Senate Bill S4259

2009-2010 Legislative Session

Prohibits landlords from charging potential tenants application fees greater than the actual cost of a credit check or other related services paid by the landlord

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 27, 2010	print number 4259c
Apr 27, 2010	amend and recommit to judiciary
Feb 23, 2010	print number 4259b
Feb 23, 2010	amend and recommit to judiciary
Jan 06, 2010	referred to judiciary
Jul 16, 2009	committed to rules
Jul 09, 2009	amended on third reading 4259a
May 11, 2009	advanced to third reading
May 06, 2009	2nd report cal.
May 05, 2009	1st report cal.250
Apr 20, 2009	referred to judiciary

Bill Amendments

Original

C (Active)

2009-S4259 - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §220-a, RP L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S905
2013-2014: S3170
2015-2016: S2852
2017-2018: S3321

2009-S4259 - Summary

Allows landlords to charge potential tenants application fees no greater than the actual cost of a credit check or related services paid to a third party by the landlord.

2009-S4259 - Sponsor Memo

                                 BILL NUMBER:  S4259

 TITLE OF BILL :

An act to amend the real property law, in relation to fees landlords
may charge tenants


 PURPOSE OR GENERAL IDEA OF BILL :

This bill would allow landlords to charge potential tenants
application fees no greater than the actual cost of a credit check or
the related services paid to a third party by the landlord, and in no
event shall such fee exceed $30.

 SUMMARY OF SPECIFIC PROVISIONS :

Subdivision 1 of the bill defines "application fees", "potential
tenants", and "landlords" for the purposes of the new section.
Subdivision 2 would allow a landlord to charge an application fee
equal to the cost of services paid for by the landlord to a third
party, provided that the total of such fee or fees does not exceed
$30.

 EXISTING LAW :

Adds new Section 220-a to Real Property Law.

 JUSTIFICATION :

This legislation would strike a balance between providing necessary
protection for tenants and enabling landlords to recover the actual
costs involved in researching and verifying the credit histories of
potential tenants. The practice of charging prospective tenants
"application fees" is completely unregulated under present law. As a
result, consumers in tight rental markets throughout New York State
have been forced to pay as much as $150 just to be considered for
rental.

To curb the abuses which regularly take place in the absence of
regulation, this bill would cap the application fee at $30. Consumer
credit reports obtained by TRW and other reporting agencies vary in
price, but can be obtained easily through a variety of sources for
less than $20.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become a law.

2009-S4259 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4259

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 20, 2009
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the real property law, in relation to fees landlords may
  charge tenants

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real property law is amended by adding a new section
220-a to read as follows:
  S 220-A. APPLICATION FEES. 1. WHEREVER USED IN THIS SECTION:
  A. "APPLICATION FEE" MEANS ANY APPLICATION PROCESSING  FEE  OR  CREDIT
CHECK CHARGE OR SIMILAR CHARGE THAT A POTENTIAL TENANT MUST PAY OR IS IN
ANY  WAY  REQUESTED  TO  PAY TO A LANDLORD IN ORDER TO BE CONSIDERED FOR
RENTAL OR LEASE OF ANY REAL PROPERTY OR PORTION THEREOF USED  FOR  RESI-
DENTIAL PURPOSES.
  B.  "POTENTIAL  TENANT" MEANS ANY PERSON WITH AN INTENTION TO LEASE OR
RENT ANY REAL PROPERTY OR  PORTION  THEREOF  FOR  RESIDENTIAL  PURPOSES,
EXCLUDING  POTENTIAL  TENANT  SHAREHOLDERS OF COOPERATIVE HOUSING CORPO-
RATIONS.
  C. "LANDLORD" MEANS ANY OWNER, MANAGING AGENT OR PRIME LESSOR OF  REAL
PROPERTY  OR  ANY  REAL ESTATE BROKER, PROVIDED, THAT THIS SECTION SHALL
NOT LIMIT THE FEE THAT CAN BE LAWFULLY CHARGED BY  SUCH  BROKER  IF  THE
POTENTIAL TENANT ENTERS INTO A LEASE OR OCCUPIES REAL PROPERTY FOR RESI-
DENTIAL PURPOSES AS A RESULT OF THE BROKER'S SERVICES.
  2.  A  LANDLORD MAY CHARGE A POTENTIAL TENANT AN APPLICATION FEE EQUAL
TO THE ACTUAL COST OF A CREDIT CHECK OR OTHER RELATED SERVICES PAID  FOR
BY  A  LANDLORD  TO  A THIRD PARTY, PROVIDED, HOWEVER, THAT THE TOTAL OF
SUCH FEE OR FEES SHALL NOT EXCEED THIRTY DOLLARS.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00153-01-9

