Chi Ossé’s broker fee bill set to pass City Council

The City Council is set to pass legislation Wednesday that would bar landlords from charging renters costly broker fees if the renter didn’t acquire the services of the broker. The bill, which has faced fierce opposition from real estate interest groups like the Real Estate Board of New York, has 32 sponsors in the the City Council, but is expected to pass with a veto-proof majority of at least 35 votes in favor. 

Council Member Chi Ossé, who first introduced a version of this bill – the Fairness in Apartment Rental Expenses (FARE) Act – last session, sees it as the most impactful legislation he’s worked on in nearly three years in office. “This city is way too expensive, and we should not be throwing our hard-earned dollars to fees and expenses that we should not be paying for,” Ossé told City & State on Tuesday. City & State first reported last month that a vote was scheduled on the bill.

The bill would require that whichever party obtained the services of a broker would be the one to pay their fee – a change from what some renters currently experience in being charged the fees despite the landlord usually being the party that chooses to use a broker. The legislation was revised in the last few weeks with more details about what constitutes a listing agent, and to enact penalties for violation of the law. 

Ossé credited the coalition assembled in support of the legislation – including the Retail, Wholesale and Department Store Union, and the listing site StreetEasy – with helping to get it over the finish line. Ossé, who has a Gen Zer’s easy command of social media, also noted they got “really loud” about it on platforms like TikTok. “We kind of made it hard to look away from this bill,” he said.

But Ossé is aware that Wednesday’s vote may not be the final finish line for the legislation. REBNY, one of the leading groups opposing the bill, has cast it as detrimental to both the industry and tenants, arguing that it will increase costs for renters and endanger brokers’ jobs. “Wednesday’s vote is yet another instance of prioritizing ideology over economic and practical reality when it comes to the city’s rental housing stock. The FARE Act will make it harder for tenants to find housing, raise rents, and make the hard work of real estate agents even more difficult,” REBNY president James Whelan said in a statement, adding that they would continue to pursue “all options” to fight the bill, in apparent response to a question about whether they would file a lawsuit if it is passed and implemented.

Mayor Eric Adams has not said definitively whether he would sign or attempt to veto the legislation. “I think the bill has the right intention, but sometimes good intentions do not get the results you’re looking for,” Adams said on Tuesday, raising concerns that the cost of a broker fee will be passed onto tenants elsewhere at a higher rate, through an increased monthly rent. Ossé, in response, accused Adams of parroting REBNY talking points. 

Supporters of the FARE Act are set to rally ahead of the City Council stated meeting at City Hall on Wednesday.