NYC Council Passes FARE Act, Banning Forced Broker Fees

This week the NYC Council passed Introduction 360-A, also known as the FARE Act, which will alleviate financial burdens on renters by ensuring that tenants are not forced to pay the fee for the services of a real estate broker they did not hire. Currently in New York City, unlike nearly everywhere else in the country, tenants are often forced to fork over a fee to a broker hired by the landlord, typically equal to between 10 and 15% of the yearly rent. The FARE Act will prohibit landlords from passing that fee onto tenants when the broker is exclusively representing the landlord’s interests.The bill passed with a veto-proof majority of 42-8.

“The system of forced broker fees is an affront to all New Yorkers,” said Council Member Chi Ossé, who sponsored the bill. “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.”

“The rising cost of rent in NYC has been exacerbated by broker fees that tenants are required to pay even when it’s the landlord who has retained the broker,” said New York City Central Labor Council, AFL-CIO President Vincent Alvarez. “The resulting upfront costs of moving have made it even more difficult for working New Yorkers to find affordable housing within New York City. Thanks to Councilmember Ossé and his colleagues in the City Council, with the passage of the FARE Act we’re one step closer to ensuring that everyday working families are able to live and thrive in New York.” Read more in The New York Times, AP News, Gothamist and Curbed.