New York State Bill Targets Private Listings

15 minutes read

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

A state bill would crack down on private listings with new regulatory hurdles.
Nonprofits and community land trusts could get first dibs on New York City-owned sites slated for affordable housing under a revived proposal.
A new State Senate bill that follows New York City’s lead would give tenants statewide protection from discrimination based on their immigration status.
A random audit program aims to scrutinize real estate law firms’ handling of client money.

In this edition we mention: Assembly member Michaelle Solages, Vice President and Chief Lobbyist for the New York State Association of Realtors Michael Kelly, City Council member Lincoln Restler, State Sen. Rachel May and others.

We Heard

Private listings crackdown: A New York state bill aims to curb private listings. Introduced Friday by Assembly member Michaelle Solages, it would require sellers’ agents to publicly market residential properties within one day of signing a listing agreement. Brokerages could still market homes privately if sellers give written consent after receiving a state disclosure outlining the “risks and tradeoffs” of withholding a listing. Sellers could also opt out for “bona fide privacy [and] safety” reasons. “A healthy housing market depends on transparency,” Solages said. “When deals happen behind closed doors it shuts people out.” The Department of State would enforce the measure, with penalties including fines or even suspending or revoking a broker or salesperson’s license. The bill puts New York at the center of the growing fight over private listings and could be a blow to firms like Compass, which rely on the model. Michael Kelly, vice president and chief lobbyist for the New York State Association of Realtors, said the group has not taken a position on the bill yet but supports ensuring consumers understand the trade-offs of private listing networks.
Nonprofit first dibs for NYC-owned land: A City Council bill would prioritize nonprofit developers and community land trusts for city-owned sites slated for affordable housing, replacing the common practice of awarding them to for-profit firms. Introduced by Council member Lincoln Restler, the measure would require properties to go to nonprofits unless none qualify or the sale falls under state law. It builds on a 2021 proposal by then-Council member Brad Lander, now defining nonprofit ownership as a controlling majority stake. The change would still allow minority- and women-owned businesses to partner with nonprofits. “Public land is a precious commodity,” Restler said, “on which we need to maximize the deepest level of affordability to prevent displacement.” Restler believes the bill aligns with the Mamdani administration’s affordability agenda and has a better shot of making it through the Council this go around. To date, the bill has 20 co-sponsors, including Council member and housing and buildings committee chair Pierina Sanchez.
Immigrant tenant protections: A State Senate bill would bar landlords across New York from discriminating against renters based on their immigration status. Introduced last week by State Sen. Rachel May, the measure would ban landlords and their agents from asking about immigration status or requiring citizenship documents. Similar protections already exist in New York City and would extend statewide under the bill. “Threatening to report a tenant to ICE is coercion,” May said. “This legislation makes that clear: no landlord can use immigration status as a weapon, anywhere in New York.” The bill would also bar landlords from disclosing a tenant’s immigration status to federal authorities unless required to by a court order.

Real estate escrow theft: State Sen. Siela Bynoe and Assembly Judiciary Committee Chair Charles Lavine introduced a bill targeting theft of real estate escrow funds. The measure would create a state-run, random audit program to ensure law firms properly handle client money and maintain required records. The Long Island lawmakers acted after a Newsday investigation found that the New York State Lawyers’ Client Protection Fund paid more than $112 million to victims of escrow theft. If enacted, law firms handling escrow funds would face a potential audit at least once every five years as a deterrent and an incentive to keep thorough records.

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	Next Scheduled Event
A10679	Assembly member Michaelle Solages	Would limit and regulate private listings statewide	Referred to the Judiciary Committee	March 20	None yet
Intro. 650	City Council member Lincoln Restler	Would prioritize nonprofits and community land trusts to build affordable housing on New York City-owned land	Referred to the Committee on Housing and Buildings	Feb. 12	None yet
S9490	State Sen. Rachel May	Would bar landlords statewide from discriminating against renters based on their immigration status	Referred to the Committee on Investigations and Government Operations	May 18	None yet
S9129/A10145	State Sen. Siela Bynoe and Assembly member Charles Lavine	Would create a state-run, random audit program to ensure law firms properly handle client money	Referred to the judiciary committees in both chambers	Feb. 26	None yet

Around Town
The City Planning Commission is hosting an info session Wednesday on proposed rules for the city’s affordable housing fast track initiative, which will create expedited review for affordable housing projects in the 12 community districts with the lowest production rates over the previous five years. The Zoom webinar begins at 6 p.m.

The Catch-Up

The city’s housing agency plans to overhaul its apartment lottery system after making a number of tweaks aimed at getting tenants into homes faster, writes The Real Deal’s Kathryn Brenzel.

Five weeks after Mayor Mamdani proposed increasing property taxes by 9.5 percent, the mayor seems to have all but given up on the idea, even as Gov. Kathy Hochul shows no interest in raising income taxes on the rich, reports the New York Times.

Wall Street is betting on Steven Fulop, a veteran of both the Marines and bare-knuckle New Jersey politics, to fight Mamdani’s push to raise taxes on the wealthy and corporations now that he’s the new leader of the Partnership for New York City, The Wall Street Journal reports.

The Mamdani administration is appealing a court decision that orders the city to dramatically expand a rental assistance program, reversing a campaign promise and setting up a clash with the City Council, reports Gothamist.

Thousands of low-income New Yorkers and their landlords are at risk of losing federal rental assistance due to the Trump administration abruptly pulling funds for the Emergency Housing Voucher program, reports The City. Money for the program is set to run out by year’s end.

The Kicker

“I’m obviously going to be painted as the heel. But I just know, based on the data and based on the trend line, that this is not sustainable,” said Kenny Burgos, CEO of the New York Apartment Association, on arguments his team plans to make against a rent freeze at the annual Rent Guidelines Board meetings set to kick off on Thursday.