NY State Senate Bill 2019-S4220A

Senate Bill S4220A

2019-2020 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 08, 2020	referred to judiciary
May 16, 2019	print number 4220a
May 16, 2019	amend and recommit to judiciary
Mar 05, 2019	referred to judiciary

Bill Amendments

Original

A (Active)

2019-S4220 - Details

See Assembly Version of this Bill:: A3325
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §220-a, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A1683
2011-2012: A2198
2013-2014: S5437, A3407
2015-2016: S1563, A3966
2017-2018: S3074, A5786

2019-S4220 - 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.

2019-S4220 - Sponsor Memo

                                
 
BILL NUMBER: S4220

SPONSOR: PARKER
 
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.  Subdivi-
sion 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 "appli-
cation 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 regu-
lation, 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:

2017-18: 5.3074- REFERRED TO JUDICIARY
2015-16:S.1563-Referred to Judiciary
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.

2019-S4220 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4220
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 5, 2019
                                ___________
 
 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:
   § 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.

                                                            LBD07409-02-9

 S. 4220                             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.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

2019-S4220A (ACTIVE) - Details

See Assembly Version of this Bill:: A3325
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §220-a, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A1683
2011-2012: A2198
2013-2014: S5437, A3407
2015-2016: S1563, A3966
2017-2018: S3074, A5786

2019-S4220A (ACTIVE) - Summary

2019-S4220A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4220A

SPONSOR: PARKER
 
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 protect potential tenants from being charged application
fees at an amount 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 any such fee exceed $30.

 
SUMMARY OF PROVISIONS:

Section 1. the real property law is amended by adding a new section
220-a

Section 2. Effective date

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 "appli-
cation 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 vary
in price, but can be obtained easily through a variety of sources for
less than $20.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: S.3074-REFERRED TO JUDICIARY
2015-16: S.1563-Referred to Judiciary
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 ninetieth day after it shall have
become law.

2019-S4220A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4220--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 5, 2019
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Judiciary  --  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:
   § 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.
   2.  IF  A  LANDLORD  OR HIS OR HER AGENT CHARGES A POTENTIAL TENANT AN
 APPLICATION FEE, SUCH APPLICATION FEE MAY NOT EXCEED 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 COMMISSIONER
 OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL.  UPON A FINDING BY THE
 COMMISSIONER THAT  A  LANDLORD  HAS  VIOLATED  THE  PROVISIONS  OF  THIS
 SECTION, THE COMMISSIONER 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.
   § 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.
                                                            LBD07409-03-9

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