2024 was a year of major real estate legislation; 2025 is the year of the lawsuits trying to undo them.
In the months leading up to its passage in November, we tracked the progress of the Fairness in Apartment Rental Expenses Act, which required landlords to pay the commissions of the brokers they hire. The Real Estate Board of New York is now suing to block the law, arguing it wrongfully interferes in private contracts and is preempted by state law.
State officials are lining up to support the city in its fight to enact the law; Gov. Kathy Hochul’s office even approached Council member Chi Ossé about making a video to support the FARE Act, which was posted on social media on Wednesday. The measure is supposed to take effect in June, but REBNY has filed a motion to prevent that while the lawsuit makes its way through the courts. We’re still waiting for a decision on that.
That’s not the only real estate-related suit on the books.
Last week, City Council members and others filed a lawsuit seeking to annul the City of Yes for Housing Opportunity (and along with it, the two other City of Yes zoning actions). The complaint alleges that City of Yes violated city and state environmental laws by failing to do a comprehensive review of the impact of the zoning changes.
The unraveling of either of these laws would be a huge deal. I know better than to predict the likelihood that either case will prevail, but the litigation likely means we’ll be talking about these issues for the foreseeable future.
In other lawsuit news, a judge threw out a complaint seeking to halt negotiations over resetting the ground lease rent at Carnegie House. The building’s shareholders could appeal, but they are also hopeful the state legislature will come to the rescue via a law that would cap ground lease rent increases.
If that happens, we can likely expect yet another lawsuit from the real estate industry. REBNY has said the proposed law represents an unconstitutional intrusion into private contracts.
What we’re thinking about: Mayor Eric Adams announced Thursday that he will not run in the June Democratic primary and will instead seek reelection as an independent. Will this in any way win him more support from the real estate industry? Are you someone who has been on the fence about supporting Adams? Are you already fully committed to supporting someone else? Are you unsure? I want to hear from you. Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Public relations firm Risa Heller has rebranded as just Heller. “What began in 2011 as a one-woman operation has since grown into a powerhouse team of 30 talented professionals across offices in New York and Los Angeles,” the company said in an email announcing the change. Apparently, a show based on the firm is also in production, starring Lizzy Caplan, according to Deadline. If the showrunners need any advice about casting annoying real estate reporters, I am very available to provide guidance.
Elsewhere in New York…
— The likelihood that former Gov. Andrew Cuomo will gain the support from the New York Working Families Party, even if he wins the Democratic primary, is “close to none,” party co-director Ana Maria Archila told City & State. “Any candidate is welcome to make the case to the Working Families Party,” she told the publication. “Knowing Andrew Cuomo’s record of sexual harassment, corruption, and abuses of power the likelihood he earns the Party’s support is close to none.” (Cuomo has denied sexual harassment allegations. He has not yet sought the WFP’s endorsement.)
— Gov. Kathy Hochul on Thursday signed another budget extender, which will fund the state government through Monday, Newsday reports. Sen. Liz Krueger, who chairs the Senate Finance Committee, said she is “a bit more optimistic” that the state budget (which was due earlier this week) will be approved late next week, before the legislature breaks for Easter and Passover. “I feel like we have been making some progress over the last few days,” she said.
— Spending on lobbying in New York last year reached an all-time high of $377 million, the Times Union reports. Genting Group, which runs Resorts World New York City in Queens, was the third-highest spender at $3.2 million. Queens Future, formed by New York Mets owner Steve Cohen, spent $2.6 million, earning him fifth place on a list put together by the state Commission on Ethics and Lobbying in Government. Real estate was the fourth most popular subject listed on lobbying records.
Closing Time
Residential: The priciest residential sale Thursday was $9.9 million for a 3,890-square-foot townhouse at 19 Downing Street in the West Village. Tamer Howard of The Corcoran Group had the listing.
Commercial: The most expensive commercial closing of the day was $6.95 million for a 15,000-square-foot industrial property at 60-10 Maurice Avenue in Elmhurst.
New to the Market: The highest price for a residential property hitting the market was $110 million for an 11,480-square-foot condominium at 111 West 57th Street in Midtown West. Nikki Field and Benjamin Pofcher of Sotheby’s International Realty have the listing.
Breaking Ground: The largest new building application filed was for a 29,128-square-foot, 8-story, 74-unit residential project at 3963 Saxon Avenue in Kingsbridge. Nikolai Katz filed the permit on behalf of Yosef Beer.
— Matthew Elo
