BILL NUMBER: S7781

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

An act to amend the real property law, in relation to remedies for a
violation of the prohibition on a landlord from refusing to rent due to
a tenant's involvement in a prior dispute

 
PURPOSE OR GENERAL IDEA OF BILL:

Allows tenants to sue if they are denied a lease based on their involve-
ment in a prior landlord-tenant action or eviction proceeding

 
SUMMARY OF PROVISIONS:

Section 1 adds a new subdivision to section 227-f of the real property
law to authorize tenants that are denied a lease on the basis of
involvement in a prior landlord-tenant action or eviction proceeding to
sue for damages and injunctive relief.

Section 2 establishes the effective date.
              

 
JUSTIFICATION:

In 2019, the Housing Stability and Tenant Protection Act (HSTPA) made it
illegal for a property owner or landlord in New York State to deny a
rental application based on the applicant's past involvement in a Hous-
ing Court case. The Attorney General was charged with enforcing the
provision, and violators now face a penalty of up to $1000. While this
marks a significant policy improvement, the law's low penalty and its
reliance on the Attorney General fail to properly deter rulebreakers,
while denying tenants efficient recourse.

The so-called "tenant blacklist" is profoundly consequential for tenants
all over the United States. Through tenant-screening bureaus, landlords
can gain access to a tenant's Housing Court records. Usually, this is
one of the most consequential factors for, landlords when determining
whether to rent to a prospective tenant (HousingLink, 2024). A past
eviction case can be what some have called a "scarlet E" for tenants
(The Urban Institute, 2023), creating an insurmountable obstacle to
stable shelter.

While eviction records can significantly constrict a tenant's access to
the housing market, they are frequently inaccurate or incomplete.  One
cross-jurisdictional study estimated that 22% of eviction records
contain ambiguous or false information (Porton, Gromis, & Desmond,
2020). For instance, if a tenant receives a 90% rent abatement after
withholding rent, their court record could reflect a money judgement to
the landlord for the remaining 10%. Other research shows that the use of
housing court records by tenant screening bureaus and consumer reporting
agencies facilitates discrimination (Shriver Center on Poverty and Law,
2020) and hinders efforts to address poverty and homelessness (Center
for American Progress, 2021).

While New York has technically banned use of the tenant blacklist,
tenants' can only seek recourse through a complaint to the New York
Attorney General-they cannot bring their own suit, nor can they seek
damages. If landlords break the law, they face a maximum penalty of
$1000--less than one-fourth of the median monthly rent in Manhattan.  By
creating a cause of action for tenants who suffer housing discrimination
as a result of their involvement in a prior landlord-tenant proceeding,
New York can bolster its enforcement capacity, deter wrongdoers, and
conserve public resources.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.