NY State Senate Bill 2015-S1563

Senate Bill S1563

2015-2016 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

download bill text pdf

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to judiciary
Jan 13, 2015	referred to judiciary

2015-S1563 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §220-a, RP L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5437
2017-2018: S3074
2019-2020: S4220

2015-S1563 (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, and in no event shall such fee exceed $30.

2015-S1563 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1563

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.

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.

PRIOR LEGISLATIVE HISTORY:

2014: S.5437 - Referred to Judiciary
2013: A.3407 - Referred to Housing
2011: A.2198 - Referred to Real Property Taxation

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

This act shall take effect on the 90th day after it shall have become
a law.

2015-S1563 (ACTIVE) - Bill Text download pdf

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

                                  1563

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 13, 2015
                               ___________

Introduced  by  Sen.  PARKER -- 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.
  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.
                                                           LBD04771-01-5

S. 1563                             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.

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