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April 2024

Weekly Report for April 26, 2024

NYSAR Statement on enacted State Budget
NYSAR applauds the new state budget as a victory for REALTORS® because it includes multiple incentives for residential development across New York State. We are hopeful this helps mitigate the historically and chronically low inventory of homes for sale and rental units. The budget also includes additional protections for renters with significant improvements over earlier proposed draconian tenant eviction rules. The so-called “good cause” provisions now include an “opt-in” provision outside of New York City, a rent increase cap of 10% or 5% plus CPI, whichever is lower, and exemptions for smaller property owners.

Not included in the state budget is NYSAR’s first-time homebuyers’ incentive or our co-op purchase transparency bill. NYSAR will focus its advocacy during the remaining days of this year’s legislative session on these and other high priority REALTOR® issues. NYSAR thanks the more than 400 members who came to Albany on March 27 to advocate on many of the topics addressed in the new state budget.  Their voices made a difference in the outcome.

You can find a full summary of housing-related measures included in the enacted 2024-25 State Budget here.

State Budget addresses squatters
Language included in the enacted State Budget changes state law explicitly excluding “squatters” or those who reside on properties without permission from the definition of a tenant. The modified law now makes it easier for law enforcement to intervene in squatting cases. Offenders were previously protected from immediate arrest and homeowners were forced to take the squatters to court in order to evict them. Read more here.

Court Grants Preliminary Approval of NAR Settlement – MLSs and brokerages seeking to be released under the settlement agreement must act by June 18.
On Tuesday, the U.S. District Court for the Western District of Missouri granted preliminary approval of the National Association of REALTORS®’ proposed settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The plaintiffs’ filing initiated the 60-day period during which all REALTOR®-owned MLSs, brokerages with total residential transaction volume above $2 billion in 2022 and non-REALTOR® MLSs that want to be covered by the settlement must act. The deadline to submit the opt-in agreements is June 18. Read more here.


Weekly Report for April 19, 2024

State Legislature begins passage of State Budget; “conceptual agreement” on housing

On April 15, Governor Kathy Hochul announced a conceptual agreement on the state’s 2025 fiscal budget. Nearing three weeks past the on-time April 1 budget deadline, issues such as housing, education funding and healthcare have delayed budget negotiations between state lawmakers. At the time of this writing, 3 out of the 10 budget-related bills have been introduced. The final budget bills containing housing-related measures have not yet been introduced however are expected to include the following:

Statewide

  • Creation of a statewide tax incentive for multi-family housing.
  • $650 million in discretionary funds for municipalities designated as “Pro-Housing Communities.”
  • Providing incentives for communities to allow accessory dwelling units (ADUs).
  • $500 million towards development of up to 15,000 housing units on state-owned land.
  • Protecting homeowners from deed theft.

“Good Cause” Eviction parameters (not yet finalized as of 4/18/24)

  • Would expire in 2034.
  • Would apply to New York City with the option for cities, towns and villages to adopt.
  • Would exclude “squatters” and non-paying roommates from the definition of a “tenant.”
  • Would exempt rent-stabilized units, condos and coops.
  • Would provide a 30-year exemption for new construction, beginning with buildings built in 2009.
  • Would exempt landlords with a portfolio of 10 units or less and owner-occupied buildings with 10 units or less.
  • Would exempt apartments that are 245 percent or more of fair market rent.
  • Would cap annual rent increases at 5 percent plus CPI, not to exceed 10 percent, and would not apply at vacancy.
  • Would provide additional reasons for evictions (in addition to those included in S.305/A.4454) to include “good faith” removal from market and “good faith” substantial rehab of apartment.

New York City

  • Creating a new 485x tax abatement for construction of affordable housing (421a replacement).
  • Extending for 6 years the expired 421a incentive for vested projects already in the pipeline
  • Making it easier to convert unused office space into affordable housing
  • Raising the residential floor area ratio (FAR) cap to increase density (current law is 12:1)
  • Raising the cap on rent increases for individual apartment improvements (IAIs) for vacant units in rent regulated buildings (current law caps IAIs at $15,000 over 15 years or approximately $83/month)

Save the Date: NYSAR Lobby Day 2025
NYSAR’s annual Lobby Day in Albany has been set for Tuesday, April 29, 2025, in the Empire State Plaza Convention Center. The new venue is a larger space just down the hall from where this year’s Lobby Day took place.

