Next week, the FARE Act goes into effect. Or does it?
The Fairness in Apartment Rental Expenses, or FARE, Act, which bars forcing tenants to pay for rental brokers hired by landlords, is slated to go into effect June 11.
The Real Estate Board of New York filed a lawsuit challenging the law in December. The following month, it filed a motion seeking a preliminary injunction to prevent the law from going into effect while its lawsuit makes its way through the court. The city filed a motion to dismiss REBNY’s lawsuit in February.
Judge Ronnie Abrams has not yet decided what to do with either motion, keeping us all in suspense.
She could do one of three things:
- Grant REBNY’s motion, halting the law from going into effect until REBNY’s lawsuit is heard.
- Dismiss REBNY’s lawsuit.
- Deny the city’s motion to dismiss, while also rejecting REBNY’s motion to temporarily prevent the law from going into effect.
Abrams indicated in a hearing held last month that she would issue a decision before June 11.
REBNY shared a fact sheet with its members this week, providing some guidance on how to abide by the law, should it go into effect. Among other things, the group advises owners to only publish listings where they expect brokers to collect their own fee (from tenants) on their own websites or social media, and to attach a disclaimer: “This advertisement is for informational purposes only. This advertisement is not intended to create an agency relationship between a real estate licensee and the landlord. This advertisement should not be re-published.”
The warning against republishing is a nod to the law’s assertion that a broker publishing a listing should be viewed as having been hired by the landlord.
What we’re thinking about: If I’m being honest, I’ve been thinking — probably too much — about former Gov. Andrew Cuomo’s answer to the New York Times about his go-to bagel order. An english muffin?! Obviously, there are more important issues at hand. Did you watch the first Democratic mayoral debate Wednesday night? What answers struck you the most? Send a note (and also your go-to bagel order) to kathryn@therealdeal.com.
A thing we’ve learned: My excessive coffee drinking is aging me like a fine wine? A new study of more than 47,000 women, dating back to the 1970s, suggests a possible link between coffee drinking and healthier aging, the New York Times reports. The study has not been published or peer reviewed yet, but I stopped reading after seeing that drinking seven cups of coffee a day was possibly good for me.
Elsewhere in New York…
— Amtrak plans to begin running a direct train from Penn Station to Ronkonkoma on Long Island, Gothamist reports. The agency would redirect three off-peak trains heading east out of Penn Station to Long Island, instead of to New England. Three trains would also run between Ronkonkoma and Washington, D.C.The plan requires buy-in from the MTA, which owns the Long Island Rail Road tracks that would be used.
— Airbnb says it plans to spend $250,000 in support of Public Advocate Jumaane Williams’ re-election campaign, City & State reports. Williams has been critical of the company, but told City & State that he wants to address concerns of small homeowners without undermining Local Law 18, signaling that he is perhaps amenable to changing the law restricting short-term rentals.
Closing Time
Residential: The top residential deal recorded was $6 million for a 3,780-square-foot condominium unit at 145 East 76th Street on the Upper East Side. Donna Strugatz at Serhant had the listing.
Commercial: The top commercial deal recorded was $5.6 million for an 11,470-square-foot industrial property at 37-03 Woodside Avenue in Woodside.
New to the Market: The highest price for a residential property hitting the market was $22 million for a 4,595-square-foot, sponsor-sale condo at 430 East 58th Street in Sutton Place. Corcoran Sunshine has the listing.
Breaking Ground: The largest new building application filed was for a 69,944-square-foot, six-story, 92-unit residential project at 541 Bay Street in Stapleton. Naresh Mahangu of NY Building Associates on behalf of Alex Levin of NextHome Prestige.
— Matthew Elo
