Council passes broker fee bill with veto-proof majority

November 14, 2024 Brooklyn Eagle Staff

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CITYWIDE – THE CITY COUNCIL on Wednesday passed Councilmember Chi Osse’s Fairness in Apartment Rental Expenses Act with a veto-proof majority of 48 in favor, 8 opposed, reports NBC News. The bill had long since garnered majority approval in the Council. Backers were concerned whether FARE could overcome a potential veto by the mayor, who had signaled ambivalence, but the legislation managed to pick up enough support in the official voting to pass that threshold.

Broker fees must, upon the bill’s implementation, be paid by the party who hires a broker, typically property owners. Supporters say this will bring down broker fees, as landlords could have greater negotiating power, and allow for greater mobility among renters. Mayor Adams will have 30 days to sign the bill into law, after which it becomes law automatically.

New York and Boston are the only major U.S. cities in which broker fees are borne by renters, according to experts; a 2023 study by StreetEasy found that New Yorkers pay on average $10,000 in up-front costs when moving to a new rental, with the highest expense being the broker fee.

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