New York City’s real estate world is upset about a new law called the FARE Act.
The Real Estate Board of New York (REBNY) and other groups filed a lawsuit on Monday, saying the law is unconstitutional and bad for renters.
The FARE Act makes landlords pay real estate brokers’ fees when they hire them to rent out properties.
It also requires landlords to share any fees tenants might have to pay in listings and rental agreements.
REBNY argues that this law will backfire. They say landlords will raise rents to cover the costs of broker fees, making it harder for people to afford housing.
They also claim the law breaks the U.S. Constitution’s rules about free speech and contracts and goes against New York State’s real estate regulations.
The law was passed by the City Council in November and will start in June, even though Mayor Eric Adams didn’t need to sign it.
The bill’s main supporter, Chi Ossé, hasn’t commented yet.
REBNY’s lawyer, Carl Hum, said, “This law will hurt tenants by raising rents and making housing harder to find.
Plus, it breaks constitutional and state rules. We’re ready to fight this in court.”
This story was originally reported by PIX11 News.