What to Know
- The New York City Council will hold a vote on Wednesday on the Fairness in Apartment Rentals Act, a bill that would end broker fees for tenants.
- If passed and signed by the mayor, the legislation would require the person who hires a broker to pay their fees.
- Supporters say the FARE Act will make the rental process more affordable and transparent.
New York City Council to Vote on Bill Ending Tenant-Paid Broker Fees
The New York City Council is expected to vote on Wednesday on a bill that would put an end to tenant-paid brokers fees, as the city looks for strategies to tackle the housing affordability crisis.
What is the FARE Act?
The bill, dubbed the FARE Act, would “prohibit brokers from passing their fee onto tenants where the broker is exclusively representing the landlord’s interests.”
What are the Implications?
If the law, introduced by NYC Council Member Chi Osseé, is passed and signed by Mayor Eric Adams, the broker fee legislation will not be implemented immediately. According to the bill, New Yorkers will see the benefits of the legislation in 180 days after it becomes law.
Why is the Bill Needed?
A StreetEasy analysis found that in 2023, the average New Yorker spent more than $10,000 in upfront costs for rental, a 7.1% increase from the 2022 data. It also pointed out that the largest upfront expense was the broker fee.
What is the Opposition to the Bill?
The New York State Association of Realtors has voiced opposition to the measure, arguing that the elimination of the broker fee “threatens brokers’ livelihoods, lead to increased rents, and limit housing access.”
What is Mayor Eric Adams’ Position?
Mayor Eric Adams has not committed to signing the Democratic-led effort. In an unrelated press conference on Tuesday, Adams said the bill could make the broker fee into “a permanent fee that’s built into your rent.”
When is the Voting Happening?
The NYC Council Committee on Consumer and Worker Protections voted on Wednesday to advance the FARE Act to the full council for a final vote at 1:30 p.m. A final vote on the FARE Act is expected to occur during the afternoon hours.
Conclusion
The FARE Act has the potential to make a significant impact on the lives of New Yorkers, making the rental process more affordable and transparent. While there are concerns about the potential consequences of the bill, it is clear that the current system is in need of reform.
FAQs
Q: What is the FARE Act?
A: The FARE Act is a bill that would end broker fees for tenants in New York City.
Q: What are broker fees?
A: Broker fees are the charges paid by tenants to real estate agents for their services in finding a rental property.
Q: Who is in favor of the FARE Act?
A: At least 34 council members are in favor of the FARE Act.
Q: Who is opposed to the FARE Act?
A: The New York State Association of Realtors is opposed to the FARE Act.
Q: When will the FARE Act take effect?
A: If passed and signed by the mayor, the FARE Act will not be implemented immediately. According to the bill, New Yorkers will see the benefits of the legislation in 180 days after it becomes law.
