FARE Act Becomes Law, Reforming Broker Fees to Help Working-Class New Yorkers Afford Housing

Law is enacted after Mayor Adams' inaction and baffling rhetorical opposition after his administration negotiated to support bill

City Hall, NY - Today, Introduction 360-A, known as the FARE Act, became law as a result of the Mayor taking no action within 30 days of its passage. The new law, which will take effect 180 days after becoming law, prohibits landlords from passing the fees of brokers they hire onto prospective tenants. It brings greater fairness to New York City's rental housing market for prospective tenants often burdened with nearly $13,000 in upfront costs, including thousands of dollars in broker fees, even when they did not request the services.

Mayor Adams declined to sign the bill into law and began voicing last-minute opposition before its passage, even after his administration had already negotiated with the Council to support it.

"The Council continues to take action that makes housing and our city more affordable to New Yorkers, so they can remain in our communities," said Speaker Adrienne Adams. "The Council is consistent in our focus on improving the lives of working- and middle-class families, and New Yorkers deserve a city government that will prioritize their needs-not undermine them. The Administration was fully engaged in negotiations with the Council to ensure successful passage of this law throughout the legislative process. We fully expect Mayor Adams to implement it without delay to reinforce his pledge to support working-class New Yorkers."

"After too many decades under an unfair and suffocating system, New Yorkers can be free from the forced broker fee once this new law takes effect in June 2025," said Council Member Chi Ossé. "The era of the captive tenant may finally be over. This win belongs to all of us - but we must ensure that the Mayor's Administration adequately implements and enforces the law after his puzzling last-minute statements that contradicted the work of his administration in negotiation to support it. I thank Speaker Adams and the Council for their partnership in bringing the FARE Act to law, as well as the dozens of unions and advocacy groups whose support was indispensable. I also thank the people of New York, who comprised the popular grassroots movement that was necessary to overcome the immense political and financial resources of the real estate lobby."

Over half of New York City households are classified as rent-burdened, meaning they spend more than 30% of their income on rent. Moving costs often add to the financial stressors already impacting rent burdened families, with prospective renters facing a host of upfront expenses including first month's rent, a security deposit, credit report fees, and background checks. Often a fee for a real estate broker hired by the property owner is an additional cost that can range from one month's rent to as much as 15% of the annual rent. In 2023, the average New Yorker moving to a new apartment spent nearly $13,000 in upfront costs, including thousands of dollars in broker fees. The FARE Act ensures transparency for tenants to not unfairly be burdened with additional costs by placing the responsibility for a broker's fees on the party that actually hired them.

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