Gov. Kathy Hochul and top state lawmakers reached a housing agreement that allows tenants in market-rate units in New York City to challenge lease hikes of more than 10% in housing court. The deal also aims to increase the production of new and affordable housing in the city by lifting a decades-old state law that restricts the density of buildings in Manhattan. The preliminary agreement was struck by Hochul, Assembly Speaker Carl Heastie, and State Senate Majority Leader Andrea Stewart-Cousins, setting the stage for further discussions and negotiations.
The agreement includes provisions that would allow tenants facing eviction to challenge rent hikes exceeding the rate of inflation plus 5%, or 10% overall. Developers would receive a tax break for setting aside 20-25% of apartments in new buildings for middle-class families, potentially providing relief for families earning around $90,000-$113,000 annually. It also aims to expedite the conversion of empty office towers into housing, revitalizing areas like Midtown and the Financial District in the wake of the pandemic and remote work trends.
The proposal, known as “Good Cause,” would require landlords to offer automatic lease renewals to tenants who are up-to-date on their payments, helping to prevent retaliation against tenants for reporting issues in their units. The legislation has been a key demand from lawmakers aligned with the Democratic Socialists of America and other progressive groups. Developers sought exemptions for new construction, while small landlords pushed for exceptions for small buildings as negotiations continued.
The agreement also includes a provision allowing landlords to increase the amount spent on renovating units and pass on the costs to tenants, raising the cap from $15,000 to $30,000. While landlords scored this victory, some tenant activists expressed frustration with the concessions made to landlords, including Cea Weaver, the Director of Housing Justice for All, who was arrested earlier in the week for protesting against potential concessions. Developers also voiced concerns about the outcome, emphasizing the need to address the housing crisis in the city through policies that create more homes and maintain existing ones.
The housing deal represents a significant step forward in the state budget negotiations that have been ongoing past the deadline, providing momentum for other budget discussions. The agreement addresses key issues related to tenant protections, affordable housing production, and building density restrictions, paving the way for further reforms and initiatives to support housing stability and affordability in New York City. As details of the plan continue to emerge, stakeholders will assess the impact of the agreement on various aspects of the housing market and advocate for additional measures to address the city’s ongoing housing challenges.
