shall have the right to file an action for damages, or injunctive or declaratory relief against the landlord, or a prospective purchaser of the premises, if the tenant can prove that the landlord, or the purchaser, made a false statement regarding the above three instances. If successful, the tenant would be entitled to actual damages and reasonable attorneys’ fees.

It is important to note that a landlord will not be entitled to evict a tenant if the landlord fails to comply with any of the requirements of the Good Cause Eviction Law and related legislation. The law also expressly prohibits any waiver of the applicability of the law by the parties in any lease or rental agreement and provides that any such waiver will be void as against public policy.

‘Unreasonable’ Rent Increases Are Not Permitted

The new legislation provides that a landlord cannot unreasonably raise the rent on non-exempt housing. Under the Good Cause Eviction Law, a rent increase is deemed to be unreasonable if it exceeds the “local rent standard,” which is defined as a rent increase equal to the “inflation index” plus 5%, or 10%, whichever is lower. The “inflation index” is defined as 5% plus the annual percentage increase in the Consumer Price Index, or 10%, whichever is lower. For New York City, and any municipalities located within the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester, the CPI for “New York-Newark-Jersey City” is to be used. For all other municipalities in New York State, the CPI published for the “Northeast Region” would apply.

However, instances where a landlord charges more than the “local rent standard” a landlord may rebut the presumption that such an increase is unreasonable. A court will consider “all relevant factors” (e.g., increases in property taxes, costs of significant repairs, increases in insurance costs, etc.) in determining whether or not an increase is unreasonable.

New Tenant Notice Required on Leases and Other Documents

The new law also requires that a landlord, regardless of whether the unit is subject to, or exempt from, the Good Cause Eviction Law, must include the Good Cause Eviction Law Notice on all leases and lease renewals, renewal notices, default and arrears notices, and any petition filed with the court in connection with an eviction proceeding. The form of the notice is provided in the newly added Section 231-c of the Real Property Law. If the unit is exempt, a landlord is required to identify each applicable exemption in the Notice. These particular provisions of the newly enacted legislation go into effect on Aug. 18, 2024.

Legal Column author John Dolgetta, Esq. is the principal of the law firm of Dolgetta Law, PLLC. For information about Dolgetta Law, PLLC and John Dolgetta, Esq., please visit http://www.dolgettalaw.com. The foregoing article is for informational purposes only and does not confer an attorney-client relationship and shall not be considered legal advice. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views or positions of HGAR, its affiliates, or any other entity.