New York City Council Passes Broker Fee Bill

The New York City Council has passed the Fairness in Apartment Rentals Act (FARE) with a veto-proof majority of 42-8, shifting the responsibility of broker fees from tenants to landlords in most rental situations. This legislation, a significant reform in a city where such fees have traditionally been passed onto renters, aims to alleviate financial burdens as the average upfront rental cost has soared to nearly $13,000. Sponsored by Councilmember Chi Ossé, the bill seeks to modernize rental practices and improve housing affordability, which has become a critical issue for many residents. However, opponents, including the Real Estate Board of New York, warn that landlords may simply increase rents to cover these costs, potentially negating the intended relief. Mayor Eric Adams has expressed concerns about the bill's implications, though he has not formally opposed it. The new law is set to take effect in 180 days, marking a noteworthy change in New York's rental landscape.