REBNY

James Whelan, President of the Real Estate Board of New York (REBNY), at a rally opposing the FARE Act in June. Courtesy of REBNY

December 17, 2024

REBNY sues to block NYC broker fee law

By Devin Gannon

The Real Estate Board of New York sued the city on Monday to stop a new law that would shift the payment of broker fees from renters to landlords. The Fairness in Apartment Rental Expenses (FARE) Act, which requires the party who hired the broker to pay the fees, became law over the weekend and takes effect in six months. In a lawsuit filed in Manhattan federal court, REBNY argues the FARE Act violates brokers' rights to free commercial speech under the First Amendment and will lead to "higher rents, fewer properties advertised, and decreased overall transparency of the markets for consumers."
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Policy

NYC Council votes to end forced broker fees

Council Member Chi Ossé held a press conference before the City Council voted on the FARE Act. Photo credit: Gerardo Romo / NYC Council Media Unit on Flickr

November 13, 2024

NYC Council votes to end forced broker fees

By Aaron Ginsburg

New York City renters may soon no longer have to pay a broker fee when leasing an apartment. The Council on Wednesday voted to approve the Fairness in Apartment Rental Expenses (FARE) Act, which shifts the payment of broker fees to the party who hired the broker, typically landlords or the management company. The bill was passed with a veto-proof majority of 42-8.
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What to know about the NYC broker fee bill

James Whelan, President of REBNY, during Wednesday’s rally at City Hall. Photo courtesy of REBNY

June 12, 2024

What to know about the NYC broker fee bill

By Devin Gannon

Broker fees are once again up for debate in the New York City Council. A seven-hour public hearing on Wednesday brought hundreds of tenant advocates and real estate professionals to City Hall over Intro 360, or the Fairness in Apartment Rental Expenses (FARE) Act. The legislation, sponsored by Council Member Chi A. Ossé, calls for shifting the payment of broker fees to the party who hired the broker, often the landlord or management company. Agents argue landlords would bake the fees into the monthly rent, threatening their livelihood and increasing the financial burden for renters.
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NYC developers filed plans for just 9,909 housing units in 2023

Image courtesy of robertotmn on Flickr

January 9, 2024

NYC developers filed plans for just 9,909 housing units in 2023

By Devin Gannon

In 2023, housing production in New York City slowed dramatically. According to a new Real Estate Board of New York report, developers filed 285 multi-family foundation plan applications with just 9,909 apartments proposed, a 78 percent drop in total unit filings from 2022 when there were over 45,500 units proposed. The number of dwelling units proposed last year is 50 percent of the roughly 20,000 units produced per year between 2000 and 2020. REBNY blames the expiration of the 421-a tax break for the major decline.
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Real Estate Trends

New York officially gives real estate agents the go-ahead to collect broker fees

Photo by Daryan Shamkhali on Unsplash

May 27, 2021

New York officially gives real estate agents the go-ahead to collect broker fees

By Devin Gannon

The state of New York this week walked back the broker fee ban that was never really a ban. Last year, the Department of State issued guidance related to the sweeping rent reform laws from 2019 that said brokers hired by landlords would not be allowed to charge prospective tenants a fee. Following several legal challenges, a judge ruled last month that a ban on broker fees was an "error of law" and struck down the law. The state on Tuesday officially updated the guidance to fall in line with the court ruling.
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Policy

NYC sees end-of-year residential sales surge, especially in Brooklyn and Queens

Photo by Jeffrey Blum on Unsplash

February 10, 2021

NYC sees end-of-year residential sales surge, especially in Brooklyn and Queens

By Devin Gannon

After three consecutive quarters of decline, the total residential sales volume and residential transactions in New York City during the final quarter of last year increased considerably. According to a new report released this week by the Real Estate Board of New York (REBNY), total sales increased to $9 billion in Q4 2020 from $6.5 billion in Q3, a roughly 40 percent increase in sales volume. Notably, the outer boroughs drove the surge in sales, with a sales volume increase of 90 percent in Brooklyn and 69 percent in Queens during this period.
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Photo by Daniel Lee on Unsplash

June 11, 2020

Ahead of city’s phase two of reopening, REBNY releases safety guidelines for real estate brokers

By Devin Gannon

As New York City looks ahead to phase two of reopening, the city's leading real estate trade group released this week safety recommendations for brokers to follow when conducting deals. Following public health protocols, the six guidelines created by the Real Estate Board of New York encourage face masks and social distancing, virtual preliminary meetings, appointment-only showings, and electronic contracts. Plus, REBNY created a COVID-19 screening questionnaire for all parties attending in-person showings to sign.
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Real estate work is essential, but showings must be virtual

