Good Cause Eviction Law:

Through the State Budget-Making Process, lawmakers have approved new rules that would cap rent increases for some New York apartments through the newly enacted “Good Cause Eviction Law;” new Article 6-A of the Real Property Law.  Legislation.  While much of the new law takes effect immediately, the notice requirements, as well as the changes in rent demands and pleading requirements for summary proceedings, take effect 120-days later, on August 18, 2024. 

Exempt from the Good Cause Eviction Law are:

1. Premises owned by a “Small Landlord” meaning a landlord that owns no more than ten units in the State.  If a landlord is an entity, each person with an ownership interest in the entity may own no more than ten units; 
2. Owner-Occupied units with no more than ten units;
3. A unit that is sublet where the Sublessor seeks to recover possession for their own personal use;
4. Employee occupied units;
5. Units subject to Rent Regulation or other regulations;
6. Affordable Housing Units governed by specific Income Levels pursuant to statute or regulations;
7. Condominium or Cooperative Units;
8. Unit for which a temporary or permanent certificate of occupancy was issued on or after January 1, 2009, for a period of 30 years following issuance of such certificate;
9. Qualifying Seasonal Use dwelling unit;
10. Housing Accommodation in a Hospital, Continuing Care Retirement Community and Assisted Living Residence;
11. Manufactured Home Park;
12. Hotel Room or other Transient use;
13. Dormitory owned and operated by an institution of higher education or a Grade school, Kindergarten through Grade 12;
14. Housing accommodation used by a Religious Facility or Institution;
15. Units where the monthly rent exceeds 245% of the fair market rent established by the United States Department of Housing and Urban Development, which DHCR will be required to publish.

Grounds for Removal of Tenants:

Owners of apartments not Exempt from the Good Cause Eviction Law must establish one of the following grounds as “Good Cause” in order to seek to evict a Tenant:

1. Non-Payment of rent, provided the rent due and owing did not result from a rent increase that was unreasonable; 
2. Tenant is violating a substantial obligation of their tenancy;
3. Tenant is committing or permitting a Nuisance;
4. Tenant’s occupancy is in violation of or causes a violation of law and the Landlord is subject to civil or criminal penalties;
5. Tenant is using or permitting the housing accommodation to be used for illegal purposes;
6. Tenant has unreasonably refused the Landlord access to the housing accommodation for the purpose of making necessary repairs or improvements required by law;
7. Landlord seeks to recover possession of a housing accommodation for the Landlord’s own personal use or their family members; 
8. Landlord seeks to demolish the housing accommodation;
9. Landlord seeks to withdraw a housing accommodation from the housing rental market; 
10. Tenant fails to agree to reasonable changes to a lease at renewal, including increases in rent that are not unreasonable, as long as the written notice of the changes to the lease were provided to the Tenant between 30 and 90 days prior to the expiration of the current lease.

Rental Increases:

Good Cause Eviction Law limits rental increases for nonexempt apartments to the lower of (a) 5% plus the annual percentage change in the Consumer Price Index (“CPI”) or (b) 10%.

Notices:

Landlords are required to append to or incorporate into any initial lease, renewal lease, predicate notice to a holdover or rent demand to a nonpayment proceeding this template notice.

IAI Rent Increase Amendments: 

1. Rent Stabilization Law § 26-511(c)(13), governing Individual Apartment Improvement (IAI) rent increases, as previously amended by the HSTPA, has been further amended to provides a permanent rent increase equal to 1/168th of the new cap of $30K, which equals $178.57 for buildings with 35 units or less; and, 1/180th for buildings with more than 35 units, which equals $166.67.   
2. $30K may be expended in a 15-year period beginning with the first IAI on or after 6/14/2019;
3. If there is a tenant in place, Landlord must obtain written consent from the Tenant at the time the IAI is undertaken in order to recover the costs;
4. $50K may be expended in a 15-year period beginning with the First IAI on or after 6/14/2019 if:
   1. the apartment was timely registered as vacant in 2022, 2023 and 2024 or 
   2. the apartment is vacant following a period of continuous occupancy of at least 25-years that occurred immediately prior to the commencement of such IAI;
   3. Landlord received prior certification to recover costs for necessary work from DHCR and immediately subsequent to the performance, Landlord submits proof of completed work to DHCR;
   4. Upon approval, a permanent rent increase equal to 1/168th of the new cap of $30K, which equals $178.57 for buildings with 35 units or less; and, 1/180th for buildings with more than 35 units, which equals $166.67.   
   5. A permanent increase will be equal to 1/144th of the new cap of $50K, which equals $347.22 for building with 35 units or less; and 1/156th for buildings with more than 35 units, which equals $320.51;
5. No owner will be eligible for this IAI if, within 5-years prior to filing such IAI, any unit in the building has been subject to a determination by DHCR or a Court for treble damages due to an overcharge, OR where a unit in the building has received a determination finding harassment.