We wanted to provide you with an update on the Fairness in Apartment Rental Expenses Act (FARE Act) that was introduced and passed by the City Council.
The plaintiffs’ efforts to half the enforcement of the FARE Act in the case of REBNY et al v. City of New York, U.S. Southern District, 24-CV-9678(RA) have been unsuccessful. Plaintiffs argued that the statute violates the First Amendment and the Contracts Clause of the Constitution and will wreak havoc on the City’s residential real estate market, cause rents to rise, and put brokers out of work. By Order dated June 10, 2025, U.S. District Court Judge Ronnie Abrams denied the plaintiffs’ application for an injunction. Although the Contracts Clause claim survived the City’s motion to dismiss, the Court dismissed the First Amendment, NY State Constitution and state law preemption claims in their entirety.
The net effect of the Court’s recent decision allowed the FARE Act to go into effect starting June 11, 2025.
If you have any questions about the FARE Act, please feel free to contact your trusted R&E attorney or Adam Lindenbaum, Member of the firm’s Litigation Department, who authored these industry updates.”