A Glance at New York City’s Good Cause Eviction Law
New York City's Good Cause Eviction Law
New York City's recently enacted Good Cause Eviction law marks a significant shift in tenant protections, addressing long-standing concerns over unjust evictions and steep rent increases. The law, which officially came into effect on April 20, 2024, but fully took effect with additional requirements starting on August 18, 2024, introduces new rules aimed at curbing arbitrary evictions and limiting rent hikes.
Key Provisions of the Good Cause Eviction Law
Eviction Protections: The law mandates that landlords can only evict tenants for "good cause," which includes non-payment of rent, substantial violations of the lease agreement, nuisance behavior, illegal activity, or the landlord’s need to reclaim the property for personal use, such as for family occupancy or building demolition. Landlords can no longer terminate leases simply because they choose to do so; they must demonstrate a valid reason recognized by the law.
Rent Increase Limitations: Rent increases are capped under the new law. Specifically, an increase is deemed unreasonable if it exceeds the lower of either 10% of the current rent or 5% plus the annual change in the Consumer Price Index (CPI). For example, in 2024, with a CPI increase of 3.3%, the maximum permissible rent hike would be 8.3%. If a landlord wishes to raise the rent beyond this threshold, they must justify the increase in court, potentially citing higher maintenance costs, significant repairs, or rising property taxes.
Exemptions: The law does not apply universally across all rental units. Notably, properties owned by small landlords with ten or fewer units, owner-occupied buildings with less than ten units, and units in newer buildings (those with a certificate of occupancy issued after January 1, 2009) are exempt from these rules. Additionally, luxury units rented at more than 245% of the local Fair Market Rent are also excluded from the law's coverage.
Notification Requirements: Starting August 18, 2024, landlords must inform tenants in writing whether their units are covered by the Good Cause Eviction law. This notification must be included in all new and renewal leases, as well as in any eviction-related notices.
Implications for Landlords and Tenants
For tenants, this law represents a substantial gain in housing stability, especially for those in unregulated apartments who were previously vulnerable to steep rent hikes and sudden evictions. The requirement for landlords to provide a valid reason for evictions adds a layer of security for tenants, ensuring that they cannot be displaced without due cause.
For landlords, the law introduces new challenges. They must now navigate stricter regulations and potentially face legal battles to justify rent increases or evictions that exceed the defined thresholds. This may impact their operational costs and decision-making processes, particularly in maintaining older buildings or investing in new properties.
The Good Cause Eviction law is a landmark piece of legislation in New York City's ongoing efforts to balance tenant rights with property ownership interests. Its impact will likely be felt across the city's housing market, potentially inspiring similar measures in other jurisdictions.
This legislation will remain in effect until June 15, 2034, unless renewed or revised by the New York State Legislature, giving the city a decade to evaluate its long-term effects on housing stability and market dynamics