S8306C

The New York State Senate passed its $237 billion budget bill on a 36-24 vote Thursday, enacting historic good-cause eviction protections for unregulated tenants while raising the cap on individual apartment improvements and restoring education funding cuts. The legislation, S8306C, marks the most substantial expansion of tenant rights in 50 years, allowing tenants to challenge evictions and rent increases above 5 percent plus inflation or 10 percent, whichever is lower. The bill also includes $1.3 billion in increased school aid, with $934 million directed to Foundation Aid, and reforms to the Tier 6 pension system by reducing the final average salary calculation from five years to three years. Supporters, including Sen. Salazar and Sen. Kavanagh, argued the provisions address New York's housing crisis and provide necessary protections against unjust evictions. Opponents, led by Sen. Palumbo and Sen. Helming, contended the good-cause eviction law violates property rights and the state constitution, will discourage housing investment, and harm small landlords and upstate communities. The bill also increases the cap on individual apartment improvements from $15,000 to $30,000, with a $50,000 tier for units with long tenancies or those vacant since April 2022. The legislation creates the New York Housing for the Future program to develop affordable homeownership and rental housing statewide, funded at $150 million. Additional provisions include deed theft protections, expanded TAP college aid eligibility to $125,000 income, and clarifications on squatter definitions. The bill takes effect immediately upon the governor's signature.