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  • Carl J. Muraco

GOOD CAUSE EVICTION: WHAT IS IT?

What is good cause eviction

Good Cause Eviction is a law that was passed on April 20, 2024 that affects many owners whom units were formerly free-market units but now as a result of the new law may now have restrictions on evictions and requirements for leases.

There are exemptions to the law which means that you may not be subject to this law.


DOES THIS LAW APPLY TO YOU:

 

GOOD CAUSE EVICTION along with numerous other laws and policy changes were enacted on April 20, 2024 in the new budget.  

Most importantly, if you own 10 units or less in your entire portfolio of properties located in New York these laws do not apply to your units.  

If the unit is rent stabilized or rent controlled, then the laws do not apply to said units. 

If the units are coops and/or condos then these laws do not apply to said units.  

New construction from 2009 and on shall be exempt for 30 years for said units.  

If you are the tenant of record of a unit and you wish to take back the unit from your subtenant so that you can use the unit yourself then this law does not apply for said unit.

 

WHAT DOES THIS MEAN?  

 

This means that if you are someone who fits into the above category then the new law will not apply as you are deemed "EXEMPT" from the law, there are more exemptions to the law that I will not go into at this time but if you have a questions as to whether or not your unit(s) will be affected feel free to email me directly.  If you are exempt then GCE does not apply and you can continue as if the laws have not changed for your units.  

 

WHAT IF I AM NOT EXEMPT?    

 

If the law does apply to your unit then many new notice requirements shall apply and my office is ready to comply with any and all new rules and laws, additionally you are restricted from starting eviction cases unless you have at least one of the following reasons to commence the eviction: 

***(Remember if you are a Small landlord (10 units or less in entire portfolio) or in one of the exempt categories listed above then these laws do not apply)

  1. nonpayment proceedings- when the tenant owes you rent;

  1. the tenant is in violation of a substantial obligation under their lease (after ten day notice to cure);

  1. the tenant is committing a nuisance and/or damages property and/or affecting other tenants;

  1. the unit has a vacate order on it;

  1. the tenant is using the premises for illegal purposes;

  1. the tenant has unreasonably refused access to the unit for repairs and/or inspection and/or to sell;

  1. the landlord seeks to use the unit for personal use (many more requirements for this one);

  1. the landlord seeks to demolish the housing accommodation

  1. the landlord seeks to withdraw the unit from rental market; and/or

  1. the tenant refuses to agree to a reasonable change to the lease provided the change is reasonable and provided proper notice was given.  

 

WHAT IS AN "UNREASONABLE RENT INCREASE"?

 

If your unit is covered by GCE then you must continue to give your tenant new leases and can only increase the lease for a "reasonable amount".  A rent increase shall be deemed reasonable as long as it is less than 10% or the CPI plus 5% whichever is less.  Rent increases for units that fall under GCE must not be "unreasonable".  A rent increase shall have a rebuttable presumption of being "Unreasonable" if the increase is above 10% or more than the CPI plus 5% , whichever is less.  With that being said, a landlord does have some exceptions to charge a rent increase over said amount but if challenged must demonstrate good reasons for the increase; the court  may consider  all relevant facts, including increases in expenses, insurance, property tax, gas, construction and so on.  There are many factors that will be considered and it will be subjective and determined by the court.    

 

ADDITIONAL REQUIREMENTS:

Units that fall under GCE shall be required to send specific notices along with leases, lease renewals, rent demands, notice of terminations, notices to cure and petitions and notice of petitions.  

Feel free to reach out if you have additional questions.  

 

My firm and I continue to monitor the laws and the case law as it is decided and enacted.  Any questions or concerns feel free to email me directly on this email. 

As always, feel free to call me directly at 718-938-9732 to discuss. 

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