Newburgh Becomes 6th Upstate City to Opt Into Good Cause
Newburgh Closes LLC Loophole To Cover As Many Tenants As Possible
Newburgh, NY – Newburgh City Council voted unanimously to opt into Good Cause Eviction Protections on Monday night, becoming the sixth city to adopt the tenant protections following the passage of state authorizing legislation in April. Good Cause Eviction Protections will protect most Newburgh renters from rent hikes and unfair evictions, as well as guarantee lease renewals to tenants who’ve been paying rent and following their lease.
Tenants covered by Good Cause will be able to challenge rent hikes that are more than the Consumer Price Index (CPI) + 5% (8.82% as of August 2024) or 10%, whichever is lower. Landlords will have to demonstrate that they have a “Good Cause” in order to evict or non-renew a tenant, including not paying rent, lease violations, and nuisance activity.
“I’m proud to vote today to re-establish basic protections against price-gouging and displacement for tenants in the City of Newburgh,” said Newburgh City Council Member Giselle Martinez. “Good Cause Eviction is an essential tool to level the playing field for tenants and the increased housing stability will benefit all our neighborhoods. This is just the beginning – we know that the affordable housing crisis in Newburgh requires action at all levels and we’ll keep working to stabilize rents and expand the supply of truly affordable homes.”
Newburgh previously passed Good Cause Eviction in 2021, but a judge nullified the law, ruling that it conflicted with state law at the time. Newburgh also became the second city in the Hudson Valley to adopt rent stabilization under the Emergency Tenant Protection Act in 2023, but a judge ruled against the city, citing flaws with the vacancy study on which the city’s eligibility to declare a housing emergency relied.
“Passing a strong version of Good Cause Eviction is an important step to protect Newburgh tenants from the housing crisis decimating our city,” said Rene Mejia Jr., Newburgh Community Organizer at For the Many. “But it’s not the end of the road. The City of Newburgh must complete a new vacancy study as soon as possible so the Council can once again declare a housing emergency and establish rent stabilization. For the Many will continue organizing to ensure the study is done in a timely manner and renters get the relief they need and deserve.”
“Newburgh is a city of renters but our landlords treat our homes like their personal ATMs. Predatory landlords in Newburgh have hiked rents astronomically year after year – and sued the City of Newburgh every time our city leaders tried to put reasonable policies in place to secure housing stability for our community. We’re celebrating the passage of Good Cause today as the next step to end unfair evictions and unconscionable rent hikes, and will keep fighting to bring rent stabilization back to Newburgh,” said Mark Sanchez, Newburgh tenant, teacher, and member of Mid-Hudson Valley Democratic Socialists of America.
To be eligible for Good Cause, Newburgh tenants must live in a building built before 2009; pay less than $4,895 per month for a one bedroom (345% of Fair Market Rent); rent from a landlord who owns more than 1 rental unit total; not live in an owner-occupied building with fewer than 11 units, not live in a co-op or condo; not rent their home as part of an employment agreement; not live in manufactured housing; and not live in rent stabilized, subsidized, or public housing which already have such lease protections.
Like Albany, Beacon, Kingston, Poughkeepsie, and Ithaca, Newburgh’s version of Good Cause closes the ‘LLC loophole’ by narrowing the real estate portfolio exemption to 1 rental unit, preventing predatory landlords from evading the law by hiding their portfolios behind anonymous Limited Liability Corporations (LLCs). Like other cities, Newburgh also raised the high rent exemption threshold to 345% of Fair Market Rent.
“Tenants in every part of the state deserve and demand housing stability – and we won’t stop fighting until every New Yorker has a safe, stable home,” said Cea Weaver, Coalition Director of Housing Justice for All. “Governor Hochul may have left upstate renters to fend for themselves, but tenants are organizing everywhere we live to protect our homes.”
###
Housing Justice for All is a statewide coalition of more than 80 organizations representing tenants and homeless New Yorkers, united in our fight for housing as a human right.