New York recently passed legislation called the Good Cause Eviction Law. The Law dramatically changes the rights and obligations of both landlords and residential tenants in New York City by capping rent increases, limiting grounds for eviction, and requiring lease renewals to be provided.
What is considered a “Good Cause” for eviction?
Landlords are now prohibited, subject to certain exceptions, from evicting any residential tenant except for “Good Cause”. Under the legislation, Good Cause grounds for eviction include the following:
- Non-payment of rent, unless the rent is deemed “unreasonable”;
- Malicious or grossly negligent substantial damage to the premises or building;
- Illegal use of the premises;
- Unreasonable refusal of access for necessary repairs;
- Failure to agree to reasonable changes to a lease agreement;
- Violation of a substantial obligation of the tenancy;
- Nuisance;
- If the Landlord wishes to occupy the unit as their principal residence;
- Demolition of the Premises;
- Withdrawal of the premises from the rental housing market; and
- If the Tenant’s occupancy violates the law and an order to vacate has been issued.
What are the exceptions to “Good Cause” Eviction?
Even though the Legislation greatly limits the grounds for eviction, numerous exceptions were created that narrow when a “Good Cause” Eviction applies. The following exceptions include:
- Residential units with a monthly rent that is greater than 245% of the fair market rent, as published annually by the United States Department of Housing and Urban Development (HUD);
- Units owned by small landlords, who own less than ten units in New York State;
- Owner-occupied premises that contain less than ten units;
- Residential units already subject to rent regulation according to local, state, or federal law, rule, or regulation;
- Residential units that are required to be affordable for certain income levels under statutes, regulations, restrictive declarations, or regulatory agreements with a local, state, or federal government entity;
- Residential units on or within a building that is owned as a condominium or cooperative, or on or within a building that is subject to an offering plan submitted to the office of the attorney general;
- Evictions involving Tenants that reside in Condominiums or Co-Operatives;
- Evictions involving Tenants that reside in Seasonal use units;
- Evictions involving Tenants that reside in Manufactured homes;
- Evictions involving Tenants that reside in Hotel Rooms;
- Evictions involving Tenants that reside in Units within Hospitals; and
- Buildings for which a Temporary Certificate of Occupancy or Permanent Certificate of Occupancy was issued after January 1, 2009, for thirty years.
Does the Law make any other changes?
In addition to the above, the Good Cause Eviction Law puts a cap on rent increases for residential units. Under the new law, a rent increase is presumed unreasonable if it is above the inflation index or greater than 10 percent, whichever is lesser.
The inflation index is defined as 5% plus the annual percentage change in the consumer price index (“CPI”) unless a higher increase can be justified with proper documentation and reasoning.
In addition to the above, the Good Cause Eviction Law puts a cap on rent increases for residential units. Under the new law, a rent increase is presumed unreasonable if it is above the inflation index or greater than 10 percent, whichever is lesser.
The inflation index is defined as 5% plus the annual percentage change in the consumer price index (“CPI”) unless a higher increase can be justified with proper documentation and reasoning.
Does this Law apply to other areas outside of New York City?
While the Good Cause Eviction Law applies only to New York City, other villages, towns, or cities state-wide may choose to opt in.
Have questions about the Good Cause Eviction Law?
Clair Gjertsen & Weathers PLLC continues to monitor this ever-changing landscape. For additional questions regarding the implications of these decisions and related landlord/tenant issues, we invite you to contact Clair Gjertsen & Weathers PLLC by calling 914-472-6202. We look forward to hearing from you and assisting you in navigating this new law.