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legislative whirlwind swept through New York's real estate landscape in 2024, and now the industry is bracing for a lawsuit storm in 2025. The Fairness in Apartment Rental Expenses Act, which requires landlords to cover broker commissions, has become a focal point of controversy. The Real Estate Board of New York (REBNY) is suing to block the law, claiming it oversteps into private contracts and contradicts state regulations.
As the battle unfolds, city officials are rallying behind the FARE Act. Governor Kathy Hochul's office even enlisted Council member Chi Ossé to create a video supporting the measure, which was shared on social media this week. The law is set to take effect in June, but REBNY has filed an emergency motion to halt its implementation while the lawsuit proceeds.
This isn't the only real estate-related lawsuit making headlines. A group of City Council members and others have launched a complaint seeking to nullify the City of Yes for Housing Opportunity zoning actions, citing environmental law violations. If either of these laws is overturned, it would be a significant blow to New York's housing landscape.
In other news, a judge has dismissed a lawsuit aimed at halting negotiations over resetting the ground lease rent at Carnegie House. The building's shareholders may appeal or wait for state lawmakers to intervene with a bill capping ground lease rent increases – which could spark yet another industry backlash.
Meanwhile, Mayor Eric Adams' decision not to run in the June Democratic primary has raised questions about his potential support from the real estate industry. Will this move win him more backing from developers and landlords? Share your thoughts: [email protected].
A notable change is underway at public relations firm Risa Heller, which has rebranded as simply Heller. The company's growth from a solo operation to a 30-person powerhouse across two offices is a testament to its success. A TV show based on the firm is also in production, starring Lizzy Caplan – and if the showrunners need advice on casting annoying real estate reporters, I'm available.
In other New York news:
* Former Governor Andrew Cuomo's chances of securing support from the New York Working Families Party are "close to none," according to party co-director Ana Maria Archila.
* Governor Kathy Hochul has signed another budget extender, keeping state government funded through Monday. Senator Liz Krueger is cautiously optimistic that a final budget will be approved by next week's Easter and Passover break.
* Lobbying spending in New York reached an all-time high of $377 million last year, with Genting Group and Queens Future among the top spenders.
Residential sales:
* The priciest residential sale was $9.9 million for a 3,890-square-foot townhouse at 19 Downing Street in the West Village.
* Commercial sales:
+ The most expensive commercial closing of the day was $6.95 million for a 15,000-square-foot industrial property at 60-10 Maurice Avenue in Elmhurst.
New listings:
* The highest price for a residential property hitting the market is $110 million for an 11,480-square-foot condominium at 111 West 57th Street in Midtown West.
Building permits:
* The largest new building application filed was for a 29,128-square-foot, 8-story, 74-unit residential project at 3963 Saxon Avenue in Kingsbridge.
