On April 20, 2024, Governor Hochel signed the Good Cause Eviction (GCE) law into effect.
DISCLAIMER: This statement does not constitute legal advice. Any tenant who wants to know how GCE applies to their apartment lease should contact a lawyer. GTA does not provide legal advice. This statement is for informational purposes only.
The GCE law provides that, for covered apartments, the landlord cannot evict a tenant without “good cause.” Under the law, the landlord is effectively required to offer renewal leases with rent increase that are not “unreasonable.” A rent increase is presumed unreasonable if it is above the inflation index or 10%, whichever is lower. For New York City, the inflation index is defined as 5% plus the annual percentage change in the consumer price index (CPI) for all urban consumers for all items as published by the United States Bureau of Labor Statistics for New York-Newark-Jersey City. For 2024, this CPI is 3.82%, so, absent extraordinary circumstances, rent increases in covered apartments are limited to 8.82% in 2024.
The GCE law applies to market rate tenants in all apartments in New York City buildings built before 2009 such as Gateway with very limited exceptions. One exception is the so-called “Luxury Exemption” where the apartment’s rent (before any increase on renewal) exceeds certain thresholds, as published by the New York Division of Housing and Community Renewal (DHCR). On May 4, 2024, DHCR published the following thresholds – if an apartment’s rent is at or below these numbers, the apartment should generally be covered by GCE:
$5,846 – studio
$6,005 – 1-bedroom
$6,742 – 2-bedroom
$8,413 – 3-bedroom
GTA believes these published thresholds may be incorrect, and is seeking clarification on that issue. For now, however, these are the thresholds that DHCR says apply.
The GCE limitations on renewal rent increases became effective April 20, 2024. Any market rate tenant whose renewal lease became effective on or after April 20, 2024 should review their renewal offer for applicability of and/or compliance with GCE.
The GCE law provides tenants with other protections beyond the limits on rent increases. Many law firms and tenant advocacy groups have published summaries of the GCE law. Plugging “New York good cause eviction” into one of the major search engines will generate links to additional information. One useful source is: https://legalaidnyc.org/get-help/housing-problems/what-you-need-to-know-about-new-yorks-good-cause-eviction-law/
