Dear Clients,
We are writing to let you know that DHCR has issued a new Good Cause Eviction Law (“GCE”) Notice (the “Updated Notice”).
The Updated Notice, which is dated “as of February 19, 2025”, includes a list of municipalities in New York State that have opted into GCE and, critically, includes updated Consumer Price Index (“CPI”) percentages which are used to calculate the threshold for presumptively unreasonable rent increases.
Pursuant to GCE, a residential tenant may generally not be evicted other than for “good cause”. The statute enumerates a number of examples of “good cause”, including nonpayment of rent, so long as the rent did not result from an “unreasonable” rent increase. Any rent increase above the “Local Rent Standard” (the lesser of 10% or CPI plus 5%) is deemed to be presumptively unreasonable. The statute requires that DHCR publish a notice setting forth CPI amounts before August 1 of each year.
In the Updated Notice, DHCR has published a CPI of 3.79% in New York City. That means that the Local Rent Standard in New York City is 8.79%, with the result that any rent increase above 8.79% will be deemed presumptively unreasonable. This new Local Rent Standard is .03% lower than the previous one.
The Updated Notice also sets forth new high rent thresholds pursuant to DHCR’s interpretation of the statute’s 245% HUD FMR exemption from GCE. The amounts are lower in New York City than DHCR’s previous figures.
If you have any questions about GCE or the Updated Notice, please reach out to your trusted R&E attorney.