2009-S4259A - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §220-a, RP L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S905
2013-2014: S3170
2015-2016: S2852
2017-2018: S3321

2009-S4259A - Summary

Allows landlords to charge potential tenants application fees no greater than the actual cost of a credit check or related services paid to a third party by the landlord.

2009-S4259A - Sponsor Memo

2009-S4259A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4259--A
    Cal. No. 250

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 20, 2009
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Judiciary  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its place in the order of third reading

AN ACT to amend the real property law, in relation to fees landlords may
  charge tenants

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property law is amended by adding  a  new  section
220-a to read as follows:
  S 220-A. APPLICATION FEES. 1. WHEREVER USED IN THIS SECTION:
  A.  "APPLICATION  FEE"  MEANS ANY APPLICATION PROCESSING FEE OR CREDIT
CHECK CHARGE OR SIMILAR CHARGE THAT A POTENTIAL TENANT MUST PAY OR IS IN
ANY WAY REQUESTED TO PAY TO A LANDLORD IN ORDER  TO  BE  CONSIDERED  FOR
RENTAL  OR  LEASE OF ANY REAL PROPERTY OR PORTION THEREOF USED FOR RESI-
DENTIAL PURPOSES.
  B. "POTENTIAL TENANT" MEANS ANY PERSON WITH AN INTENTION TO  LEASE  OR
RENT  ANY  REAL  PROPERTY  OR  PORTION THEREOF FOR RESIDENTIAL PURPOSES,
EXCLUDING POTENTIAL TENANT SHAREHOLDERS OF  COOPERATIVE  HOUSING  CORPO-
RATIONS.
  C.  "LANDLORD" MEANS ANY OWNER, MANAGING AGENT OR PRIME LESSOR OF REAL
PROPERTY OR ANY REAL ESTATE BROKER, PROVIDED, THAT  THIS  SECTION  SHALL
NOT  LIMIT  THE  FEE  THAT CAN BE LAWFULLY CHARGED BY SUCH BROKER IF THE
POTENTIAL TENANT ENTERS INTO A LEASE OR OCCUPIES REAL PROPERTY FOR RESI-
DENTIAL PURPOSES AS A RESULT OF THE BROKER'S SERVICES.
  2. A LANDLORD MAY CHARGE A POTENTIAL TENANT AN APPLICATION  FEE  EQUAL
TO  THE ACTUAL COST OF A CREDIT CHECK OR OTHER RELATED SERVICES PAID FOR
BY A LANDLORD TO A THIRD PARTY, PROVIDED, HOWEVER,  THAT  THE  TOTAL  OF
SUCH FEE OR FEES SHALL NOT EXCEED THIRTY DOLLARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00153-02-9

S. 4259--A                          2

  3.  WHERE  A  LANDLORD  CHARGES  APPLICATION FEES IN VIOLATION OF THIS
SECTION, A POTENTIAL TENANT MAY  FILE  A  COMPLAINT  WITH  THE  CONSUMER
PROTECTION  BOARD.  UPON  A  FINDING  BY  THE  BOARD THAT A LANDLORD HAS
VIOLATED THE PROVISIONS OF THIS SECTION, THE BOARD SHALL IMPOSE  A  FINE
OF ONE HUNDRED DOLLARS FOR A FIRST OR SECOND VIOLATION AND A FINE OF TWO
HUNDRED FIFTY DOLLARS FOR A THIRD OR ANY SUBSEQUENT VIOLATION.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

2009-S4259B - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §220-a, RP L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S905
2013-2014: S3170
2015-2016: S2852
2017-2018: S3321

2009-S4259B - Summary

Allows landlords to charge potential tenants application fees no greater than the actual cost of a credit check or related services paid to a third party by the landlord.