NYC Council bills introduced to address concerns with Local Law 97

New York City Councilmember Linda Lee recently introduced a package of bills (Int. 768, Int. 769 and Int. 772) to amend the City’s Local Law 97, which requires large buildings to decarbonize, by further delaying penalties and raising emissions limits for thousands of buildings. The bills would provide relief to coop and condo owners who have raised concerns with costs of cutting emissions. Read more here.


Weekly Report for April 12, 2024

Take Action – Tell state lawmakers to oppose “Good Cause” Eviction in the State Budget
The State Legislature and Governor Hochul continue to negotiate contentious parts of the State Budget, including housing proposals to impose “good cause” eviction measures. Please tell state lawmakers to oppose any form of “good cause” eviction as it would only worsen the current housing crisis throughout the state; and instead, urge state lawmakers to include measures in the State Budget to incentivize more construction of new and affordable housing and help future homeowners by establishing the New York First-Time Homebuyer Savings Account Program. Take Action here.

NYSAR urges legislative leaders to oppose “good cause” eviction
This week, NYSAR issued a letter urging Governor Kathy Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie to oppose any form “good cause” eviction during ongoing State Budget negotiations. Joining the letter was the Business Council of New York State and the New York State Builders Association. State lawmakers have passed three budget extenders so far following the April 1 fiscal deadline as housing remains the main point of contention. Read NYSAR’s full letter here.

Save the Date: NYSAR Lobby Day 2025
NYSAR’s annual Lobby Day in Albany has been set for Tuesday, April 29, 2025, in the Empire State Plaza Convention Center. The new venue is a larger space just down the hall from where this year’s Lobby Day took place.

Bills introduced to address squatters issue
State lawmakers this week introduced legislation to help address New York’s growing issue dealing with squatters. State Senators Jessica Scarcella-Spanton and John Liu each have bills (S.8995 and S.8996) seeking to change state law clarifying that a squatter is not entitled to tenant protections and can be evicted. Read more here.


Weekly Report for April 5, 2024

Housing negotiations continue to delay State Budget
With no final budget agreement, state lawmakers Thursday approved a second budget extender to keep state government running through Monday. The Legislature is expected pass an additional extender Monday as budget negotiations continue. Work towards an agreement on housing and education funding are the main focal points. Reports indicate that a housing deal could include allowing larger rent increases for landlords of vacant rent-stabilize apartments when renovating units, increasing limits on density in residential buildings in NYC, creating a new tax abatement program for housing developers in NYC, and a compromise on “good cause” eviction measures which could allow annual rent increases up to 10 percent and exempt new construction. A final housing deal has not been reached, however, and negotiations remain ongoing. Read more here.

Take Action: Tell Albany lawmakers to oppose “good cause” eviction
Tell Albany lawmakers to oppose the inclusion of “good cause” eviction legislation in the state budget. The measure would impose de facto rent control statewide and require property owners to offer lease renewals in perpetuity except under very limited circumstances. Learn more and Take Action at Homeowners for an Affordable NY here.

NYSAR is a partner of the Homeowners for an Affordable NY coalition, which is comprised of real estate professionals, property owners and tenants.

NAR Urges GSEs and regulators to confirm support for buyer financing
NAR along with the Mortgage Bankers Association (MBA) sent a letter to the Federal Housing Finance Agency, Federal Housing Authority, Fannie Mae, and Freddie Mac seeking confirmation that homebuyers will continue to have access to mortgage credit after the proposed settlement in the Burnett et al and Moehrl et al cases is complete. Specifically, NAR and MBA asked the regulators and GSEs to confirm that the custom of excluding seller’s payment of commissions for buyer’s agents will continue to be excluded from the limits on Interested Party Contributions. Read more here.