A technical fix to New York's Good Cause Eviction law eliminates a blanket exemption that many building owners thought they had.
Most New York property owners believe that if their building received a Certificate of Occupancy (CO) on or after January 1, 2009, the entire building is exempt from Good Cause Eviction protections for 30 years. That assumption is no longer correct.
Senate Bill S08612, which relates to technical changes to the Good Cause Eviction law, narrows that exemption significantly. Here's what changed and why it matters to your business.
Under the prior law, any building that received its CO on or after January 1, 2009 qualified for a blanket 30-year exemption from Good Cause Eviction requirements. This meant landlords could raise rents and terminate tenancies without the restrictions that applied to older buildings—no caps on rent increases, no requirement to prove just cause for eviction.
The exemption applied building-wide. If your CO was dated 2015, every unit in that building was protected from Good Cause Eviction rules through 2045.
S08612 amends subdivision 8 of section 214 of the Real Property Law (pages 2–3 of the bill) to narrow the exemption to individual newly created units only.
Under the new rule, the 30-year exemption applies only to the specific unit that received its own Certificate of Occupancy, not to the entire building. This distinction matters most in mixed-vintage buildings—properties where some units are newly created and others predate the CO.
For example: If you own a converted warehouse where Unit 101 received its CO in 2020 but Unit 102 was already occupied before that date, Unit 101 remains exempt through 2050, but Unit 102 is now subject to Good Cause Eviction rules immediately.
This change primarily impacts owners of:
• Converted or substantially renovated buildings with mixed unit ages
• Properties where some units were created after January 1, 2009, and others were not
• Landlords who relied on building-wide exemptions when planning rent and lease strategies
If your entire building is newly constructed and every unit received its CO on the same date after January 1, 2009, the exemption still applies building-wide—but only for those specific units with that CO date.
S08612 takes effect immediately and applies to actions and proceedings filed on or after the effective date (§ 8(e)). This means the narrower exemption applies now to any new eviction or lease action you file.
Review your portfolio to identify which units qualify for the 30-year exemption under the new standard. For units that do not qualify, ensure compliance with Good Cause Eviction rules: rent-increase caps and just-cause requirements for lease non-renewals.
If you have pending or planned lease actions, consult with your attorney about how the new rule applies to your specific units and circumstances.
For a detailed breakdown of how S08612 affects your property type and portfolio, industry resources are available through New York real estate trade associations.