On April 20, 2024, Governor Kathy Hochul signed Good Cause Eviction into state law, and it took effect immediately, altering the rules for millions of market-rate rental units across New York. For landlords and investors, this is not a distant policy change: it affects how you raise rents, how you remove tenants, and how you underwrite income property today.
In my 25-plus years working with buyers, sellers, and investors across all five boroughs, I have watched rent regulation expand incrementally. Good Cause is the broadest extension of tenant protections to market-rate units in a generation.
What Good Cause Eviction Does
Rent increase cap: For covered units, landlords may not raise rent by more than 10% per year, or CPI plus 5%, whichever is lower. With CPI running around 3-4%, the effective ceiling has been roughly 8-9% annually.
Eviction restrictions: Landlords must state a specific lawful reason to non-renew a lease. Accepted grounds include nonpayment, substantial lease violations, nuisance, owner or family use, and building demolition.
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Which Properties Are Covered
| Property Type | Covered? | Notes |
|---|---|---|
| Market-rate units, 10+ unit buildings | Yes | Core coverage |
| Rent-stabilized units | No | Already governed by ETPA |
| New construction (within 30 years) | No | 30-year exemption window |
| Owner-occupied, 10 or fewer units | No | Small landlord exemption |
| Condos/co-ops, owner-occupied | No | Does not apply to owner-occupants |
| Subsidized housing (LIHTC, Section 8) | No | Separate federal/state programs |
Rent Increase Cap in Practice
With CPI averaging around 3.5% through 2025, the effective annual cap for most covered units is approximately 8.5% (3.5% + 5%). The law sets 10% as an absolute ceiling regardless of inflation.
How This Changes Multifamily Underwriting
Good Cause adds a ceiling to the revenue growth side of the NOI equation. In the Bronx, where co-ops and small multifamily buildings trade at cap rates in the 4-to-5% range, investors who underwrote aggressive rent bumps on covered buildings need to revise those projections.
Audit Your Portfolio
- Confirm which buildings have 10 or more units
- Identify all market-rate tenancies
- Check construction date against 30-year window
- Note any owner-occupied units
Update Your Lease Process
- Calculate the lower of 10% or CPI + 5% before renewals
- Document basis for any non-renewal in writing
- Consult housing attorney for owner-use grounds
- Revise renewal templates for compliance
Evaluating a Multifamily Investment?
Milton Coste has 25+ years of experience across all five boroughs and can help you assess Good Cause exposure before you close.
Schedule a Free ConsultationFor buyers evaluating Queens and Brooklyn multifamily properties, the exemption analysis should be part of every due diligence checklist. See the NYC market report index covering all 169 neighborhoods.
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