| REBNY Says New Broker Law
Violates Free Speech as NYC Says
Contracts Expire in SDNY
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
May 2 – New York City's new
rental broker fee law, which
has landlords paying brokers
instead of tenants paying, has
been sued by the Real Estate
Board of New York.
On May 2 a
hearing was held by U.S.
District Court for the
Southern District of New York
Judge Ronnie Abrams. Inner
City Press live tweeted it.
From the thread:
City: "upfront
fees are a significant barrier
to entering rental market."
Rebuttal by REBNY: "the City
cannot justify this speech
restriction."
Judge
Abrams: Doesn't the TikTok
decision support these
restrictions?
REBNY lawyer:
TikTok is owned by a foreign
sovereign and there are
national security concerns...
Judge: Let's move
to the contracts clause issue
REBNY lawyer: This impairs
landlords'
contracts Judge:
What about tenants who can't
afford the high up-front fee?
REBNY lawyer: On
affordability, on the 40 times
rule, a person making $125,000
[a year] could afford a $3000
rent. If this drives up the
rent, people are hurt.
NYC
lawyer: A renewal of a
contract is a new contract- so
fewer and fewer are covered by
the contracts clause.
Judge: What about
the City Councilmembers'
statements REBNY quotes?
NYC lawyer: The
statement by Speaker Adams, it
referenced the testimony of
opponents Judge: So would
rents go up?
NYC lawyer: That
may be... The statement was
that we are not trying to stop
rents from going up with this
bill. It's that tenants don't
have the market power to fend
off these broker fees, so
people can't move
Judge Abrams:
Thank you, I'll reserve
The case is Real
Estate Board of New York, Inc.
et al v. The City Of New York
, et al., 1:24-cv-9678
(Abrams)
***
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