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This entry was published on 2021-12-31
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SECTION 238-A
Limitation on fees
Real Property (RPP) CHAPTER 50, ARTICLE 7
§ 238-a. Limitation on fees. In relation to a residential dwelling
unit:

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
acceptance 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
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,
housekeeping, transportation and meals to their residents. Nothing in
this paragraph shall prohibit a cooperative housing corporation, other
than a cooperative housing corporation subject to the provisions of
article two, article four, article five or article eleven of the private
housing finance law, from demanding from a prospective tenant any
payment, fee or charge which is necessary to compensate a managing agent
and/or transfer agent for the processing, review or acceptance of such
prospective tenant's application where such prospective tenant would
become a dwelling unit owner or 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, other than a cooperative
housing corporation subject to the provisions of article two, article
four, article five or article eleven of the private housing finance law,
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 dwelling unit owner
or 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; provided a cooperative housing
corporation, other than a cooperative housing corporation subject to the
provisions of article two, article four, article five or article eleven
of the private housing finance law, shall be permitted to charge a
tenant that is a dwelling unit owner or shareholder of such cooperative
housing corporation a fee of up to eight percent of the monthly
maintenance fee for the late payment of the monthly maintenance fee if
the proprietary lease or occupancy agreement provides for such fee.

3. Any provision of a lease or contract waiving or limiting the
provisions of this section shall be void as against public policy.