NY Lawmakers Curb Listings, Raise Broker Licensing Bar

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Hello, let’s get into today’s news at the intersection of policy and real estate:

State lawmakers passed a watered-down version of a bill restricting private listings.
The Legislature approved a bill raising the bar to become a licensed real estate broker.
A bill that would classify illegal apartment conversions as tenant harassment is gaining steam in the final days of Albany's legislative session.

In this edition we mention: Assembly member Michaelle Solages, state Sen. Nathalia Fernandez, state Sen. James Skoufis, Assembly member Ed Braunstein, Assembly member Linda Rosenthal, state Sen. Zellnor Myrie and others.

We Heard

Pocket listing reforms: The Legislature has approved a bill aimed at curbing private listings, but not before softening some of its contentious provisions. The measure, sponsored by Assembly member Michaelle Solages and state Sen. Nathalia Fernandez, would require agents to place listings on a multiple listing service or public-facing website in a “timely” manner unless a seller opts out in writing. An initial version of the bill would have required listings to be posted within one calendar day. Sellers who choose private marketing would need to sign a disclosure acknowledging that limiting public exposure could reduce buyer interest and offers. The lawmakers also expanded the bill’s reach: the version that passed both chambers applies not only to home sales but also to rental listings. The bill, however, includes a key concession for brokers. Real estate professionals who act in “good faith” and do not knowingly make false or misleading statements would be shielded from liability for violations. At the same time, penalties increased, rising from $2,000 to $5,000. Half of the proceeds of which would be directed to the state's anti-discrimination housing fund. Notably, the bill stops short of regulating how listings are marketed once they appear on a public website. That leaves room for the growing network of brokerage-to-brokerage listing partnerships designed to bypass the MLS. Compass and Redfin launched the first such arrangement earlier this year, followed by Zillow, which has so far partnered with more than 60 brokerages and franchisors, including Keller Williams, REMAX, HomeServices of America and United Real Estate. The measure now awaits the governor’s decision.
Broker in training: The state Senate and Assembly have approved legislation that would tighten broker licensing requirements and send the measure to Gov. Kathy Hochul’s desk. Hochul can sign the bill, veto it or allow it to become law without her signature. Sponsored by state Sen. James Skoufis and Assembly member Ed Braunstein, the bill would double the amount of time an applicant must work as a licensed real estate salesperson before qualifying for a broker’s license, from two years to four consecutive years. Applicants without four years as a salesperson would need to demonstrate at least three years of equivalent experience in the broader real estate industry through a sworn affidavit and supporting documentation. Skoufis told The Real Deal the current requirements are “outdated and misaligned” with other real estate licenses in New York. He said he worked with the New York State Association of Realtors on the bill, which made it a legislative priority for year, and argues that more broker experience “benefits all parties in real estate transactions.” In addition to the four years of work experience, applicants are required to complete 152 hours of approved coursework, including classes covering fair housing and discrimination. The new requirements would kick in six months after the bill becomes law.
Tenant protection: A bill that would classify illegal apartment conversions as tenant harassment cleared the Assembly, marking its first significant progress since it was introduced in 2015. The legislation would expand the legal definition of harassment to include subdividing apartments or erecting and demolishing walls in violation of state or local building codes. Assembly Housing Committee Chair Linda Rosenthal, the bill’s sponsor, said the measure is intended to curb a practice that “has become a tool for property owners to harass tenants out of their homes,” and make it easier to hold bad actors accountable. The Senate companion bill, sponsored by Sen. Zellnor Myrie, remains in committee but could move quickly before the legislative session ends.

Have a tip or feedback? Reach me at caroline.spivack@therealdeal.com.

Bill Tracker

Bill Number	Lead Sponsor(s)	Summary	Committee	Last Action Date / Status
A10679/ S10274	Assembly member Michaelle Solages and state Sen. Nathalia Fernandez	Limits and regulates private listings statewide	Passed the Senate and Assembly, headed to Gov. Kathy Hochul’s desk	June 1
S8870/ A9518	State Sen. James Skoufis and Assembly member Ed Braunstein	Increases the experience and training requirements for individuals applying for a real estate broker’s license	Passed the Senate and Assembly, headed to Gov. Kathy Hochul’s desk	June 1
A02287/ S2542	Assembly member Linda Rosenthal and state Sen. Zellnor Myrie	Adds illegal apartment conversions to the state’s definition of harassment	Passed the Assembly, reported to Senate rules committee	June 1

The Catch-Up

The unintended consequence of stronger tenant protections? More vacancies, longer redevelopment timelines and less investment in aging buildings, according to TRD columnist Erik Engquist.

Assembly Speaker Carl Heastie said lawmakers aim to pass a bill that would put a one-year moratorium on data center construction in the state, reports NY1.

An East New York rezoning has become a model for how to use land use changes to create more housing without spurring gentrification, reports The City Reporter.

Hedge fund billionaire Ken Griffin is expected to owe up to $1.4 million in additional taxes on his Central Park South penthouse and two Upper East Side co-op units under the pied-à-terre tax, reports Business Insider.

The city plans to build a dedicated “busway” — lanes reserved for buses, emergency vehicles and trucks during peak travel times — on a one-mile stretch of 34th Street between Third and Ninth avenues, in hopes of speeding up bus service, reports the New York Times.

The Kicker

“Hopefully, this is the last time I talk to all of y’all,” Assembly Speaker Carl Heastie playfully told reporters in Albany before taking questions about the final days of the state’s legislative session.