Legislative Update

GOOD CAUSE EVICTION

Enacted on April 20, 2024, New York’s Good Cause Eviction Law (“GCE”) introduces significant changes to the rights and obligations of certain landlords and tenants by limiting evictions, mandating lease renewals, and capping rent increases. The law is effective immediately and applies to all new and renewal leases in New York City and in any other villages, towns, or cities that opt into GCE.  

Under GCE, landlords may only evict a tenant if they can demonstrate "good cause.”  What constitutes “good cause” is statutorily defined and examples include non-payment of rent (unless the rent is deemed "unreasonable"), nuisance behavior, malicious or grossly negligent damage to the property, or unreasonable refusal of access to the premises for necessary repairs.  Landlords must obtain a court order to remove a tenant, demonstrating good cause, including when a landlord seeks to remove a tenant by not renewing the tenant’s lease.    

Rent increases are presumed unreasonable if they exceed the lower of the inflation index or 10%.  For New York City, the inflation index is 5% plus the annual percentage change in the consumer price index for all urban consumers.  Other villages, towns, or cities in New York State that choose to opt-in to the Good Cause law can set their own rent exemption levels, up to 245% of the fair market rent.  If not specified, the default exemption is for rents above 245% of the fair market rent, similar to New York City.

While GCE specifically exempts manufactured housing communities, who are subject to their own unique rent control and eviction requirements, the law imposes sweeping notice requirements on all landlords, regardless of whether they are subject to GCE.  This notice requirement requires landlords to include a standard form in their leases and renewals to inform their tenants whether GCE applies.  Real Property Law § 231-c sets forth the required language for the notice, which must be included within or appended to all initial leases, lease renewals, 14-day written demand of rent notices, and RPAPL petitions.  Under GCE, MH Community Owners cannot satisfy the notice requirement by posting it on a website or in a public location accessible to tenants – it must be incorporated in the lease.  A copy of the notice is attached.  MH Community Owners should contact their attorneys to ensure their leases and renewals are up-to-date and include this notice.

CANNABIS

On March 31, 2021, the Marijuana Regulation & Taxation Act (“MRTA”) was signed into law, legalizing cannabis in New York State.  The MRTA allows adults 21 years or older to consume cannabis in a private home or in most places tobacco can be consumed, except for consumption in a motor vehicle, a private business, cigar bars, or on federal property.  That said, cannabis is categorized as a Schedule 1 substance at the federal level, and the manufacture, distribution, or possession of cannabis is a federal criminal offense.  While federal agencies have not devoted resources to prosecuting cannabis-related offenses conducted pursuant to a state-regulated cannabis program, the inherent tension between federal and state law has raised questions about the extent to which landlords can and should limit cannabis growing or consumption on their properties.  

To that end, the NYS Office of Cannabis Management (“OCM”) released guidance regarding landlords’ rights and obligations governing cannabis use by tenants.  Residential landlords should be aware that it is now legal for adults 21 years or older to possess 3 ounces of cannabis and 24 grams of cannabis concentrate (i.e., edibles, oil).  New Yorkers 21 years and older can also grow up to six plants in their home for personal use (3 mature plants and 3 immature plants) and up to twelve plants per household (6 mature plants and 6 immature plants). 

In its guidance, OCM notes that, despite cannabis being illegal under federal law, landlords cannot refuse to rent to a tenant who consumes cannabis.  At the same time, landlords, property owners, and rental companies can ban the smoking or vaping of cannabis on their premises, except with respect to tenants registered with the NYS Medical Cannabis Program.  Those tenants have the right to consume medical cannabis in their homes, including through smoking or vaping.  However, if landlords are at risk of losing any applicable federal benefits, they may restrict the use of medical cannabis by tenants and refuse to lease space to or penalize tenants growing cannabis.  While OCM does not specify which federal benefits may apply, participation in HUD’s Section 8 program is one example that may be relevant to landlords.  MH Community Owners should consult their attorneys to discuss whether they receive federal benefits that could be implicated by their tenants’ cannabis use, as well as the costs/benefits of limiting cannabis use by their tenants.

SERVICE LINE INVENTORY REPORTING (Ch. 730 of the Laws of 2023)

New York State’s recently enacted Lead Pipe Right to Know Act (“Right to Know Act”) codifies requirements by the US Environmental Protection Agency and guidance from the NYS Department of Health (“DOH”) requiring public water system to develop a comprehensive inventory of all the service lines in its system by October 2024, and to regularly update those inventories with new information.  Policymakers can use this information to gauge the extent and location of lead service lines and appropriately allocate state and federal resources for their replacement.  The Right to Know Act also requires DOH to make those inventories available on its website and to create interactive maps allowing New Yorkers to determine their risk of lead exposure.

Pursuant to EPA regulations and the Right to Know Act, certain public water systems must submit inventory information to DOH by October 16, 2024.  This requirement applies to: 1) Community Water Systems (“CWS”), defined as those serving at least 15 service connections used by year-round residents or regularly serves at least 25 year-round residents, and 2) Nontransient Noncommunity Water System (“NTNCWS”), defined as a PWS that is not a CWS but is a subset of a noncommunity water system that regularly serves at least 25 of the same people, four hours or more per day, for four or more days per week, for 26 or more weeks per year.

In their service line inventory guidance, DOH urges CWS and NTNCWS to utilize its service line inventory template, linked here.