Business groups laud failure of Good Cause Eviction bill

Business groups and property owners are celebrating the demise of the proposed Good Cause Eviction bill following the state Legislature’s failure to pass the measure before the end of its session this week. 

The bill, supported by many housing advocates, would have added protections for tenants, including capping annual rent increases to 3 percent, and establishing the right to a free attorney for tenants in the state. 

But the legislation was adamantly opposed by landlords and business organizations, who argued it would stifle development of new rental housing. 

“Good cause eviction” is a marketing label applied to very bad legislation,” Kyle Strober, executive director of the Association for a Better Long Island, said in an emailed statement. “This legislation had the power to halt multifamily development on Long Island, thereby suffocating our economic viability which is already restricted by our lack of housing. Thankfully, our Long Island state representatives and Governor Hochul recognized it for what it is and stood firm in opposition under immense political pressure. This year’s fight felt particularly intense because the stakes were so high because the issue has become a defining ideological position for the industry. We viewed “Good Cause Eviction” as an existential threat not just to the real estate community but to New York State.” 

A group called Homeowners for an Affordable New York said in a statement that the bill was being pushed by “self-described Socialists” attempting to craft housing policy through bullying and intimidation. 

“It is now clear that a majority of lawmakers understand that Good Cause Eviction would increase homelessness, devastate New York’s future housing supply, and wreck local budgets,” the statement read. “Thankfully, they and the Governor held their ground, and common sense prevailed.” 

Earlier in the week, Mike Florio, CEO of the Long Island Builders Institute, emphasized the bill’s potential negative effects on the housing supply and affordability. 

“The implementation of Good Cause Eviction would discourage developers and builders from investing in new rental units, exacerbating the existing housing shortage,” Florio said in a written statement. “We should be focusing on increasing the housing supply to address the affordability crisis, not impeding it.” 

Elected officials who supported the measure expressed disappointment. 

“Unfortunately, it was clear that we could not come to an agreement with the governor on this plan,” read a joint statement from Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, who backed the bill. “It takes all three parties – the Senate, the Assembly and the governor in order to enact legislation into law. There is no debate – New York is experiencing a housing crisis. All three chambers must immediately redouble our efforts and come up with a plan that the governor will sign into law. This plan must prioritize not only the construction of new units of affordable housing but also robust protections for tenants including good cause eviction.” 

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