Good Cause Eviction. Good for Who?
In simple terms, the new law in New York City that was signed on April 20, 2024, by Governor Hochul states that landlords must have a valid reason, called "Good Cause," to evict a tenant from their apartment. This law applies to most residential apartments in New York City, and other areas in the state can choose to adopt it. "Good Cause" includes reasons like not paying rent or breaching important rules of the lease. Landlords can't evict tenants for unfair reasons. Some apartments are exempt from this law, such as those in certain types of buildings or owned by small landlords. The law also requires landlords to give notice if they want to increase rent or not renew a lease, and it includes other specific rules about disclosing information to tenants. These rules will be in place until 2034. Unless an exemption applies, the new law applies to all residential apartments in New York City. Notably, a tenant cannot waive their right to the protections of "Good Cause" and any agreement to do so will be found void as against public policy. In brief, under the "Good Cause," law unless an exemption applies, landlords are now restricted from removing a tenant from an apartment, unless it has "Good Cause" to do so.
What is "Good Cause"? "Good Cause" is defined under the law as follows:
Failure to pay rent due and owing, unless the rent is "unreasonable."
Rent increases will be considered reasonable if they are 10% or 5% + CPI ("local rent standard"), whichever is less. There is a rebuttable presumption that increase above is "unreasonable."
Courts may consider all relevant facts to determine if the rent increase is reasonable, including, without limitation, fuel and other utility costs, insurance, maintenance, increases in property tax expenses and significant repairs.
Significant repairs include structural repairs, electrical, plumbing or mechanical repairs requiring a permit, abatement of hazardous materials, such as lead paint, asbestos or mold and exclude cosmetic repairs such as painting and decorating.
Breach of a substantial obligation of tenancy, after 10-day written notice to cure.
Nuisance conduct.
Occupancy in violation of law unless the condition is created by landlord.
Use of the housing accommodation for illegal purposes.
Failure to provide access for necessary repairs.
Owner occupancy for primary residence.
Demolition or withdrawal from rental market; and
A tenant's refusal to agree to reasonable changes to a renewal lease, including, without limitation, a reasonable rent increase, provided that the proposed changes were provided no more than 90 and no less than 30 days prior to the expiration of the lease term.
Exemptions:
Apartments exempted from the "Good Cause" law, include:
Buildings for which a temporary or permanent certificate of occupancy was issued on or after January I, 2009, for a period of thirty years following issuance of such certificate.
Owner occupied housing accommodations with fewer than 10 units.
"Small Landlord" who owns no more than 10 units in the State.
It is important to note, however, that beneficial interests in entities owning more than 10 units in New York State will defeat the exemption, and the burden is on the owner entity to disclose all natural persons with beneficial interests in order to obtain an exemption.
Units occupied solely incident to employment and such employment is being or has been lawfully terminated.
Units which are sublet, where the sublessor seeks to recover the unit for their own use.
Hospital, continuing care retirement community, assisted living facility, adult care facility, senior residential community and not-for-profit independent retirement communities.
Units otherwise subject to rent regulation under local, state or federal law, rule, or regulation.
Units subject to affordability requirements pursuant to statute, regulation, restrictive declaration or regulatory agreement;
Apartments owned as a condominium or cooperative, or subject to an offering plan submitted to the Attorney General;
Seasonal use dwelling units;
Manufactured homes on or in a manufactured home park;
Hotel rooms or other transient use covered by the definition of a class B multiple dwelling;
School dormitories;
Housing accommodations within or for the use of a religious facility or institution; and
Apartments for which the rent exceeds 245% of the monthly fair market rent published by HUD for the county in which the housing accommodation is located. Current amounts in NYC:
Studio: $5,814.00; lBR: $6,005.00; 2BR: $6,742.00; 3BR: $8,413.00.
Notice Requirements:
Notice requirements under the statute do not take effect until 120 days after April 20, 2024 (August 18, 2024). Newly enacted RPL 231-c requires landlords to annex to any lease or renewal lease, a notice disclosing whether or not the "Good Cause" law applies to the lease, and must include the following information:
Whether the unit is exempt from "Good Cause" and, if so, the basis for the exemption;
If the unit is subject to "Good Cause," and the landlord intends to increase the rent above the local rent standard, the justification for such increase;
If the unit is subject to "Good Cause" and the landlord is electing not to renew the lease, the basis for such non-renewal.
The current notice requirements under RPL 226-c (30/60/90 Day Notice to tenants of Rent Increase or Non-Renewal) and RPAPL 711(2) (statute governing Rent Demands) have been amended and are now required to include the RPL 231-c disclosures set forth above.
Additionally, RPAPL 741 (statute providing contents of petitions in summary proceedings) is amended to require that the RPL 231-c disclosures are appended to or incorporated into any petition.
This firm will assist its clients in preparing the required notices for both leases and legal proceedings.
Many have been against good cause eviction from the start because of its flaw in the system due to:
Overregulation: The new laws impose significant restrictions on landlords, potentially discouraging investment in housing and leading to a reduction in the availability of rental units. This could exacerbate housing shortages, ultimately hurting tenants.
2. Inflexibility: By mandating "Good Cause" for eviction, the laws limit landlords' ability to manage their propetries effectively.
They may hinder landlords from addressing issues promptly, leading to deteriorating living conditions for other tenants.
3. Intended Consequences: The exemptions and complexities within the law could lead to unintended consequences and
legal disputes. This could ultimately undermine the goals of the legislation and result in inefficiencies within the rental market
with unnecessary litigation and difficulty in removing tenants that could have otherwise been removed prior to the new laws.
4. Impact on Small Landlords: While exemptions exist for small landlords, the burden of compliance and navigating the legal
complexities may still disproportionately affect them. This could result in small landlords being unfairly burdened or discouraged
from renting out their properties altogether.
The SKH Heiberger team is here to help you navigate these new laws. Please feel free to reach out to us to explain and assist you with all of your real estate needs.