May 2026
Weekly Report for May 29, 2026
Enacted State Budget summary
On Wednesday, May 27th the State Legislature completed passage of the 2026-2027 state budget, nearly 2 months after the April 1stdeadline. The final state spending plan totals approximately $268.5 billion. The budget includes substantial reforms to the State’s Environmental Quality Review Act (SEQRA), which NYSAR advocated for on our annual Lobby Day. Additionally, several initiatives that NYSAR opposed were excluded from the enacted budget, including proposals to: tax residential real estate purchased with cash; levy a recurring annual property tax on high value second homes outside of New York City, and authorize additional real estate transfer taxes in the cities of Buffalo and Albany. The final budget does include language to establish a “pied-a-terre tax” in New York City, beginning July 1, 2026. Several initiatives impacting insurers, energy utilities and ratepayers were also included in the enacted budget. A NYSAR summary of relevant initiatives can be found here.
NYSAR priority approved in State Budget – removes major barrier to new housing development
Developers looking to build new housing in New York State may now receive exemptions from an onerous permitting step in order to unlock the construction of more homes and apartments across the state. NYSAR was a strong supporter of changes to New York State’s Environmental Quality Review Act (SEQRA) which was included in the state budget this week. In addition to being a NYSAR Lobby Day priority, REALTORS® from all regions of the state answered NYSAR’s Call for Action urging lawmakers to include SEQRA changes in the state budget. Changes to SEQRA exempt new housing construction of up to 300 units outside of New York City from environmental review and exempt new housing construction of up to 500 units within New York City from review. To be exempt from review, these projects must be connected to a public sewer system and be located at a previously disturbed site, while also meeting other criteria depending on the size and location of the project. Read more here.
REALTOR® Call For Action: Oppose Rent Control Expansion
State lawmakers are scheduled to conclude business for the year on June 4. During these final days, however, state lawmakers are considering passing legislation known as the Rent Emergency Stabilization for Tenants or REST Act, which would streamline the ability of municipalities outside of New York City to opt into a system of rent control. Learn more and Take Action Now: Tell state lawmakers to oppose the REST Act here.
Weekly Report for May 22, 2026
State lawmakers look to expand rent control outside of NYC
Democrats in the state legislature are working to advance a bill that would make it easier for cities, towns and villages to adopt rent control outside of New York city. The bill, known as the Rent Emergency Stabilization for Tenants or REST Act (S.4659-C/A.4877-C), would allow municipalities to bypass the current rental vacancy survey requirement to find a rental vacancy rate of 5 percent or less before declaring a housing emergency in order to take steps to enact local rent control measures. NYSAR strongly opposes the legislation and will be launching a Call for Action in the coming days. Read more here.
Voting begins on state budget
State lawmakers began passing portions of the state budget this week, passing three out of the ten budget bills. The state legislature approved education spending and bills dealing with public protections and debt services. More controversial bills dealing with tax increases and SEQRA reforms are expected to be taken up next week. This will be latest state budget in 16 years. Read more here.
Proposed tax on all-cash purchases of homes could be dropped from state budget
It is being reported that state lawmakers are considering omitting from the state budget a proposed new tax on all-cash purchases of homes over $1 million in New York City and elsewhere in the state. NYSAR strongly opposes the new tax and sent a memorandum in opposition to all state legislators earlier this week. The state still plans, however, to enact a new pied-a-terre tax on second homes with a value over $5 million in New York City. NYSAR continues to oppose the pied-a-terre tax. REALTORS® can still Take Action and urge state lawmakers to oppose the measure by clicking here.
NYSAR and NAR Support Legal Challenges to New York Rent Stabilization Law and City Land Use Fees
The National Association of REALTORS® recently joined the New York State Association of REALTORS® and a coalition of industry partners to ask the U.S. District Court for the Southern District of New York for permission to file an amicus brief in support of housing providers challenging New York’s Rent Stabilization Law. A ruling on the request to file the brief is pending before the court. The case centers on questions related to how rent-stabilization requirements affect the use and management of rental housing, with a specific focus on the issue of vacant units. Read more here. NYSAR and NAR also filed an amicus brief supporting a group of New York City property owners challenging a city land use fee, otherwise known as an exaction. NYSAR and NAR warn that allowing governments to impose significant fees without rigorous legal scrutiny could set a troubling nationwide precedent.
Weekly Report for May 15, 2026
Tell State Lawmakers to Oppose New Tax on Second Homes
State lawmakers are continuing to negotiate a proposed annual tax on second homes in New York City – in addition to existing property tax obligations. Details of the proposal remain uncertain, however it is being reported that the tax would range from 0.8-1.05 percent and apply to one-to three-family homes with a “market value” of at least $5 million as assessed by the city. For condos and coops, the tax would be imposed in two phases: Over the next two years, second homes with a “market value” (rather than actual sales value) of $1 million or more would face a tax surcharge between 4 percent and 6.5 percent. The second phase adds more complications to an already complex city tax system. After the initial two years, the city and state would then change the metric to be partly based on the estimated sales values of condos and coops which would require adding a new valuation system.
Imposing this so-called “pied-a-terre” tax on second homes is short-sighted and will discourage investment while diminishing revenue that New York State and New York City rely on.
