Helping Tenants Have A Fair Chance at Affordable Housing

Governor Kathy Hochul today highlighted her support for New York City’s FARE Act, which will prohibit landlords from passing brokers’ fees onto tenants when the law goes into effect this June. The State filed an amicus brief to affirm that State law does not interfere with the tenant-protective FARE Act. The FARE Act complements Governor Hochul’s historic FY25 Enacted Budget that supports tenants and renters, including by enshrining in law landmark protections from price gouging and unfair eviction practices.

“New Yorkers deserve a fair chance at affordable housing, and the FARE Act advances that critical goal,” Governor Hochul said. “Renters should not have to face the burden of paying thousands of dollars up front for an apartment, especially when they often are not requesting the services. Come this June, renters will be able to keep their hard-earned money in their pockets which will help them afford to live in the greatest city in the world.”

New York City Councilmember Chi Ossé said, “I thank the Governor for her support. As New Yorkers already know, the lawsuit is a meritless attempt to delay relief for the renters of our city. It is bad-faith and will fail. Come summer, the abusive system of forced broker fees will end.”

The Fairness in Apartment Rentals Expense (FARE) Act prohibits landlords from passing the fees of brokers they hire onto prospective tenants in New York City. Brokers fees contribute to thousands of dollars in upfront costs that New York City tenants often must shoulder before being able to rent an apartment even when they have not requested the brokers' services. New York City is one of the only housing markets in the country where this practice is common.

The Governor also provided critical assistance, helping New York City renters access affordable homes in December 2024 by providing essential support to ensure the passage of “City of Yes for Housing Opportunity,” the most pro-housing zoning proposal in New York City history. As the city confronts a generational housing crisis with a 1.4 percent rental vacancy rate, the citywide rezoning will enable the creation of 80,000 new homes over the next 15 years and invest $5 billion, which will include $1 billion in State funding that the Governor has proposed in this year's budget, towards critical infrastructure updates and housing. The City of Yes proposal alone exceeds all the housing created from rezonings during any mayoral administration of the last 50 years, including all of the 12 years of the Bloomberg administration and all eight years of the de Blasio administration.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “For far too long, excessive brokers' fees have exacerbated the housing crisis by imposing undue financial barriers on individuals and families looking to rent an apartment. The FARE Act is a game changer for tens of thousands of renters who will find a whole new landscape in June that gives them a better chance at securing an apartment without having to worry about undue brokers' fees that were baked into a lease. We are thankful that Governor Hochul and our partners in New York City continue to work in concert to make our state more affordable and livable for all.”

Assemblymember Linda B. Rosenthal said, “Tenants are not revolving ATMs for big real estate. It’s simple: there is nothing in state law that requires tenants to cover the cost of their landlord’s real estate broker, and New York City's FARE Act makes clear that the landlord is responsible for the broker's fee. With one in four New Yorkers already struggling to stay financially afloat in the Big Apple, tacking on thousands of extra dollars in unnecessary fees is nothing more than an extra barrier to securing safe, stable housing. This law will undoubtedly put money back in the pockets of cash-strapped New Yorkers who already face increasingly unaffordable rents."

Governor Hochul’s Housing Agenda
Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on State-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners. In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 55,000 homes have been created or preserved to date.

The FY25 Enacted Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro-Housing Certification is now a requirement for localities to access up to $650 million in discretionary funding. Nearly 300 communities have been certified, including all five boroughs of New York City.