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Category: Multifamily Tags: Good Cause Eviction, New York City

Good Cause Eviction in New York City

A recent law passed in New York City has significant implications for multifamily property owners, especially those dealing with unregulated apartments. The law, known as Good Cause Eviction (GCE), was passed on April 20, 2024, and is already in effect. The following provides insights from attorney Alexander Fotopoulos, Esq of Kourkoumelis & Fotopoulos, PLLC.


In a memo addressing the key aspects of GCE, Attorney Fotopoulos outlines its primary functions:

  1. Rent Increase Limits: GCE places a cap on renewal increases, limiting them to the lower of either 5% plus the percentage change in the Consumer Price Index (CPI) or 10%.
  2. Bases for Lease Non-Renewal: The law also restricts the reasons for an owner’s refusal to renew a lease, imposing specific obligations and limitations.


Main Takeaways, Obligations, and Limitations Imposed by GCE

Rent Increase Threshold: Owners can raise rents on renewal to the lesser of 10% or 5% + CPI without triggering GCE protections. For example, an increase of 7.5% would not fall under GCE provisions.


Reasonableness Presumption: Renewal increases exceeding the prescribed threshold are considered unreasonable but can be justified with evidence of reasonableness. This includes demonstrating landlord costs and property conditions.


Good Cause Requirement: Owners of unregulated apartments must show “good cause” for non-renewal. This includes reasons like failure to pay rent, lease violations, nuisances, illegal usage, or landlord’s personal use of the apartment.


Notice Requirements: GCE Law Notices must be attached to vacancy and renewal leases, as well as legal proceedings initiated by owners.


Certain apartment types are exempt from GCE, such as those under rent stabilization, owned by small landlords (with fewer than 10 units), or occupied by superintendents. However, the law introduces nuanced considerations, like the definition of “demolish” concerning lease termination.


Government officials are anticipating further guidance from courts and housing authorities; therefore, it is crucial for multifamily property owners in NYC to engage legal professionals to navigate the intricacies of Good Cause Eviction.


This new law reflects ongoing shifts in landlord-tenant dynamics, emphasizing the need for informed legal counsel in managing multifamily properties in New York City. Stay updated as additional details unfold in the coming days and weeks.


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