The New York City Council on Wednesday November 13, voted to pass legislation that would reform broker fees to increase affordability for renters. New York City is in the midst of a housing and affordability crisis, with working- and middle-class residents struggling to keep up with high rents and other rising costs. Over half of New York City households are considered rent-burdened, meaning they spend more than 30% of their income on rent. Moving costs add to the growing expenses. Prospective renters already face a host of upfront costs, including the first month’s rent, security deposit, credit report fees, background checks, and often a fee for a real estate broker hired by the property owner. Broker fees can range from one month’s rent to as much as 15% of the annual rent. Between January and September of this year, the average New Yorker moving to a new apartment on average spent nearly $13,000 in upfront costs – the highest average recorded in New York City since at least 2010 when the data began to be tracked.
The Council also passed legislation to establish a Charter Revision Commission that prioritizes improving city government, transparency and accountability, restoring public confidence in local democracy. It also aims to restore standards for Charter Revision Commissions after the recent one by the mayor lowered them. In contrast to Mayor Adams’ recent Charter Revision Commission that rushed completion of its process in less than two months, the proposed legislation would provide at least eight months for the commission’s work before its earliest submission of proposals for a General Election in 2025 and up to 20 months for the 2026 General Election.
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“To address the affordability crisis in our city, we must make the process of renting an apartment more transparent and affordable for working-class New Yorkers,” said Speaker Adrienne Adams. “The Council is proud to pass this historic bill to protect our city’s renters, ensuring that tenants aren’t on the hook for fees for services they did not request. Many New Yorkers can’t afford these major upfront payments, blocking them from the ability to secure a home. This bill would deliver economic fairness to renters, and greater transparency in the rental process.
“The Council is also proud to pass legislation authorizing a Charter Revision Commission that can help restore public confidence in city government and strengthen our local democracy. Our goal is also to re-establish model standards for Charter Revision Commissions to prioritize improving the City Charter for the long-term governance of our city.”
FARE Act
Introduction 360-A, also known as the FARE Act, sponsored by Council Member Chi Ossé, seeks to alleviate financial burdens on renters by ensuring that tenants are not forced to pay the fee for the services of a real estate broker they did not hire. The bill would prohibit brokers from passing their fee onto tenants when the broker is exclusively representing the landlord’s interests. This would include brokers who publish listings with the landlord’s permission. Landlords or their agents would be required to disclose the fees that the tenant must pay in their listings and rental agreements. The Department of Consumer and Worker Protection would enforce this bill and would conduct education and outreach. Any person who violates this bill would be subject to a civil penalty or civil action.
“The system of forced broker fees is an affront to all New Yorkers,” said Council Member Chi Ossé. “Today, we end that system. The victims of the old paradigm are too many to count. Families unable to have another child, because they cannot afford to move into a larger home. Children aging out of their parents homes unable to find a place in their own communities. Victims unable to flee domestic violence. Workers unable to live near their jobs, or in their city at all. Anyone who is hoping to bring their talents and passion to our great city but can’t afford to get through the front door. Today the New York City Council proved it can put the interests of the people first and be an example of good governance. This is a win for our city and for healthy democracy.”
Initiating a Charter Revision Commission to Improve City Government
Introduction 1088-A, sponsored by Speaker Adrienne Adams, would establish a Charter Revision Commission that prioritizes improving city government, transparency and accountability, restoring public confidence in local democracy. The Commission would consist of 17 members appointed by the Speaker, Mayor, Public Advocate, Comptroller, and all five Borough Presidents. Registered lobbyists would be ineligible to serve on the Commission and anyone with business before the City would require approval of the Conflicts of Interest Board in order to serve on the Commission. The Commission would be required to conduct an extensive outreach campaign to solicit ideas from civic and community leaders, and encourage the public to participate in the hearing process. It would be empowered to submit its proposals to revise the City Charter for the 2025 or 2026 General Election.