CLICK HERE AND TAKE ACTION NOW
NYC Mayor releases $124 billion Executive Budget
On May 12, New York City Mayor Zohran Mamdani released a $124.7 billion 2027 Executive Budget. The executive budget does not include a prior proposal from the Mayor that would have raised property taxes by 9.5 percent. The city’s budget relies heavily on state assistance and projected cost saving measures to close a projected $12 billion budget gap over the next two years. Mayor Mamdani is also proposing a reduction in the Unincorporated Business Tax credit, and projects $500 million in new revenue from the proposed annual tax on high wealth second homes being negotiated currently in the state budget. The executive budget also includes $4 billion in capital funding for the Department of Housing Preservation and Development over 5 years for affordable housing. Negotiations with the City Council and public hearings will begin leading up to the June 30 city budget adoption deadline. Read more here.
1 percent tax proposed on all cash purchases of NYC homes over $1 million
State lawmakers appear to have quietly negotiated a new tax on certain New York City homes that are purchased with all cash. The proposed 1 percent tax on cash purchases would apply to homes that sell for $1 million or more in the five boroughs. For the first half of 2025, there were nearly 11,000 homes bought for cash in New York City, according to estimates, while the median sales price for cash purchases was $939,000. Read more here.
Weekly Report for May 8, 2026
NYSAR Call for Action: Say No to More Real Estate Taxes
State lawmakers continue to consider a state budget proposal that would create a new real estate tax or surcharge on high-value second homes in New York State. NYSAR argues that imposing this so-called “pied-a-terre” tax is short-sighted and does not take into account the significant revenue directed to localities and New York State, which expensive second homes generate by way of property taxes and other forms of real estate taxes, such as real estate transfer taxes, state “mansion taxes”, and mortgage recording taxes. Discouraging second home sales across the state will diminish revenue that New York State and localities rely on. Take action now and urge your state lawmakers to oppose a “pied-a-terre” tax.
No agreement on state budget
On May 7, Governor Kathy Hochul announced a general framework agreement on the state’s $268 billion budget, however, leaders of the legislature refuted those claims. Details on several major policy changes remain unclear, including an annual pied-a-terre tax on high-value second homes, reforms to the state’s environmental review process for certain housing projects, changes to the state’s auto insurance laws, and amendments to the state’s 2019 climate law and emission reduction goals, among others. NYSAR continues to express its support for changes to the state’s environmental review process to expedite much-needed housing development, as well as its opposition to a pied-a-terre tax in New York City and statewide. Read more here.
NYC Rent Guidelines Board considers rent freeze despite rise in landlord expenses
On May 7, the New York City Rent Guidelines Board approved a preliminary vote to decide next year’s allowable rent increases on rent regulated units in the city. The preliminary range was between 0 to 2 percent for one-year leases and between 0 to 4 percent for two-year leases. Mayor Zohran Mamdani, who appointed six of the nine members of the board, has promised a rent freeze during his mayoral campaign. An April report detailed significant increases in landlord expenses to operate and maintain rent regulated units. A final vote on the proposed rent increases is expected on June 25. Read more here.
Weekly Report for May 1, 2026
NYSAR: Real Estate Licensees should not discuss crime or school quality with consumers
On April 24, the U.S. Department of Housing and Urban Development (HUD) published a “Dear Colleague” letter to real estate licensees advising them that “real estate professionals may lawfully discuss neighborhood crime rates and school quality with clients” and doing so would not violate federal fair housing laws. Although it is the opinion of HUD that such discussions do not violate federal fair housing laws, such discussions would still be subject to NYS law and licensees may be held liable if they engage in such discussions. Read more here.
State lawmakers near deal on SEQRA reforms
Reports indicate that Governor Hochul and legislative leaders are nearing a deal to reform the lengthy State Environmental Quality Review process for certain housing and infrastructure projects, with the hopes of expediting more housing development across the state. NYSAR strongly supports reforming the outdated environmental review process for housing projects and launched a REALTOR® Call for Action in April urging for its inclusion in the state budget. Support for the reforms was also a Lobby Day Priority for REALTORS® when meeting with their lawmakers in Albany on April 21. NYSAR is continuing to monitor and engage on the issue. Read more here.
Proposed tax increases still being negotiated in state budget
As state lawmakers continue to negotiate a late state budget, New York City officials are calling on the state to reduce the Pass Through Entity Tax credit, which provides an optional tax that certain businesses can pay in order to get a credit on state income tax returns. The city estimates the reduction in credit would generate $1 billion each year. Governor Hochul has vowed to oppose any changes to the PTET credit and instead is supporting an annual tax on high-value second homes in New York City. Some upstate lawmakers are urging that the pied-a-terre tax be expanded statewide. NYSAR strongly opposes any “pied-a-terre” tax and will be launching a Call for Action opposing the budget measure.
Wilson defeats Democratic Socialist in NYC Council Special Election
Carl Wilson has declared victory in a New York City Council special election held on April 28 to replace Erik Bottcher who was recently elected to the State Senate. Democratic Socialist candidate Lindsey Boylan, who was supported by Mayor Zohran Mamdani, conceded the race. Wilson was endorsed by City Council Speaker Julie Menin. Wilson must run again in a likely primary election in June and general election in November to retain the seat. Read more here.