Albany passes Universal Rent Stabilization “Good Cause Eviction bill”
On July 19, 2021 the Albany Common Council, roughly equivalent to the NY City Council, passed the “Good Cause Eviction Bill.” The legislation will prevent landlords from removing their tenants without first obtaining an order from an Albany City Court judge. Under the Good Cause Eviction statute, each tenant in the City of Albany will be entitled to a renewal lease and protection against a rent hike that is greater than 5%.
The bill lists only 10 justifiable reasons why a landlord can evict a tenant. It also requires landlords to justify any increase to the rent by 5 percent or more. According to the bill, landlords must offer a renewal to a tenant and the tenant must reject two separate renewal offers before a landlord can start the eviction process. The passing of this bill means that leases are no longer mutual agreements that each party has the right to freely discontinue at the expiration of the contract. Under the new bill, a tenant is permitted to stay for however long they chose and landlords must offer their property to the existing tenant.
The bill’s passage is a major victory for tenant advocates, who have been pushing for a statewide version of the Good Cause Eviction bill for the past three years. Efforts are underway to pass similar legislation in Rochester and Buffalo.
Canarie in the coal mine: This is a loud warning for owners of NYC Multifamily. If this law passes in NYC, it will materially change the way investors and current owners can use their properties as investment vehicles. This is tantamount to extending rent stabilization to all properties. The common council in Albany is more conservative and more republican leaning than NYC’s City Council. If this law can get passed in Albany, the thinking should be, it can very much be passed in NYC as well.
New York’s rent relief for struggling tenants finally makes first payments but at a slow pace. New York State has distributed just $117K in rent relief from the $2.7 billion pot despite applications being opened since June 1st. Qualified tenants may receive a maximum of 12 months’ worth of back rental and utility payments and up to three months in future rent.
The state's pandemic eviction moratorium is set to expire at the end of August, putting a deadline on getting aid to those in need. Despite the moratorium’s end, tenants are protected from eviction for an extended period once they complete an application for rental relief, even if it is still being processed or aid is still being distributed.
In efforts to speed up payments made, the state released a new application process for tenants and landlords seeking federal rental relief. The online >> application portal << updated on Tuesday, July 27 is expected to speed up the administration of federal funding for the 160,000 applicants waiting, according to Gov. Andrew Cuomo.
New York City Multifamily Sales Up 57% Y-O-Y in Q2 2021
Multifamily sales in New York City soared in the second quarter of 2021 as tenants returned to New York City and investor confidence swelled. The number of property sales and overall sales volume increased in most boroughs during the month of May and are up 57 percent from a year ago, according to Ariel Property Advisors. The 23 percent increase in # transactions and 158% increase in dollar volume for all of New York CIty Multifamily Sales are encouraging signs for investors and owners alike. Some Additional highlights include:
o May’s 2021 apartment lease signings in Manhattan quadrupled from same time last year to 9,491
o # of Properties Sold Increased 15% Year over year (YOY) in Brooklyn
o Sum total of value of properties sold increased by 33% YOY in Queens
Intro to Good Cause in Albany
Intro to Good Cause in Albany
Intro to Good Cause in Albany
Albany passes Universal Rent Stabilization “Good Cause Eviction bill”
On July 19, 2021 the Albany Common Council, roughly equivalent to the NY City Council, passed the “Good Cause Eviction Bill.” The legislation will prevent landlords from removing their tenants without first obtaining an order from an Albany City Court judge. Under the Good Cause Eviction statute, each tenant in the City of Albany will be entitled to a renewal lease and protection against a rent hike that is greater than 5%.
The bill lists only 10 justifiable reasons why a landlord can evict a tenant. It also requires landlords to justify any increase to the rent by 5 percent or more. According to the bill, landlords must offer a renewal to a tenant and the tenant must reject two separate renewal offers before a landlord can start the eviction process. The passing of this bill means that leases are no longer mutual agreements that each party has the right to freely discontinue at the expiration of the contract. Under the new bill, a tenant is permitted to stay for however long they chose and landlords must offer their property to the existing tenant.
The bill’s passage is a major victory for tenant advocates, who have been pushing for a statewide version of the Good Cause Eviction bill for the past three years. Efforts are underway to pass similar legislation in Rochester and Buffalo.
Canarie in the coal mine: This is a loud warning for owners of NYC Multifamily. If this law passes in NYC, it will materially change the way investors and current owners can use their properties as investment vehicles. This is tantamount to extending rent stabilization to all properties. The common council in Albany is more conservative and more republican leaning than NYC’s City Council. If this law can get passed in Albany, the thinking should be, it can very much be passed in NYC as well.
Venno Properties
Rent Relief Rollout in NYC
New York’s rent relief for struggling tenants finally makes first payments but at a slow pace. New York State has distributed just $117K in rent relief from the $2.7 billion pot despite applications being opened since June 1st. Qualified tenants may receive a maximum of 12 months’ worth of back rental and utility payments and up to three months in future rent.
The state's pandemic eviction moratorium is set to expire at the end of August, putting a deadline on getting aid to those in need. Despite the moratorium’s end, tenants are protected from eviction for an extended period once they complete an application for rental relief, even if it is still being processed or aid is still being distributed.
In efforts to speed up payments made, the state released a new application process for tenants and landlords seeking federal rental relief. The online >> application portal << updated on Tuesday, July 27 is expected to speed up the administration of federal funding for the 160,000 applicants waiting, according to Gov. Andrew Cuomo.
The Real Deal
New York City Multifamily Sales Up 57% Y-O-Y in Q2 2021
Multifamily sales in New York City soared in the second quarter of 2021 as tenants returned to New York City and investor confidence swelled. The number of property sales and overall sales volume increased in most boroughs during the month of May and are up 57 percent from a year ago, according to Ariel Property Advisors. The 23 percent increase in # transactions and 158% increase in dollar volume for all of New York CIty Multifamily Sales are encouraging signs for investors and owners alike. Some Additional highlights include:
Commercial Observer
Note: I originally wrote this is in August 2021