New York's Good Cause Eviction Law: An Overview and Impact Analysis

The Good Cause Eviction Law went into effect on April 20, 2024. It applies to all new and renewed leases (unless specifically exempt) in New York City and allows other municipalities across the state to opt into the law through local legislation. This flexibility enables tailored approaches that consider regional housing market conditions.

The law mandates that landlords must show "good cause" for evicting tenants. Good cause includes legitimate business reasons, such as the tenant failing to pay rent, violating lease terms, or engaging in unlawful behavior. Significant restrictions are also placed on landlords, particularly around rent increases and lease renewals. While there are more, some primary permitted causes for eviction are:

1. Failure to Pay Rent: Non-payment remains a valid reason for eviction.
2. Violation of Lease Terms: Tenants who breach significant lease obligations can be evicted.
3. Illegal Use or Nuisance: Tenants using premises for unlawful purposes or creating a nuisance can face eviction.
4. Personal Use by Landlord: Landlords can reclaim property for personal use or for close relatives' use as a primary residence.
5. Demolition and Withdrawal from Rental Market: Landlords may evict tenants if the property is to be demolished or withdrawn from the rental market.

The law also caps rent increases at the lesser of 10% or the inflation index — defined as 5% plus the annual percentage change in the consumer price index (CPI), unless a higher increase can be justified with proper documentation and reasoning. When considering if a rent increase is unreasonable, the court must consider several factors, including: property tax expenses and any increases thereto; "significant repairs" where such repairs were not due to a landlord's failure to maintain; and costs for fuel and other utilities, insurance, and maintenance.