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Navigating the Good Cause Eviction Law: Exemptions for Cooperative and Condominium Apartments

Co-ops and Condos

Are cooperative and condominium apartments exempt from the Good Cause Eviction Law?

On April 24, 2024, the New York State Legislature passed the Good Cause Eviction Law, introducing greater protections for tenants. It is a law of historic proportions because it provides protection to tenants who were previously defenseless in the face of evictions and rent increases. Under the newly enacted law, landlords must demonstrate good cause to the court to remove a tenant from an apartment. Good cause includes, but is not limited to, the following: nuisance, illegal use of the premises, or damage that is the product of gross negligence. Additionally, rent increases above a presumptively unreasonable threshold must be justified based on either “(a) not exceeding 5 percent plus the annual percentage change in the consumer price index for all urban consumers for all items, or (b) not exceeding 10 percent”. Landlords therefore are held to a significantly higher burden of proof.

An important aspect to consider is the exemption outlined in New York’s Real Property Law, specifically Subdivision 7 of Section 214, which excludes units within condominiums or cooperatives, or those covered under an offering plan submitted to the Office of the Attorney General, from the purview of the Good Cause Eviction Law. Therefore, rent-regulated sponsor-owned cooperative units will not be subject to the law. Despite the exemptions, questions will undoubtedly arise as the law is put to use by landlords. At Guzov, LLC we are here to answer those questions.

The Good Cause Eviction Law’s ramifications are poised to reshape the rental housing landscape in New York City and potentially reverberate statewide. While certain exemptions have been secured through advocacy efforts, including the exclusion of co-ops and condos, the law’s impact remains far-reaching. The law’s implementation should accordingly be closely followed.

If you would like to discuss compliance under the Good Cause Eviction Law, or any issues relating to cooperatives and condominiums, please contact us to schedule a consultation.

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