Photo by Jonathan Riley on Unsplash

April 3, 2020

Real estate work is essential, but showings must be virtual

By Devin Gannon

Certain real estate work is still considered essential by New York, but showings cannot take place in-person, the state clarified on Thursday. In a notice to the New York State Association of Realtors, the Empire State Development earlier this week said home inspections, residential appraisals, back-office real estate work, and residential and commercial showings can continue during the coronavirus outbreak. But despite being newly categorized as essential, agents still cannot host traditional showings, as was previously reported.
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Photo by Nick Normal on Flickr

March 16, 2020

New York freezes evictions statewide indefinitely amid coronavirus pandemic

By Devin Gannon

Eviction proceedings have been halted until further notice in response to the coronavirus pandemic, New York officials announced Sunday. Effective Monday at 5 p.m., all proceedings and pending eviction orders will be suspended across the state, according to a memo written by New York's Chief Administrative Judge Lawrence Marks.
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Policy

Photo courtesy of CityRealty

March 9, 2020

With court decision delayed, broker fees live on (for now)

By Devin Gannon

Real estate agents can continue to charge New York renters broker fees until at least June, Crain's reported. Last month, the state department updated a set of guidelines for last year's rent reform laws to prevent brokers who are hired by landlords from charging tenants a fee as part of the application process. Industry groups, including the Real Estate Board of New York (REBNY) and a number of brokerages, filed a petition last month to stop the new rule, which resulted in a temporary restraining order. The office of State Attorney General Letitia James on Friday asked for a three-month extension to respond to the lawsuit, pushing the court date from this week to June 12.
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Temporary restraining order rolls back broker fee ban

By Michelle Cohen

In an update made last week to the state's recent rent reform laws, the Department of State said real estate brokers hired by landlords could no longer charge tenants a fee. The ruling sparked a widespread backlash from the real estate industry, particularly rental brokers. In response, a group of industry representatives filed an Article 78 petition in Albany, which resulted in a temporary restraining order on Monday, The Real Deal reported. The Real Estate Board of New York (REBNY) and a number of high-profile brokerages have filed a lawsuit claiming the new guidance was an “unlawful, erroneous, and arbitrary” interpretation of the rent reform law passed in June and wreaked “havoc and confusion” on the industry. The restraining order means agents acting on behalf of landlords can collect a commission from tenants until further notice without fear of discipline by the DOS.
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Photo courtesy of CityRealty

September 16, 2019

Application fee for New York rentals officially capped at $20

By Devin Gannon

New York officially capped the cost of applying for an apartment at $20, clearing up confusion over a key part of rent reform legislation passed earlier this summer. The Department of State announced on Friday that licensed real estate brokers and salespeople cannot charge more than $20 for a rental application, as Gothamist first reported. The DOS released a set of guidelines to help real estate professionals understand the new rent laws.
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Policy

NY real estate groups file lawsuit challenging new rent laws, calling them ‘unconstitutional’

Via Creative Commons

July 16, 2019

NY real estate groups file lawsuit challenging new rent laws, calling them ‘unconstitutional’

By Devin Gannon

A group of real estate groups and individual property owners filed a lawsuit Monday, challenging newly passed laws that strengthen rent and tenant protections in New York City. Last month, Democratic officials in Albany passed a landmark package of bills that close loopholes that have allowed landlords to increase rents and deregulate stabilized apartments. The lawsuit, filed by the Rent Stabilization Association (RSA), the Community Housing Improvement Program (CHIP), and seven individual property owners, claims that the laws, as well as the entire rent regulation system, violate the 14th and Fifth Amendments of the U.S. Constitution, as reported by The Real Deal.
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Real Estate groups plan to file lawsuit if rent reform law passes

Image via Pixabay.

June 13, 2019

Real Estate groups plan to file lawsuit if rent reform law passes

By Michelle Cohen

Real estate industry leaders say they will file a lawsuit against the state to challenge a package of bills containing changes to current rent regulations, which expire on June 15, the Observer reports. As 6sqft previously reported, the legislative package headed to both chambers for a vote this week contains landmark changes to current rent regulations aimed at strengthening New York’s rent laws and tenant protections. Industry stakeholders say they'll challenge the legislation on several points including one that makes the rules permanent, rather than having them expire every few years. The lawsuit would also challenge the retroactive nature of a provision to lower the amount landlords can charge for major capital improvements.
The industry fears 'disaster'

Mayor pulls Theater District air rights plan after disputes with City Council over floor price

Image via Wiki Commons

February 28, 2017

Mayor pulls Theater District air rights plan after disputes with City Council over floor price

