Key real estate law changes for 2025

On Behalf of | Feb 3, 2025 | Co-ops and condominiums, Landlord & tenant representation, Real estate law |

As of January 1, 2025, several significant real estate laws have been enacted in New York, aiming to address housing affordability and availability, streamline development processes and change the economic dynamic of the rental market. These changes reflect the state’s ongoing efforts to address its priorities in making New York’s housing market more accessible to all residents. Here are some of the key updates:

  1. Zoning reforms: The City Council’s “City of Yes: Housing Opportunity” (COYHO) amendments to New York City’s Zoning Resolution aim to address the housing crisis. These reforms are aimed at increasing the supply of housing (not necessarily affordable housing) include increasing the base floor area ratio (FAR) in many mid- to high-density districts, creating two new high-density districts, and establishing a Universal Affordability Preference (UAP). The UAP allows additional floor area for affordable housing, paired with the state’s 485x real estate tax abatement program.
  2. Office-to-residential conversions: The COYHO amendments also simplify the regulations for converting older office buildings to residential use. This change extends the right to convert to a larger group of commercial buildings existing as of December 30, 1990, in all five boroughs. The new rules permit various housing types, including single-room occupancy options and co-living conditions.
  3. Parking requirements: New rules have rolled back costly parking mandates for residential construction near mass transit. The city now requires zero parking for multifamily developments in most of Manhattan and other areas close to mass transit stations. This change aims to make residential projects more financially feasible by reducing excavation and sub-surface development costs.  Residents complain that the lack of this requirement will overburden already crowded parking conditions in their neighborhood;
  4. Criminal background checks: A new housing law substantially restricts inquiry into criminal convictions for housing applicants.  These rules are applicable to cooperatives and condominiums as well. This law mandates certain disclosure and approval procedures, outlines specific exemptions and limits inquiries into specific time frames.  Boards and managing agents must make sure that their admission applications and questions asked at interviews do not run afoul of the new laws as penalties can be substantial.
  5. Broker Fees: The Fairness in Apartment Rentals Act shifts the responsibility of paying the broker to the person who hired them. This means tenants are no longer forced to pay for a leasing broker they didn’t hire.  While this will reduce the financial burden on renters it does shift them to the landlord which may result in higher rents being asked for apartments.

Contact the firm to learn more

Those with questions about these changes or others involving real estate laws and regulations can consult with a New York attorney who handles real estate matters and can answer questions like those you will find at Tane Waterman & Wurtzel, P.C.