Modified ‘good-cause’ option on tap
ALBANY — A proposed housing deal could create a softened version of the longstanding “good-cause eviction” legislation that has drawn the ire of the real estate industry while becoming a rallying cry for the left flank of the Democratic Party.
The pending budget deal negotiated by Democratic state legislators and Gov. Kathy Hochul is expected to spell out a good-cause eviction policy for New York City, while municipalities outside the city may be given the chance to opt-in to that plan or adopt a modified version, according to multiple sources familiar with the negotiations.
The policy is not finalized and remains the subject of debate internally within the Assembly and state Senate Democratic conferences. At least some form of tenant protections is anticipated in the budget after Hochul announced on Monday the “parameters of a conceptual agreement” for a $237 billion spending plan.
The housing deal could assist efforts to adopt “good-cause” laws in Albany and Hudson Valley cities, including Beacon, Newburgh and Kingston. Pending legal challenges have left the local statutes on uncertain ground. The budget proposal is expected to allow “flexibility to modify” the version of “goodcause” the state is proposing for New York City, although lawmakers and other public officials on Tuesday provided different understandings of whether a city like Albany could try and adopt its initial version of the tenant law.
Albany’s version, similar to other localities in the Hudson Valley, has consistently been struck down in the courts because, judges say, state law preempts the policy.
The city of Albany’s ongoing court battle over the local law is pending in the state Court of
Lawmakers have often noted that during the state budget process, they have leverage to get policy measures adopted. Hochul has placed the effort to increase affordable housing in New York at the top of her policy agenda.
Appeals and may be heard this summer. In that case, the city argues the ability for a landlord to “unilaterally terminate a residential lease” poses a serious “public health threat” that creates the need for the “good-cause” law.
If the state’s highest court rules in favor of Albany, which is being sued by landlords, it could create a different pathway for municipalities to pass their own versions of the tenant protection law that dictates the reasons and conditions when a landlord can evict a renter.
The policy state lawmakers are considering to include in the budget could reduce the implications the Court of Appeals decision. Lawmakers have often noted that during the state budget process, they have leverage to get policy measures adopted. Hochul has placed the effort to increase affordable housing in New York at the top of her policy agenda.
The tenant protections could prevent a landlord from evicting a tenant without “cause.” It would likely restrict landlords from not offering a lease renewal. And it could require landlords to provide certain justifications for the reason for rent hikes above a certain rate. The number of units a landlord rents could determine whether “goodcause” applies to their property.
In New York City, a landlord with at least 10 units would likely qualify for the standards, but outside of the city, municipalities that opt into the “good-cause” policy are expected to be able to at least determine the number of units that a landlord would have to own to qualify.
“The more you can tailor it to the conditions of your local area, it makes sense,” said state Sen. Rachel May, D-syracuse.
May, in an interview Tuesday, said she would prefer an “opt-out” provision, which would put the onus on municipalities across the state to pass policy that they do not want to have “goodcause.”
“I worry that our upstate cities will adopt this, but all the surrounding communities will not and it could have the impact of further concentrated poverty,” May said.
The perspective of May, a proponent of the “goodcause” policy, is generally shared by tenant advocates who have been pushing the legislation. Cea Weaver, coalition director of Housing Justice for All, said she prefers if goodcause would apply statewide and is particularly concerned about an opt-in option.
If municipalities cannot adopt their own version of “good-cause” to opt-in, Weaver said, it would leave even weaker laws on the books to protect tenants.
“It’s a real shame,” Weaver said. “The versions that passed in Albany, Kingston and Newburgh were much stronger.”
Assemblywoman Pat Fahy, D-albany who is running for state Senate, has maintained her opposition to the standalone “good-cause” bill, but is supportive of the measure being discussed for an opt-in. She wants to let the city of Albany pass whatever standards local officials view as sufficient. She said she’s particularly amenable to the “goodcause” measure in the state budget, because it comes with provisions to help grow the housing supply.
“Anything we do has to have both sides of the coin,” Fahy said. “We have to grow our housing. In the end, we have a shrinking market. We have no new investments coming to Albany.”
About 8 percent of available rentals in Albany are vacant, greater than the statewide average of 5 percent, according to state data. Albany, Schenectady and Rensselaer counties in recent years have typically had the highest rate of evictions per household in the state, outside of New York City.