Important Update on Good Cause Eviction (GCE) Law and DHCR Notice
Since August 18, 2024, New York property owners have been required to provide tenants with a Good Cause Eviction (“GCE”) Law Notice when taking certain actions, such as offering new leases, renewing existing leases, or issuing non-renewal notices. This notice must be included in all leases, renewals, and predicate notices, and applies to all property owners, including those exempt from the GCE law.
Recent DHCR Notice and Updated Rent Standards
The New York State Division of Housing and Community Renewal (DHCR) recently issued an updated GCE Notice, which includes:
- An updated list of municipalities that have opted into the GCE law.
- Revised Consumer Price Index (“CPI”) figures used to calculate the local rent standard, which determines when rent increases are presumptively unreasonable under the GCE law.
For New York City, DHCR published a CPI of 3.79%, resulting in a new local rent standard of 8.79% (CPI of 3.79% plus 5%). Rent increases above this threshold will generally be deemed presumptively unreasonable. This updated standard reflects a slight decrease of 0.03% from the previous standard.
DHCR also updated the high rent thresholds based on its interpretation of the statute’s 245% HUD Fair Market Rent (FMR) exemption. These amounts for New York City are lower than those previously published.
Key Dates and Considerations
- DHCR is required by statute to publish, on or before August 1st each year:
- The Fair Market Rent (FMR) and 245% FMR thresholds for each unit type, by county.
- A list of municipalities outside NYC that have adopted local GCE laws.
- The New York State CPI, which determines the local rent standard applicable to GCE-covered renewal leases.
- To date, DHCR has issued three GCE-related notices (August 1, 2024; February 19, 2025; April 23, 2025).
- The most recent April 2025 notice updated the participating municipalities but did not change the CPI figure.
- The U.S. Bureau of Labor Statistics reported a 3.4% CPI for New York City as of June 11, 2025, which could result in a lowered local rent standard of approximately 8.4% if reflected in upcoming DHCR notices (expected around July 15, 2025). The next CPI report is due on July 15, but there is no guarantee that this will coincide with DHCR’s next notice.
What This Means for Property Owners
- The GCE Law has been in effect since August 18, 2024 (i.e., 120 days after it was signed).
- Property owners should monitor DHCR notices carefully each year for updates to the CPI and HUD FMR percentages.
- Rent increases above the published local rent standard may be challenged as presumptively unreasonable under the GCE law.
- Ensure GCE notices are included in all relevant lease and renewal documentation as required by law.
If you have any questions about the GCE law, the recent DHCR notices, or how these updates affect your properties, please do not hesitate to reach out to your trusted attorney at Kucker Marino Winiarsky & Bittens, LLP.