S T A T E   O F   N E W   Y O R K
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                                  2198
                       2011-2012 Regular Sessions
                          I N  A S S E M B L Y
                            January 14, 2011
                               ___________
Introduced by M. of A. WRIGHT -- read once and referred to the Committee
  on Real Property Taxation
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.
  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
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06247-01-1
              
             
                          
                
A. 2198                             2
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.