LANDLORD MUST FOLLOW NEW RULES UNDER “GOOD CAUSE EVICTION” LAW

by | Mar 25, 2021 | Business Law, News, Personal Injury, Uncategorized

The new laws known collectively as the “GOOD CAUSE” EVICTION LAW (GCE) restricts the ability of rental property owners, unless they fall under one of the listed exemptions from coverage by this new legislation, to remove a free market or unregulated tenant without having to first prove or demonstrate any reason.

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Prior to this new law, when a non-regulated or free market tenant’s lease had expired, a landlord was not required to allege or have any reason to ask a tenant to move… Now under the new Good Cause Eviction laws that any landlord, unless he or she falls under one of the specific exemptions from coverage, will have to allege in their court papers and prove in court that the basis for non-renewal of the tenant’s lease or termination of tenancy is one of the “Good Cause” grounds enumerated under the statute.

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As we elaborated in the last issue, the new law applies only to certain residential rental properties and contains exemptions from coverage for certain classes of property owners including housing accommodations owned by a “Small Landlord” (which the statute defines as owners of ten (10) or fewer units in the State), rental units in a Coop or Condo owned building, units which are already subject to rent and eviction regulations like rent stabilization or buildings where a certificate of occupancy was first issued (basically meaning new construction) after January 1, 2009, and several other exempt categories.

However where a landlord of a non-exempt apartment unit (which falls under the Good Cause Eviction law) wishes to bring an action to remove a tenant once the lease expires or when merely month to month, the new law now requires a recitation in the court papers of one or more of the specifically enumerated “Good Cause” grounds why the action is being brought and the tenant is not being allowed to remain.

Under the new law, “Good Cause” is defined as including but not limited to the following grounds:

*Failure to pay rent due and owing provided that such failure to pay rent is not the result of an “unreasonable ” rent increase . A rent increase is presumably unreasonable if the increase is greater than either 5% plus the annual percentage change in the Consumer Price Index as published by the U.S. Bureau of Labor Statistics for the region where the apartment is located as indicated by DHCR by August 1st each year, or a flat 10% whichever is the lesser. Currently for New York City the CPI is 3.82% so any increase over 8.82% would be considered unreasonable;

*Breach of a substantial obligation of the tenancy that continues after the service on the tenant of a 10-day notice to cure;

*Conduct by the tenant which is considered creating a nuisance which interferes with the comfort or safety of the landlord or other tenants or occupants of the building or is maliciously or by gross negligence damaging the subject unit or building;

* Failure by the tenant to provide access to the landlord or his workers for the purpose of making necessary repairs or improvements as required by law or to show the unit to prospective purchasers, mortgagees or others having a legitimate interest therein;

*Recovery of the unit is desired by the landlord in “good faith” for the landlord or his family member’s principal residence. This provision will not apply where the tenant is 65 or older or is a disabled person;

*The housing unit is being used for an illegal purpose;

For a fuller examination as to whether your situation with your unit or your tenant constitutes “Good Cause” or if you have questions as to whether your rental property falls under one of the various exemption categories, please call our office and ask to speak with one of our attorneys.

In future issues of this NEWSLETTER as caselaw develops, we will revisit the newly enacted Good Cause Eviction law and discuss how the courts are interpreting the statute and applying it to common landlord-tenant disputes.

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