By Michelle Cohen

Image via Wiki Commons The de Blasio administration pulled the plug Monday on proposed legislation that would give the city a 20 percent cut of any air rights sales in midtown Manhattan's Theater District, according to Crain's. The reversal followed disputes with City Council members over a key element–a floor price for the sales. The proposal had been part of a long effort to get theater owners to up the amount they contribute to a fund used for venue maintenance and support for smaller theaters. There is now speculation as to whether the move could cast a shadow on the administration's Midtown East rezoning plan, which is a similar policy initiative.
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Policy

February 7, 2017

City continues push to raise fee for Theater District air rights transfers

By Dana Schulz

In November, the City Planning Commission voted to raise the cost of air rights transfers in the Theater District, allowing the city to take a 20 percent cut of any sales and establishing a minimum floor price of $346, a roughly 400 percent increase over the current $17.60 flat fee that they feel will be more in line with current property values. Despite vocal opposition from the Real Estate Board of New York, who back Theater District landlords and believe the increase is "is onerous, excessive and unfair," this month the Commission is hoping to have the proposal approved by the City Council, reports Crain's.
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Policy

November 17, 2016

City Planning Commission votes to raise fee for Theater District air rights transfers

By Michelle Cohen

The City Planning Commission has voted to up the cost of air rights transfers in the special Midtown Manhattan district that includes Broadway's theaters, The Real Deal reports. Currently, when developers purchase air rights from theaters between West 40th and West 57th Streets from Sixth to Eighth Avenues, they pay $17.60 per square foot to the Theater Subdistrict Fund. Transferable development rights can usually only be used for adjacent properties, but the city created the special district in 1998 to help the theater industry thrive amid sharply rising real estate prices; within the district, air rights can be moved more freely in a larger area outside the usual “arms length” restrictions.
What does this mean for Broadway theaters?

Policy

November 11, 2016

Cuomo’s revised 421-a plan will move ahead as REBNY and construction trades come to agreement

By Dana Schulz

Ever since the city's 421-a tax exemption program expired in January, the Building and Construction Trades Council of Greater New York and the Real Estate Board of New York (REBNY) have been negotiating under what terms to extend and/or modify the program. Both groups took part in what the city believes were "secret talks" with Governor Cuomo over the summer, after which he released his proposal to revise 421-a with wage subsidies for construction workers. REBNY was concerned about this stipulation, claiming it would increase construction costs by up to 30 percent, but a press release sent yesterday evening reports that they've reached an agreement with the Trades Council to move ahead with Cuomo's version of the plan, which, in addition to setting a $60 hourly wage for qualifying projects in Manhattan and $45 in Brooklyn and Queens, extends the tax breaks up to 35 years (up from de Blasio's proposed 25 years) and mandates newly created affordable units be kept in place for 40 years.
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New Report Says Landmarked Districts Don’t Protect Affordable Housing

Historic brownstones in Brooklyn Heights via City Realty

September 15, 2015

New Report Says Landmarked Districts Don’t Protect Affordable Housing

By Dana Schulz

The war wages on between the Real Estate Board of New York (REBNY) and citywide preservationists. Many thought the contention between the groups over whether or not historic districts lessen affordable housing was a personal sentiment of former REBNY president Steven Spinola. But his successor John Banks has released a new report that claims landmarking doesn't protect affordable housing. The report looks at the number of rent-stabilized units in landmarked and non-landmarked districts between 2007 and 2014, finding that "citywide, landmarked properties lost rent stabilized units (-22.5%) at a much higher rate (-5.1%) than non-landmarked properties." Of course preservationists quickly fired back. Andrew Berman, executive director of the Greenwich Village Society for Historic Preservation (GVSHP) calls the study "bogus" and says it does nothing to address how many units would have been lost had these areas not been landmarked.
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5,484 Affordable Housing Units Could Be Lost if 421-a Abatement Isn’t Renewed, Says New Report

Brooklyn’s Pacific Park development, one of the pipeline projects examined in the report for it’s affordable housing offer. Rendering by COOKFOX

March 16, 2015

5,484 Affordable Housing Units Could Be Lost if 421-a Abatement Isn’t Renewed, Says New Report

By Diane Pham

This morning the Real Estate Board of New York (REBNY) released a report today saying if the city fails to renew the existing 421-a partial tax exemption program, we could stand to lose thousands of affordable units. REBNY took a look at a sample of projects in the pipeline—including Essex Crossing, 5Pointz, Domino and Pacific Park, amongst others—and found that 421-a is responsible for 5,484 affordable apartments and 13,801 market-rate units in these developments. They argue that without the abatement the theses units would be in jeopardy and be "immediately be sent back to the drawing board." They add that some of the units could even end up as high-end luxury condominiums and some of the middle- and low-income housing now in the works would be lost forever.
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