New York Adopts Good Cause Eviction Law

On April 20, 2024, New York State enacted the Good Cause Eviction Law, which limits evictions, requires lease renewals, and caps rent increase for most market-rate apartments in NYC and, potentially, other villages, towns, or cities in New York State that elect to opt-in for coverage. The law does not apply to rent-regulated units. Under the law, landlords may not take an unreasonable rent increase upon lease renewal, defined as the lesser of the inflation index (5 percent plus annual percentage change in the CPI) or 10 percent. A landlord may rebut the presumption that a rent increase is unreasonable in court. 

Good cause is defined by the law as nonpayment of rent as long as the basis for nonpayment isn't 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, owner use and occupancy with exemptions for tenants who are 65 years of age or older and who are disabled, demolition, withdrawal from the rental market, and where a tenant fails to agree to reasonable changes in the lease at renewal.

The Good Cause Eviction Law doesn't apply to properties owned by "small landlords" who own up to 10 units in NY, owner-occupied properties with up to 10 units, units that are sublet, employee-occupied units, otherwise rent-regulated units, affordable housing, units owned in a condo or co-op building, units where a C of O was issued on or after Jan. 1, 2009, for a 30-year period, seasonal dwellings, units in a medical facility, manufactured homes, hotel rooms/class B dwellings, dorms operated by schools, units located in or for use by a religious institution, and units where the rent charged is greater than 245 percent of FMR for a unit of that type.

While portions of the new law won't be effective until August 2024, the requirement to provide renewal leases and not to exceed a reasonable rent increase are effective immediately.

Good Cause Eviction Law, NY State Bills S.8306C, A. 8806C, Part HH (4/20/24), adding NY Real Property Law Sections 210 - 218, 231-c, 741(5-a), 741(5-b) and amending NY RPL Sections 226-c(1)(a)[15-pg. document]