S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6770
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              October 9, 2019
                                ___________
 
 Introduced  by  Sen.  LIU  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general obligations law, the real property law,  and
   the  real property actions and proceedings law, in relation to exclud-
   ing  tenant-shareholders  in  cooperative  housing  corporations  from
   certain housing provisions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 1-a of section  7-108  of  the
 general  obligations law, as added by section 25 of part M of chapter 36
 of the laws of 2019, is amended to read as follows:
   (a) No deposit or advance shall exceed the amount of one month's  rent
 under  such  contract,  EXCEPT IN DWELLING UNITS WHICH ARE A COOPERATIVE
 HOUSING CORPORATION AND WHERE THE TENANT WOULD BECOME A  SHAREHOLDER  OF
 SUCH DWELLING UNIT.
   § 2. Section 227-f of the real property law is amended by adding a new
 subdivision 3 to read as follows:
   3.  THIS  SECTION SHALL NOT APPLY TO A PROSPECTIVE TENANT OF A COOPER-
 ATIVE HOUSING CORPORATION, WHERE SUCH PROSPECTIVE TENANT WOULD BECOME  A
 SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPORATION.
   §  3.  Subdivisions 1 and 2 of section 238-a of the real property law,
 as added by section 10 of part M of chapter 36 of the laws of 2019,  are
 amended to read as follows:
   1. (a) Except in instances where statutes or regulations provide for a
 payment,  fee  or charge, no landlord, lessor, sub-lessor or grantor may
 demand any payment, fee, or charge for the processing, review or accept-
 ance of an application, or demand  any  other  payment,  fee  or  charge
 before  or at the beginning of the tenancy, except background checks and
 credit checks as provided by paragraph (b) of this subdivision, provided
 that this subdivision shall  not  apply  to  entrance  fees  charged  by
 continuing  care  retirement  communities  licensed  pursuant to article
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13690-04-9

 S. 6770                             2
 
 forty-six or forty-six-A of  the  public  health  law,  assisted  living
 providers  licensed pursuant to article forty-six-B of the public health
 law, adult care facilities licensed pursuant to  article  seven  of  the
 social  services law, senior residential communities that have submitted
 an offering plan to the attorney general, or not-for-profit  independent
 retirement  communities  that  offer personal emergency response, house-
 keeping, transportation and meals to their residents.   NOTHING IN  THIS
 PARAGRAPH  SHALL PROHIBIT A COOPERATIVE HOUSING CORPORATION FROM DEMAND-
 ING FROM A PROSPECTIVE TENANT ANY PAYMENT, FEE OR CHARGE WHICH IS NECES-
 SARY TO COMPENSATE A  MANAGING  AGENT  FOR  THE  PROCESSING,  REVIEW  OR
 ACCEPTANCE  OF SUCH PROSPECTIVE TENANT'S APPLICATION WHERE SUCH PROSPEC-
 TIVE TENANT WOULD BECOME  A  SHAREHOLDER  OF  SUCH  COOPERATIVE  HOUSING
 CORPORATION.
   (b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees
 to  reimburse  costs  associated  with conducting a background check and
 credit check, provided the cumulative fee or fees for such checks is  no
 more  than  the  actual cost of the background check and credit check or
 twenty dollars, whichever is less, and the landlord, lessor,  sub-lessor
 or  grantor shall waive the fee or fees if the potential tenant provides
 a copy of a background check or credit check conducted within  the  past
 thirty days. The landlord, lessor, sub-lessor or grantor may not collect
 the  fee  or  fees  unless  the  landlord, lessor, sub-lessor or grantor
 provides the potential tenant with a copy of  the  background  check  or
 credit  check  and the receipt or invoice from the entity conducting the
 background check or credit check.   NOTWITHSTANDING  THE  PROVISIONS  OF
 THIS  PARAGRAPH, A COOPERATIVE HOUSING CORPORATION SHALL BE PERMITTED TO
 CHARGE A FEE OR FEES TO REIMBURSE COSTS  ASSOCIATED  WITH  CONDUCTING  A
 BACKGROUND CHECK AND CREDIT CHECK IN EXCESS OF TWENTY DOLLARS, WHERE THE
 POTENTIAL  TENANT WOULD BECOME A SHAREHOLDER OF SUCH COOPERATIVE HOUSING
 CORPORATION, PROVIDED THE CUMULATIVE FEE OR FEES FOR SUCH CHECKS  IS  NO
 MORE THAN THE ACTUAL COST OF SUCH BACKGROUND CHECK AND/OR CREDIT CHECK.
   2.  No landlord, lessor, sub-lessor or grantor may demand any payment,
 fee, or charge for the late payment of rent unless the payment  of  rent
 has  not  been  made  within  five days of the date it was due, and such
 payment, fee, or charge shall not exceed fifty dollars or  five  percent
 of  the  monthly  rent,  whichever is less, EXCEPT THAT THIS SUBDIVISION
 SHALL NOT APPLY TO A TENANT OF A COOPERATIVE HOUSING CORPORATION,  WHERE
 SUCH  TENANT  IS  ALSO  A SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPO-
 RATION.
   § 4. Section 702 of the real property actions and proceedings law,  as
 added  by  section  11  of  part M of chapter 36 of the laws of 2019, is
 amended to read as follows:
   § 702. Rent in a residential dwelling. In a proceeding relating  to  a
 residential  dwelling  or  housing  accommodation, the term "rent" shall
 mean the monthly or weekly amount charged in consideration for  the  use
 and occupation of a dwelling pursuant to a written or oral rental agree-
 ment.  No  fees, charges or penalties other than rent may be sought in a
 summary  proceeding  pursuant  to  this  article,  notwithstanding   any
 language  to  the contrary in any lease or rental agreement, EXCEPT THAT
 SUCH ADDITIONAL FEES, CHARGES OR PENALTIES MAY BE SOUGHT  IN  A  SUMMARY
 PROCEEDING BROUGHT BY A COOPERATIVE HOUSING CORPORATION AGAINST A TENANT
 WHO IS A SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPORATION.
   §  5. Section 234 of the real property law, as amended by section 8 of
 part M of chapter 36 of the laws of 2019, is amended to read as follows:
   § 234.  Right  to  recover  attorneys'  fees  in  actions  or  summary
 proceedings  arising  out  of leases of residential property. Whenever a

