What's happening
This bill prohibits landlords from charging tenants legal fees related to residential rentals unless authorized by a court order.
Why it matters
Provides legal clarity and protection for tenants. , ensuring that landlords cannot pass on legal costs to tenants unless a judge specifically authorizes it, closing a common loophole that could be used to intimidate or financially burden renters.
Invalidates any rental agreements or charges that attempt to circumvent this restriction. , making them unenforceable and formally against public policy—offering tenants a straightforward defense if such fees are demanded.
Applies to nearly all major housing laws and rent regulations in New York. , including rent-controlled, rent-stabilized, and market-rate units, meaning the impact would be broad and affect a wide range of tenants and landlords.
Could shift the balance in landlord-tenant disputes. , discouraging frivolous or aggressive legal action by landlords, since they cannot automatically recover legal costs from tenants without court approval, potentially leading to fewer unnecessary lawsuits or eviction threats.
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Who cares
Headline styles
Ban Landlord Legal Fee Charges
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Landlord Legal Fee Charges
In Assembly Committee · Codes · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2377
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sen. ALCANTARA -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four, the emergency housing rent control law and the real property law, in relation to prohibiting charges for legal fees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The administrative code of the city of New York is amended by adding a new section 26-416 to read as follows:
§ 26-416 Unauthorized legal fees. A lessor or agent thereof shall be prohibited from assessing a lessee any fee, surcharge or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
§ 2. Section 6 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventyfour, is amended by adding a new subdivision f-1 to read as follows:
f-1. A lessor or agent thereof shall be prohibited from assessing a lessee any fee, surcharge or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
§ 3. Section 26-512 of the administrative code of the city of New York is amended by adding a new subdivision g to read as follows:
g. A lessor or agent thereof shall be prohibited from assessing a lessee any fee, surcharge or other charges for legal services in connection with the operation or rental of a residential unit unless the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03571-01-7
S. 2377 2
lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
§ 4. Subdivision 4 of section 4 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, is amended by adding a new paragraph (f) to read as follows:
(f) A lessor or agent thereof shall be prohibited from assessing a lessee any fee, surcharge or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
§ 5. The real property law is amended by adding a new section 234-a to read as follows:
§ 234-a. Unauthorized legal fees. A lessor or agent thereof shall be prohibited from assessing a lessee any fee, surcharge or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
§ 6. This act shall take effect immediately; provided that: (a) section 26-416 of the city rent and rehabilitation law as added by section one of this act shall remain in full force and effect only as long as the public emergency requiring the regulation and control of residential rents and evictions continues, as provided in subdivision 3 of section 1 of the local emergency housing rent control act;
(b) the amendments to section 4 of chapter 576 of the laws of 1974 constituting the emergency tenant protection act of nineteen seventyfour made by section two of this act shall expire on the same date as such act expires and shall not affect the expiration of such act as provided in section 17 of chapter 576 of the laws of 1974;
(c) the amendments to section 26-512 of chapter 4 of title 26 of the administrative code of the city of New York, made by section three of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law; and
(d) the amendments to section 4 of the emergency housing rent control law made by section four of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided in subdivision 2 of section 1 of chapter 274 of the laws of 1946.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four, the emergency housing rent control law and the real property law, in relation to prohibiting charges for legal fees
Purpose or general idea of bill
This bill would prohibit a landlord from including any legal fees not awarded pursuant to a court order on any correspondence to a tenant
Summary of specific provisions
Section 1 amends the administrative code of the city of New York by adding section 26-416 that would prohibit a lessor or agent from assessing a lessee any fee, surcharge, or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
Read the full memo (856 words)
Section 2 amends sections 6 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four by adding a new subdivision f-1 that would prohibit a lessor or agent from assessing a lessee any fee, surcharge, or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
Section 3 amends section 26-512 of the administrative code of the city of New York by adding a new subdivision g that would prohibit a lessor or agent from assessing a lessee any fee, surcharge, or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
Section 4 amends subdivision 4 of section 4 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law that would prohibit a lessor or agent from assessing a lessee any fee, surcharge, or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order Any agreement or assessment to the contrary shall be void as contrary to public policy.
Section 5 amends the real property law by adding a new section 234-a that would prohibit a lessor or agent thereof from charging or including any fee, surcharge, or other charges for legal services in connection with the operation or rental of a residential unit unless the lessor has the legal authority to do so pursuant to a court order. Any agreement or assessment to the contrary shall be void as contrary to public policy.
Section 6 sets the effective date.
Justification
Nearly half of all New Yorkers live below or close to the poverty line. Accordingly, it is critical that New York City has protections in place to safeguard its residents' basic necessities, one of the most important of which is housing. With an average rent of over 51,000 in the City, programs that reduce the rent burden are essential. One important example is New York City's system of rent
control and rent stabilization, which provides a variety of tenant protections to over 2 million people.
Despite the high need for these tenant protections, many landlords are increasing the cost of housing, by imposing non-rent fees on rent stabilized tenants. One major example, and the focus of this bill, is a fee or surcharge for legal services. Landlords do not have legal authority to impose a legal fee unless: a) The tenant's lease has a clause that allows the landlord to seek such fees; b) The tenant is sued by the landlord in a court and; c) Either a judge has ordered a tenant to pay the legal fees or the tenant has agreed to pay the fee in a court approved agreement.
Most of the time, landlords add these surcharges without meeting any of the above conditions. A recent survey of tent stabilized tenants indicates that 56% were charged a legal fee in the last year and on average, the fee exceeded 1,000 dollars: Many tenants feel forced to pay these fees because they fear eviction. This bill is necessary to protect low-income tenants in New York City and ensure that they are not being charged more than they legally owe for rent. This extra cost raises rents and makes rent controlled and rent stabilized apartments unaffordable for many New Yorkers.
Prior legislative history
2013-14: A.8262-A- Referred to Rules/S.6113-B- Referred to Judiciary 2016: Referred to judiciary
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately. (1) The Burden of Fees: How Affordable Housing is Made Unaffordable " Community Action for Safe Apartments and the Community Development Project, September 2013 http://www cdp-ny mg/report/The Burden of Fees FINAL pdf
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