NYC's FARE Act reforming broker fees becomes law after Mayor Eric Adams declines to sign bill
NEW YORK — Legislation reforming broker fees in New York City became law Saturday after Mayor Eric Adams declined to sign the bill.
The New York City Council passed the Fairness in Apartment Rental Expenses, or FARE, Act with 42 of 51 votes in November, and the mayor had 30 days to sign it. Since the law passed by a veto-proof majority, it still becomes the law even though the mayor did not sign the act.
The law will officially take effect 180 days from Saturday – in June 2025.
What is New York City's FARE Act?
Under the new law, the person who hires a broker will have to pay the fee, meaning landlords will not be allowed to pass broker fees onto prospective tenants.
Councilmember Chi Ossé, who introduced the legislation, says this is the case in most cities across the United States. He believes the new law will lead to more affordable rental costs for New Yorkers, who often spend $10,000 to secure a typical one-bedroom apartment.
"After too many decades under an unfair and suffocating system, New Yorkers can be free from the forced broker fee once this new law takes effect in June 2025," Ossé said in a statement. "The era of the captive tenant may finally be over. This win belongs to all of us – but we must ensure that the Mayor's Administration adequately implements and enforces the law after his puzzling last-minute statements that contradicted the work of his administration in negotiation to support it. I thank Speaker Adams and the Council for their partnership in bringing the FARE Act to law, as well as the dozens of unions and advocacy groups whose support was indispensable. I also thank the people of New York, who comprised the popular grassroots movement that was necessary to overcome the immense political and financial resources of the real estate lobby."
Opposition to NYC broker fee law
In November, the mayor said he was worried the legislation would result in increased rent costs. Real estate groups also shared the mayor's concerns, saying landlords will just factor the cost of the broker fees into the rent.
Ossé argued that nearly half of New York City apartments are rent-stabilized, so it would be illegal for landlords to add the broker fee to the rent for those tenants.
"If your landlord could increase your rent tomorrow, they would have done so yesterday. They're not holding back, who are we kidding?" Ossé said in November.
