Apartment hunters are ready to embrace the FARE Act, NYC’s new rental law going into effect on Wednesday, June 11th.
The legislation shifts the financial responsibility of the broker fee to the hiring party, rather than the potential renter. In a city where the average rent surpasses the rest of the country by 149%, any little bit of reprieve helps. However, there are parties that aren’t necessarily looking forward to this new law.
If you’re thinking about searching for a new place to call your own, here’s what’s going on with the FARE Act and the parties pushing back on its implementation.
Will the Fare Act, NYC’s new law on broker’s fees, be rolled back?
The FARE Act from Council member Chi Ossé passed in the City Council in November 2024, much to renters’ delight.
“We just voted to kill forced broker fees in New York City,” Council member Chi Ossé said on Instagram last fall. “Tenants are done paying fees to brokers they never wanted, nor hired, for apartments they found themselves.”
One month later, the Real Estate Board of New York filed a lawsuit against the FARE Act and cited that it violates constitutional free speech and contract rights.
Should a judge decide to pursue this lawsuit, which at this point in time is not likely, the FARE Act’s implementation could be paused. However, brokers and the Real Estate Board of New York are anticipating things to move forward as planned on June 11th.
According to a statement on NYC 311, the city will be enforcing the law and penalizing those who do not comply. A statement read: “The Department of Consumer and Worker Protection (DCWP) will enforce this law. Any person who violates this bill would be subject to a civil penalty or civil action.”
For more on the law, StreetEasy experts revealed predictions for what’s ahead in the rental market.
Should you want a few additional tips for finding a place to call home in NYC, explore our expert-backed tips for winning an affordable housing lottery and utilize new tools, like NYC’s first-ever rent stabilized alert system and the new app that applies to housing lotteries for you.