Legislation

* § 340-b. Agreements to not compete with respect to residential
rental dwelling units. 1. As used in this section, the following terms
shall have the following meanings:

(a) "Algorithm" means a computational process that uses a set of rules
to define a sequence of operations.

(b) "Algorithmic device" means any machine, device, computer program
or computer software that on its own or with human assistance performs a
coordinating function.

(c) "Coordinating function" means performing all of the following
subfunctions, provided, however, that a product used for the purpose of
establishing rent or income limits in accordance with the emergency
tenant protection act of nineteen seventy-four, as amended, the rent
stabilization law of nineteen sixty-nine, as amended, the city rent and
rehabilitation law, the emergency housing rent control law, or an
affordable housing program administered by a federal, state, or local
government or other political subdivision shall not be considered to be
performing a coordinating function:

(i) collecting historical or contemporaneous prices, supply levels, or
lease or rental contract termination and renewal dates of residential
dwelling units from two or more residential rental property owners or
managers, provided that at least two such residential rental property
owners or managers are not wholly-owned subsidiaries of the same parent
entity or otherwise owned or managed by the same residential rental
property owner or manager;

(ii) analyzing or processing the information described in subparagraph
(i) of this paragraph using a system, software, or process that uses
computation, including by using that information to train an algorithm;
and

(iii) recommending rental prices, lease renewal terms, ideal occupancy
levels, or other lease terms and conditions to a residential rental
property owner or manager.

(d) "Residential rental property owner or manager" means any
individual or entity that owns or is a beneficial owner of, directly or
indirectly, in whole or in part, or manages one or more residential
rental dwelling units in New York state.

2. It shall be an unlawful violation of this article for a person or
entity to knowingly or with reckless disregard facilitate an agreement
between or among two or more residential rental property owners or
managers to not compete with respect to residential rental dwelling
units, including by operating or licensing a software, data analytics
service, or algorithmic device that performs a coordinating function on
behalf of or between and among such residential rental property owners
or managers.

3. It shall be considered an unlawful agreement in violation of this
article for a residential rental property owner or manager to knowingly
or with reckless disregard set or adjust rental prices, lease renewal
terms, occupancy levels, or other lease terms and conditions in one or
more of their residential rental properties based on recommendations
from a software, data analytics service, or algorithmic device
performing a coordinating function.

4. Nothing in this section shall impair or limit the applicability of
any other part of this article or any other state law.

* NB Effective December 15, 2025