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Housing Transparency Law In New York City. Should It Apply Statewide?
By David Carlucci
The FARE (Fairness in Apartment Rental Expenses) Act— is New York City’s landmark policy addressing housing affordability and transparency that took effect on June 11, 2025. This new law covers all five boroughs of New York City: Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. It does not cover rentals elsewhere in New York State.
What Is the FARE Act?
The FARE Act standardizes how rental costs are calculated and ensures tenants are provided clear, upfront breakdowns of all rental expenses. Previously, renters often encountered unexpected or inconsistent charges, making it difficult to budget or understand exactly what they will be paying for. FARE eliminates such ambiguity by requiring landlords and agents to itemize every charge and to avoid hidden or compounding fees.
Key Provisions
- Transparency in Rental Fees: Landlords and their agents must provide tenants with an explicit, signed, itemized list of all costs tied to an apartment—including rent, utilities, amenities, and any service fees—before the lease is signed. Rental ads must likewise disclose every fee.
- Standardization of Charges: Regular charges, like amenity or application fees, must follow clear and standardized formulas, eliminating arbitrary surcharges and promoting fairness citywide.
- Caps on Fees: Certain fees (such as applications or pets) are capped to prevent price gouging and to make costs predictable.
- Fair Security Deposits: The Act ensures that security deposits are reasonable and cannot be unreasonably withheld; landlords must provide documentation for any deposit retention.
- Dispute Resolution: Tenants are given straightforward mechanisms to dispute illegitimate charges without costly litigation.
Why Does FARE Matter?
Renters across New York City have long felt the sting of hidden or confusing fees that can quickly transform an affordable apartment into an out-of-reach expense. With the FARE Act, both renters and landlords benefit from clear expectations: misunderstandings and legal disputes drop, while stable tenant-landlord relationships rise. FARE is about leveling the playing field—making sure everyone understands the rules before signing a lease.
How Is It Enforced?
The FARE Act is enforced by New York City departments overseeing housing and consumer affairs. Landlords and agents violating the law may be fined, and tenants can file complaints about illegal or undisclosed charges. Tenants also have avenues to recover improperly paid broker fees and unlawful costs.
Now that you understand how the FARE Act works in NYC. What do you think about expending the FARE Act beyond NYC to cover the rest of New York State? Let me know your thoughts!
David Carlucci consults organizations on navigating government and securing funding. He served for ten years in the New York Senate.
