NYC Council passes FARE Act
UPDATED on 06.12.25: On 06.11.2025 the FARE Act went into effect after a federal judge dismissed REBNY’s effort to stop this law.
UPDATED on 12.17.24: REBNY lawsuit was filed to stop the FARE Act
When I first moved to New York City in the late 80s, broker fees were ever present and usually priced between one- and two-months’ rent. They could be a lot more, especially if you knew someone who could get you into a rent controlled/stabilized building, and you were advised that the low rent this fee opened the door to would pay the broker’s fee off. It’s doubtful that this was legal. It was pure luck that I avoided broker fees, as I’ve known many who paid them.
Since then there’s been more regulation, and a brief reprise in 2020, when due to a new tenant rights law, the New York Department of State halted broker fees being passed down to tenants, if the broker was hired by the building owner. When this was questioned by the Real Estate Board of New York it was overturned a year later.
The Fairness in Apartment Rentals (FARE) Act, sponsored by NYC Council Member Chi Ossé in 2023, was created to prohibit brokers from passing their fees onto tenants when the broker is exclusively representing the landlord’s interests. The law doesn’t prevent the tenant from paying broker fees when the tenant hires the broker — it only protects the tenant from paying fees to a broker that is working for the landlord. The bill received its first hearing on February 28, 2024, and on November 13, 2024 the NYC Council approved the FARE Act with a veto-proof majority. The mayor has 30 days to sign the bill, but if he doesn’t it will become law 180 days later, so the FARE Act will take effect no later than June 11, 2025. Mayor Eric Adams declined to sign.
“The system of forced broker fees is an affront to all New Yorkers,” said NYC Council Member Chi Ossé. “Today, we end that system. The victims of the old paradigm are too many to count. Families unable to have another child, because they cannot afford to move into a larger home. Children aging out of their parents’ homes unable to find a place in their own communities. Victims unable to flee domestic violence. Workers unable to live near their jobs, or in their city at all. Anyone who is hoping to bring their talents and passion to our great city but can’t afford to get through the front door. Today the New York City Council proved it can put the interests of the people first and be an example of good governance. This is a win for our city and for healthy democracy.”
Despite this happy news to tenants, there are concerns that landlords could pass on the broker fees by increasing rent. Rent-stabilized units would be immune from that, as rent increases are determined by the Rent Guidelines Board. For those in non-stabilized units, owners would be weighing the risk that higher rents could price out some tenants and this would diminish the range of applicants and extend vacancies.
On December 16, Real Estate Board of New York (REBNY) sued to stop the FARE Act from being implemented. Their lawsuit claims the FARE Act violates the First Amendment rights of brokers and landlords and may reduce advertisement of open listings.
As of June 11, 2025 the FARE Act is enforceable. Federal Judge Ronnie Abrams rejected the arguments in the REBNY lawsuit that claimed the law compromised free speech and private contracts and went against NYS law. Abrams ruled that the law was a legitimate effort to improve housing access and didn’t violate constitutional protections. There is one claim in the REBNY lawsuit that is still open, but the judge did not allow this to delay the FARE Act from going into effect on the approved date.
REBNY has updated their website with a FARE Act fact sheet that informs landlords of how it impacts them. Violators of the FARE Act could receive a fine of up to $2K.
The Greenline 