NY State Files Legal Brief in Favor of NYC’s FARE Act
Governor Hochul recently showed support for New York City’s FARE Act, a law aimed at easing the financial burden of renting by requiring owners to cover broker fees when they hire the broker. On April 3, her administration filed an amicus brief urging the court to uphold the law and emphasizing that the FARE Act does not conflict with existing state regulations. And in a public video with Councilmember Chi Ossé, the bill’s sponsor, the governor stated, “These broker fees? They should end forever.”
What you need to know: The Fairness in Apartment Rental Expenses (FARE) Act was passed by the New York City Council on Nov. 13, 2024. It prohibits owners from passing broker fees onto tenants when the broker exclusively represents the owner. Instead, the party hiring the broker will bear the responsibility for paying these fees.
The law aims to alleviate financial burdens on renters, who often face steep upfront costs, including broker fees. The state’s amicus brief argues that the law does not conflict with existing real estate statutes and affirmed the city’s authority to pass tenant protection measures like this one. Hochul has been vocal in her support, stressing that renters shouldn’t be forced to pay for broker services they never asked for.
At the same time, the Real Estate Board of New York (REBNY) is actively challenging the law in court, arguing that it’s preempted by state law. That legal question remains unresolved for now, as a federal judge has yet to issue a ruling on REBNY’s request to halt the law’s enforcement.
The bottom line: Governor Hochul and the State of New York are firmly backing the FARE Act, both politically and legally. If the courts don’t intervene, the FARE Act is scheduled to take effect in mid-June 2025. Once in place, owners who fail to comply with the new rules could face civil penalties starting at $1,000, with higher fines for repeat violations.
