NYC Passes Landmark Fair Access to Rental Housing Act
New York City has enacted a groundbreaking law aimed at easing the financial burden on renters: the Fair Access to Rental Housing (FARE) Act. This important legislation, officially passed today, prohibits landlords from shifting the cost of broker fees onto prospective tenants. the act, which will take effect 180 days from its passage, is a major victory for renters struggling with the high cost of living in the city.
The FARE Act‘s passage comes after a surprising turn of events. Mayor Adams, despite his administration’s prior involvement in negotiations supporting the bill, ultimately chose not to sign it into law and voiced eleventh-hour opposition. This unexpected stance followed a period of collaboration between the Mayor’s office and the city Council.
“The Council continues to take action that makes housing and our city more affordable to New Yorkers, so they can remain in our communities,” said Speaker Adrienne Adams. “The Council is consistent in our focus on improving the lives of working- and middle-class families, and New Yorkers deserve a city government that will prioritize their needs—not undermine them. The Administration was fully engaged in negotiations with the Council to ensure triumphant passage of this law throughout the legislative process.We fully expect Mayor Adams to implement it without delay to reinforce his pledge to support working-class New Yorkers.”
The impact of this legislation is expected to be substantial. Many New Yorkers face exorbitant upfront costs when securing a new apartment, often exceeding $13,000, a figure that includes substantial broker fees, even when the tenant didn’t directly engage the broker’s services. The FARE Act directly addresses this inequity by assigning obligation for broker fees to the party that hired them – the landlord.
“After to many decades under an unfair and suffocating system, new Yorkers can be free from the forced broker fee once this new law takes effect in June 2025,” said council Member Chi Ossé. “the era of the captive tenant may finally be over. This win belongs to all of us – but we must ensure that the Mayor’s Administration adequately implements and enforces the law after his puzzling last-minute statements that contradicted the work of his administration in negotiation to support it. I thank Speaker Adams and the Council for their partnership in bringing the FARE Act to law, and also the dozens of unions and advocacy groups whose support was indispensable. I also thank the people of New York, who comprised the popular grassroots movement that was necessary to overcome the immense political and financial resources of the real estate lobby.”
The need for the FARE Act is underscored by the significant number of rent-burdened households in New York City.Over half of city households spend more than 30% of their income on rent. Adding to this financial strain are the substantial moving costs, including first month’s rent, security deposits, application fees, and background checks. The average New Yorker moving in 2023 faced nearly $13,000 in upfront expenses, highlighting the urgency for reform.
The FARE Act represents a significant step towards creating a more equitable and affordable rental market in New York City. While the Mayor’s last-minute opposition raised eyebrows, the law’s passage offers a beacon of hope for countless New Yorkers struggling to find and maintain stable housing.
NYC’s New Law shifts Burden of Broker Fees: A Win for Renters?
New York City has made a meaningful move to ease the financial burden on renters with the passage of the Fair Access to Rental Housing (FARE) Act. This landmark legislation, which prohibits landlords from passing broker fees onto potential tenants, marks a major victory for affordability advocates in a city known for its sky-high housing costs.
interview with Housing Policy Expert, Dr. Alex Rivera
Senior Editor: Dr. Rivera, thank you for joining us to discuss the newly passed FARE Act. NYC renters will soon see a shift in how broker fees are handled.Can you explain what this law means in practical terms?
Dr. Rivera: Sure,essentially the FARE Act puts the obligation for paying broker fees squarely on the shoulders of the party that hires the broker – which is typically the landlord. It eliminates the current practice where tenants, who may not even have sought out the broker’s services, were often forced to absorb these considerable costs.
Senior editor: The cost of moving in NYC is already astronomical for many.How significant of an impact do you think this legislation will have on renters?
Dr. Rivera: I believe the impact will be substantial. We certainly know that over half of city households are rent-burdened, meaning they spend more than 30% of their income on rent. Adding thousands of dollars in upfront moving costs, including broker fees, can push many families to the brink. Eliminating this burden will free up crucial resources for essential expenses like food adn healthcare.
Senior Editor: Interestingly, despite initial support, Mayor Adams ultimately chose not to sign the FARE Act. What were the reasons behind this last-minute opposition, and what does this mean for the law’s implementation?
dr. Rivera: The Mayor’s stance took many by surprise, given his governance’s earlier involvement in supporting the bill. It’s unclear precisely why he chose to withhold his signature. However, some speculate it may be due to pressure from powerful real estate lobbying groups. Regardless, the law still passed through the City Council and will be enacted. What remains to be seen is how diligently the Mayor’s office will enforce it.
Senior Editor: The implementation of this new law will be closely watched. Do you anticipate any potential challenges in its enforcement?
Dr. Rivera: There may be some initial hurdles.
landlords accustomed to passing on these fees might resist the change. it will be crucial for the city to provide clear guidelines and robust enforcement mechanisms to ensure landlords comply with the new law.
Senior Editor: The FARE Act marks a significant step towards a fairer rental market in NYC. What other policies do you think could further address the affordability crisis in the city?
Dr. Rivera: The FARE Act is a crucial piece of the puzzle, but there’s still much work to be done. We need to explore policies like expanding rent regulations, incentivizing the advancement of more affordable housing, and increasing financial assistance programs for low-income renters. A multi-pronged approach is necessary to address the complexities of the housing crisis.
Senior Editor: dr. Rivera, thank you for sharing your insights on the FARE Act and its potential impact.
Dr. Rivera: My pleasure, it’s a crucial conversation to be having.