2009-S4259B - Sponsor Memo

2009-S4259B - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4259--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 20, 2009
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Judiciary  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its  place in the order of third reading -- recommitted to the Commit-
  tee on Judiciary in accordance with Senate Rule 6, sec. 8 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the real property law, in relation to fees landlords may
  charge tenants

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real property law is amended by adding a new section
220-a to read as follows:
  S 220-A. APPLICATION FEES. 1. WHEREVER USED IN THIS SECTION:
  A. "APPLICATION FEE" MEANS ANY APPLICATION PROCESSING  FEE  OR  CREDIT
CHECK CHARGE OR SIMILAR CHARGE THAT A POTENTIAL TENANT MUST PAY OR IS IN
ANY  WAY  REQUESTED  TO  PAY TO A LANDLORD IN ORDER TO BE CONSIDERED FOR
RENTAL OR LEASE OF ANY REAL PROPERTY OR PORTION THEREOF USED  FOR  RESI-
DENTIAL PURPOSES.
  B.  "POTENTIAL  TENANT" MEANS ANY PERSON WITH AN INTENTION TO LEASE OR
RENT ANY REAL PROPERTY OR  PORTION  THEREOF  FOR  RESIDENTIAL  PURPOSES,
EXCLUDING  POTENTIAL  TENANT  SHAREHOLDERS OF COOPERATIVE HOUSING CORPO-
RATIONS.
  C. "LANDLORD" MEANS ANY OWNER, MANAGING AGENT OR PRIME LESSOR OF  REAL
PROPERTY  OR  ANY  REAL ESTATE BROKER, PROVIDED, THAT THIS SECTION SHALL
NOT LIMIT THE FEE THAT CAN BE LAWFULLY CHARGED BY  SUCH  BROKER  IF  THE
POTENTIAL TENANT ENTERS INTO A LEASE OR OCCUPIES REAL PROPERTY FOR RESI-
DENTIAL PURPOSES AS A RESULT OF THE BROKER'S SERVICES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00153-05-0

S. 4259--B                          2

  2.  A  LANDLORD MAY CHARGE A POTENTIAL TENANT AN APPLICATION FEE EQUAL
TO THE ACTUAL COST OF A CREDIT CHECK OR OTHER RELATED SERVICES PAID  FOR
BY A LANDLORD TO A THIRD PARTY.
  3.  WHERE  A  LANDLORD  CHARGES  APPLICATION FEES IN VIOLATION OF THIS
SECTION, A POTENTIAL TENANT MAY  FILE  A  COMPLAINT  WITH  THE  CONSUMER
PROTECTION  BOARD.  UPON  A  FINDING  BY  THE  BOARD THAT A LANDLORD HAS
VIOLATED THE PROVISIONS OF THIS SECTION, THE BOARD SHALL IMPOSE  A  FINE
OF ONE HUNDRED DOLLARS FOR A FIRST OR SECOND VIOLATION AND A FINE OF TWO
HUNDRED FIFTY DOLLARS FOR A THIRD OR ANY SUBSEQUENT VIOLATION.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

2009-S4259C (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §220-a, RP L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S905
2013-2014: S3170
2015-2016: S2852
2017-2018: S3321

2009-S4259C (ACTIVE) - Summary

Allows landlords to charge potential tenants application fees no greater than the actual cost of a credit check or related services paid to a third party by the landlord.

