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A federal judge has preliminarily blocked New York’s attorney general from enforcing the state’s rent-setting algorithm ban against landlords and managers. The September 29, 2026, order applies to one subsection of the law, not the entire statute, and the case is still pending.
What New York’s law was designed to cover
New York added § 340-b to its General Business Law through legislation signed by Governor Kathy Hochul on October 16, 2025. The law was set to take effect on the 60th day after it became law. It addressed residential landlords or managers who knowingly, or with reckless disregard, set or adjusted rents, renewal terms, occupancy levels, or other lease terms based on recommendations from a product performing a defined “coordinating function.”
How the law defined a coordinating function
The definition required three linked activities:
- The product collected historical or current rental prices, supply levels, or lease termination and renewal dates from at least two residential property owners or managers that were not under common ownership or management.
- It computationally analyzed or processed that information.
- It recommended rents, renewal terms, ideal occupancy, or other lease conditions to an owner or manager.
The statute described an “algorithm” as a computational process that uses rules to define a sequence of operations. An “algorithmic device” could be a machine, computer program, or software that performs the coordinating function, either alone or with human assistance.
Which uses the statute exempted
The enacted text exempted products used to establish rent or income limits under specified tenant-protection, rent-stabilization, rent-control, or government affordable-housing programs.
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What the September 29 order blocks
In RealPage, Inc. v. James, U.S. District Judge Valerie E. Caproni granted RealPage’s motion for a preliminary injunction as to § 340-b(3). The order bars New York Attorney General Letitia James and those acting in concert with her from enforcing or causing enforcement of that subsection while the case proceeds.
That is a temporary court order, not a final decision that the law is unconstitutional. It does not say that every part of § 340-b has been struck down. The same order denied the attorney general’s motion to dismiss, so the lawsuit continues.
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Can New York landlords still use rent-setting algorithms?
The order prevents the attorney general from enforcing § 340-b(3) under its terms during the case. It is not a blanket legal clearance for every landlord, software provider, or use of pricing software. The order does not resolve other state or federal legal claims, including antitrust claims, and it does not decide whether RealPage or any landlord violated those laws.
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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →In practical terms, the key distinction is between enforcement of this particular subsection by the officials covered by the order and the broader question of whether a specific practice is lawful under other rules. The injunction answers the first question for now; it does not settle the second.
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Why RealPage challenged the law
The available legal-news summary describes RealPage’s suit as raising a First Amendment challenge and a dispute about how broadly the law regulates software recommendations. It characterized the judge’s preliminary assessment as a “close call,” with RealPage “marginally” likely to prevail at this stage. The summary also reported concern that subsection 3 does not distinguish software recommendations based on public data from those based on nonpublic data. That is a reported account of the preliminary analysis, not a complete statement of the judge’s reasoning or a final ruling on the First Amendment issue.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happens next in the case
The docketed order, signed September 29, 2026, set an initial pretrial conference for October 30, 2026, and required the parties to submit a joint filing by October 22. Those dates are the schedule stated in the docket record reviewed as of October 3, 2026; the order remains preliminary, and the litigation has not reached a final merits judgment.
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- SPIRAL-BOUND EFFICIENCY: A neat spiral keeps your duplicates in numerical order for a permanent record of transactions
- CONSECUTIVELY NUMBERED: Large 6-digit numbers in the upper right hand corner help you thumb through orders quickly
- 200 SETS PER BOOK: Stock up so you never run out; receipt book provides 200 sequentially numbered carbonless sets
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