AYESHA RASCOE, HOST:
Finding an affordable place to live in New York City is practically a combat sport. And if you're young or maybe just don't make a lot of money, it can feel impossible, due in part to broker's fees. That's where renters have to pay as much as 15% of a year's worth of rent to the broker before they can move in. But things are about to change.
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CHI OSSE: If you've rented in New York, you probably had to pay a broker's fee, even if you never hired a broker. I'm city council member Chi Osse, representing Bed-Stuy and Crown Heights. And that's why I introduced the FARE Act, to make it so that whoever hires the broker pays the broker. Meet me Wednesday, June 12, 9 a.m., right here at City Hall.
RASCOE: That's Chi Osse, New York City's youngest council member. He took on the issue, and he joins us now. Welcome to the program.
OSSE: Thank you so much for having me on.
RASCOE: So now, these broker's fees are on top of first and last month's rent, plus the security deposit that landlords generally ask for. The FARE Act, which passed last week, could make things easier on renters in the city. When does it take effect?
OSSE: Now it's on the mayor's desk. It's up to him on if he wants to sign the bill, veto the bill or let the bill just become a law after 30 days after it was passed. Once the bill is actually a law in the city, it will take 180 days until it's implemented.
RASCOE: Are you at all worried that this bill could be vetoed?
OSSE: We got 42 votes in support of this bill, and the veto-proof majority in the city council is 34, so we're well above that threshold. Even if the mayor vetoes it, we are able to override that veto, and this bill will become a law, whether he likes it or not.
RASCOE: And so basically, under the law, landlords who hire brokers - the landlords will be responsible for that broker's fee, right?
OSSE: Exactly. Basically, the bill would require that whoever hires a broker, whether they're a landlord or a tenant, will pay the broker fee. We're trying to replicate how every other transaction in this country takes place. If you hire something or order something, you pay for it.
RASCOE: Have you, yourself, ever had to pay one of these broker fees?
OSSE: So currently in the apartment that I am living in today - a year-and-a-half ago, I was looking for a place to live within my own district. And the apartment search for me, as a council member who makes, you know, a six-figure salary, was very difficult. I was showing up to multiple different apartment tours. The broker was never helpful. And I would show up to the lease signing, and the landlord was trying to charge me a broker fee ranging from 15- to 30% of the annual rent to a broker I never hired.
RASCOE: Why are brokers and their fees, like, even necessary in New York City? They're pretty much unheard of in the rest of the country. Is it because there's just so much demand?
OSSE: I do believe it's because demand is high. In addition to that, you know, I do believe that some brokers provide a necessary service. However, I think because of the craziness of the rental market and just the power that real estate has within New York City, a lot of people started becoming brokers as a side hustle. Because of this, you saw that many people were overcharging people. It got out of control, and this bill will regulate that.
RASCOE: We just heard a clip of you on TikTok at the top of this interview. Do you look at TikTok as a great way to get young people involved in local politics?
OSSE: I always say what the oil lobby is to Texas government, the real estate lobby is to New York City. Real estate is very powerful, and they have beaten a bill like this multiple times in the past. I knew when I was pushing this bill that I needed all hands on deck and to build a huge coalition. My social media presence galvanized a lot of young people, especially on TikTok, to call their council members, to show up to city council hearings and to put some public pressure on this bill, which ultimately helped us get it passed.
RASCOE: You're the only Gen Z member of the city council. Are there other issues unique to your age group that you plan on addressing next?
OSSE: It's all affordability for me. I mean, the rent is too damn high here in New York City. I grew up here. It's so unfortunate seeing some of my friends priced out. The housing shortage in New York is outrageous. It's impacting people of all different ages but most especially young people. And I've been a staunch advocate for approving and pushing for new, affordable housing development.
RASCOE: That's New York City council member Chi Osse. Thank you so much for joining us.
OSSE: Thank you for having me on. Transcript provided by NPR, Copyright NPR.
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