2009-S4259C (ACTIVE) - Sponsor Memo

2009-S4259C (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4259--C

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 20, 2009
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Judiciary  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its  place in the order of third reading -- recommitted to the Commit-
  tee on Judiciary in accordance with Senate Rule 6, sec. 8 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the real property law, in relation to fees landlords may
  charge tenants

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property law is amended by adding  a  new  section
220-a to read as follows:
  S 220-A. APPLICATION FEES. 1. WHEREVER USED IN THIS SECTION:
  A.  "APPLICATION  FEE"  MEANS ANY APPLICATION PROCESSING FEE OR CREDIT
CHECK CHARGE OR SIMILAR CHARGE THAT A POTENTIAL TENANT MUST PAY OR IS IN
ANY WAY REQUESTED TO PAY TO A LANDLORD IN ORDER  TO  BE  CONSIDERED  FOR
RENTAL  OR  LEASE OF ANY REAL PROPERTY OR PORTION THEREOF USED FOR RESI-
DENTIAL PURPOSES.
  B. "POTENTIAL TENANT" MEANS ANY PERSON WITH AN INTENTION TO  LEASE  OR
RENT  ANY  REAL  PROPERTY  OR  PORTION THEREOF FOR RESIDENTIAL PURPOSES,
EXCLUDING POTENTIAL TENANT SHAREHOLDERS OF  COOPERATIVE  HOUSING  CORPO-
RATIONS.
  C.  "LANDLORD" MEANS ANY OWNER, MANAGING AGENT OR PRIME LESSOR OF REAL
PROPERTY OR ANY REAL ESTATE BROKER, PROVIDED, THAT  THIS  SECTION  SHALL
NOT  LIMIT  THE  FEE  THAT CAN BE LAWFULLY CHARGED BY SUCH BROKER IF THE
POTENTIAL TENANT ENTERS INTO A LEASE OR OCCUPIES REAL PROPERTY FOR RESI-
DENTIAL PURPOSES AS A RESULT OF THE BROKER'S SERVICES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00153-06-0

S. 4259--C                          2

  2. A LANDLORD MAY CHARGE A POTENTIAL TENANT AN APPLICATION  FEE  EQUAL
TO  THE ACTUAL COST OF A CREDIT CHECK OR OTHER RELATED SERVICES PAID FOR
BY A LANDLORD TO A THIRD PARTY.
  3.  WHERE  A  LANDLORD  CHARGES  APPLICATION FEES IN VIOLATION OF THIS
SECTION, A POTENTIAL TENANT MAY FILE A COMPLAINT WITH  THE  DIVISION  OF
HOUSING  AND  COMMUNITY  RENEWAL.  UPON A FINDING BY THE DIVISION THAT A
LANDLORD HAS VIOLATED THE PROVISIONS OF THIS SECTION, THE DIVISION SHALL
IMPOSE A FINE OF ONE HUNDRED DOLLARS FOR A FIRST OR SECOND VIOLATION AND
A FINE OF TWO HUNDRED FIFTY  DOLLARS  FOR  A  THIRD  OR  ANY  SUBSEQUENT
VIOLATION.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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Senate Bill S4259

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

Bill Amendments

2009-S4259 - Details

2009-S4259 - Summary

2009-S4259 - Sponsor Memo

2009-S4259 - Bill Text download pdf

2009-S4259A - Details

2009-S4259A - Summary

2009-S4259A - Sponsor Memo

2009-S4259A - Bill Text download pdf

2009-S4259B - Details

2009-S4259B - Summary

2009-S4259B - Sponsor Memo

2009-S4259B - Bill Text download pdf

2009-S4259C (ACTIVE) - Details

2009-S4259C (ACTIVE) - Summary

2009-S4259C (ACTIVE) - Sponsor Memo

2009-S4259C (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

Bill Amendments

2009-S4259 - Details

2009-S4259 - Summary

2009-S4259 - Sponsor Memo

2009-S4259 - Bill Text download pdf

2009-S4259A - Details

2009-S4259A - Summary

2009-S4259A - Sponsor Memo

2009-S4259A - Bill Text download pdf

2009-S4259B - Details

2009-S4259B - Summary

2009-S4259B - Sponsor Memo

2009-S4259B - Bill Text download pdf

2009-S4259C (ACTIVE) - Details

2009-S4259C (ACTIVE) - Summary

2009-S4259C (ACTIVE) - Sponsor Memo

2009-S4259C (ACTIVE) - Bill Text download pdf

Comments