 S. 6770                             3
 
 lease of residential property shall provide that in any action or summa-
 ry proceeding the landlord may recover attorneys' fees  and/or  expenses
 incurred  as  the  result  of  the  failure of the tenant to perform any
 covenant  or  agreement contained in such lease, or that amounts paid by
 the landlord therefor shall be paid by the tenant  as  additional  rent,
 there  shall  be implied in such lease a covenant by the landlord to pay
 to the tenant the reasonable attorneys' fees and/or expenses incurred by
 the tenant as the result of the failure of the landlord to  perform  any
 covenant  or agreement on its part to be performed under the lease or in
 the successful defense of any action or summary proceeding commenced  by
 the  landlord against the tenant arising out of the lease, and an agree-
 ment that such fees and expenses may be recovered as provided by law  in
 an  action  commenced  against the landlord or by way of counterclaim in
 any action or summary proceeding commenced by the landlord  against  the
 tenant.  A landlord may not recover attorneys' fees upon a default judg-
 ment. Any waiver of this section shall be void as against public policy.
 NOTHING IN THIS SECTION SHALL PROHIBIT A COOPERATIVE HOUSING CORPORATION
 FROM RECOVERING ATTORNEYS' FEES IN AN ACTION AGAINST A TENANT WHERE SUCH
 TENANT IS ALSO A SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPORATION.
   § 6. Subdivision (d) of section 235-e of the  real  property  law,  as
 added  by  section  9  of  part  M of chapter 36 of the laws of 2019, is
 amended to read as follows:
   (d) If a lessor, or an agent of a lessor authorized to  receive  rent,
 fails to receive payment for rent within five days of the date specified
 in  a  lease  agreement,  such lessor or agent shall send the lessee, by
 certified mail, a written notice stating the  failure  to  receive  such
 rent  payment.  The  failure  of  a  lessor,  or any agent of the lessor
 authorized to receive rent, to provide a lessee with a written notice of
 the non-payment of rent may be used as an affirmative  defense  by  such
 lessee  in  an  eviction  proceeding  based  on the non-payment of rent.
 NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, A LESSOR WHICH IS  A
 COOPERATIVE  HOUSING CORPORATION MAY PROVIDE FOR A DEADLINE IN EXCESS OF
 FIVE DAYS AND A METHOD OF SENDING NOTICE OTHER THAN BY  CERTIFIED  MAIL,
 AS LONG AS SUCH DEADLINE AND METHOD OF SENDING NOTICE IS PROVIDED FOR IN
 THE  PROPRIETARY  LEASE, AND THE LESSEE IS A SHAREHOLDER OF SUCH COOPER-
 ATIVE HOUSING CORPORATION.
   § 7. This act shall take effect immediately and shall apply to actions
 and proceedings commenced on or after such effective date.