In December 2024, the Rochester City Council passed a landmark piece of legislation that will have significant implications for both landlords and tenants within the City of Rochester. The Good Cause Eviction (“GCE”) law was approved to protect tenants from arbitrary eviction and ensure greater stability in rental housing. Rochester now joins a growing list of municipalities across New York State that have adopted tenant protections, a trend initiated by similar legislation passed in the New York City metro area.
This law, originally signed by Governor Kathy Hochul in April 2024, marks a significant shift in housing policy, expanding protections to upstate New York municipalities like Rochester. Prior to this change, laws such as rent stabilization and good cause eviction protections were only applicable to New York City and its suburbs. With the passing of the GCE law in Rochester, many other cities in New York State, including Albany, Beacon, and Ithaca, have also adopted similar measures, demonstrating the growing momentum behind protecting tenant rights in the region.
Understanding the Key Provisions of the Good Cause Eviction Law
At its core, the GCE law aims to provide tenants with more stability and security by restricting landlords’ ability to impose unreasonable rent increases and evict tenants without just cause. Below are some of the most important elements of the law:
Rent Increase Limitations:
The GCE law imposes strict limits on rent increases, capping them at either 10% or 5% plus the Consumer Price Index (“CPI”), whichever is lower. This cap will prevent landlords from imposing excessive rent hikes, providing tenants with a predictable and stable cost of living. Landlords must be mindful of these limitations when renewing leases or adjusting rent.
Right to Renew Leases for Tenants in Good Standing:
One of the primary protections afforded by the GCE law is the tenant’s right to renew their lease, provided they have complied with the terms of the lease agreement and have not violated any rules. This gives tenants greater peace of mind, knowing that they are not at risk of eviction simply because their landlord chooses not to renew the lease.
Grounds for Eviction:
While the GCE law limits evictions in many cases, it does still allow for eviction under specific conditions. These include:
Nonpayment of rent
Violation of a substantial lease term
Committing or permitting a nuisance
Using the premises for illegal activities
Unreasonably denying the landlord access to the unit for repairs or showing the property
The landlord’s desire to demolish the unit or convert it into owner-occupied housing
Withdrawal of the unit from the rental market
The tenant’s refusal to agree to reasonable lease changes upon renewal
For landlords, it is crucial to be fully aware of these permissible eviction grounds, as any eviction outside of these specific reasons may be subject to legal challenge under the GCE law.
Exemptions from Good Cause Eviction Protections:
The GCE law includes several exemptions that landlords should be mindful of. Properties may not be subject to the GCE protections if they meet one or more of the following criteria:
Small Landlords: Landlords who own no more than 10 rental properties may be exempt from the law’s provisions, as defined by the state statute.
Owner-Occupied Properties: Units in buildings that are owner-occupied with no more than 10 rental units may be exempt.
Government-Regulated Housing: Properties subject to rent regulation or affordable housing programs may also be exempt from the GCE law.
Seasonal or Transient Housing: Properties used for seasonal purposes, such as summer homes or transient hotel units, are also excluded from the law.
Higher Rent Properties: Units with a monthly rent that exceeds 245% of the fair market rent, as published by the U.S. Department of Housing and Urban Development, are exempt.
Implications for Landlords in Rochester
For property owners, the passage of the GCE law presents several challenges and requires immediate attention to ensure compliance with the new regulations. Here are key considerations for landlords:
Lease Renewal and Rent Increases:
Landlords will need to carefully review all current leases and any planned renewals. Given the rent increase limitations, landlords may need to adjust their rent-setting practices to stay within the prescribed cap, taking into account the CPI. Additionally, any rent increases above the limit could result in legal disputes with tenants.
Eviction Procedures:
Landlords should be prepared to prove valid grounds for eviction. If a tenant challenges an eviction, the landlord may need to demonstrate that the cause for eviction falls within the permissible grounds outlined by the GCE law. Nonpayment, substantial violations, and nuisance are the most common eviction grounds, but landlords should keep thorough records to support any legal action.
Notice Compliance:
Under GCE, landlords will be required to provide written notice regarding the applicability of the law to their rental unit. This notice must specify whether the property is subject to the protections of GCE, and if exempt, must state the reason for the exemption, such as small landlords owning fewer than 10 rental units.
Implications for Tenants in Rochester
For tenants, the GCE law represents a major step forward in housing stability and fairness. Tenants are now afforded enhanced protections against arbitrary eviction and unreasonable rent hikes, making it more difficult for landlords to disrupt their living arrangements.
Increased Lease Security:
The right to renew a lease in good standing is one of the most significant benefits for tenants under the GCE law. Tenants now have greater assurance that they will not face eviction or the loss of housing unless there is a valid reason, thus promoting long-term stability.
Rent Protection:
The law provides tenants with protection against sudden and excessive rent increases, which have become a growing concern in many rental markets. The cap on rent hikes ensures that tenants’ rent remains in line with broader economic trends, offering a crucial safeguard against financial instability.
Moving Forward: Compliance and Practical Considerations
As Rochester prepares for the full implementation of the GCE law, it is essential for both landlords and tenants to fully understand their rights and obligations. For landlords, this means revisiting lease agreements, updating rent policies, and ensuring compliance with the new rules on eviction grounds and exemptions. Tenants should familiarize themselves with their rights under the law to ensure they are not subject to unjust eviction or rent increases.
Whether you are a landlord seeking to ensure compliance with the GCE law or a tenant who needs guidance on your newly granted rights, we are ready to help. Please contact Kyle C. Pittman or any of our Real Estate & Finance attorneys with questions at (585) 258-2800 or visit underbergkessler.com to schedule a consultation.