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S3358Senate2019-2020 SessionSame asA2623

Ban Landlord Legal Fee Charges

Official title

“Relates to prohibiting legal fees to be charged by a lessor or agent thereof”

Sponsor Robert JacksonSD-31+1 co-sponsorAffects Housing
Status
In Senate Committee
Housing, Construction And Community Development
Impact
7/10
Significant
Passage
0%

Bill progress

Step 2 of 7

In committee · Housing, Construction And Community Development

What's happening

This bill prohibits landlords from charging tenants legal fees or related costs unless authorized by a court order.

Why it matters

  1. Protects tenants from surprise or excessive charges. By requiring a court order for landlords to impose legal fees, tenants are shielded from arbitrary or predatory charges that might otherwise be hidden in lease agreements or imposed after disputes.

  2. Covers a broad range of legal-related costs. The bill’s definition of "legal services" is comprehensive, including court fees, attorney fees, notary charges, and administrative costs—preventing landlords from simply relabeling legal expenses to circumvent the law.

  3. Makes contrary lease terms unenforceable. Any lease agreement or contract provision that tries to pass unauthorized legal fees onto tenants is declared void, reducing the risk of landlords exploiting legal fine print.

  4. Applies to various forms of rent regulation and housing law. The changes are made across several foundational New York housing statutes, ensuring consistent tenant protections regardless of whether a unit is rent-regulated, rent-controlled, or otherwise subject to state housing law.

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Who cares

Headline styles

Ban Landlord Legal Fee Charges

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Robert Jackson

Senator · Senate District 31

Chair, Cities

1 Co-sponsor

History

  1. Referred to housing, construction and community development
  2. Returned to senate
  3. Died in assembly
  4. Referred to housing
  5. Delivered to assembly
  6. Passed senateVote 41–21
  7. Advanced to third reading
  8. 2nd report cal.
  9. 1st report cal.450
  10. Print number 3358a
  11. Amend and recommit to housing, construction and community development
  12. 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.

A2623Assembly

Ban Landlord Legal Fee Charges

In Assembly Committee · Codes · Sponsor Jeffrey Dinowitz

Impact 7 · Significant0% to pass

Full text

3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

3358--A

2019-2020 Regular Sessions

IN SENATE

February 6, 2019

Introduced by Sens. JACKSON, BIAGGI -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

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. An owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal representation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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. An owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD00648-02-9

S. 3358--A 2

to, court fees, legal representation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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. An owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal representation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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) An owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal representation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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. An owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal representation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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

S. 3358--A 3

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

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 provisions

Section 1 amends the administrative code of the City of New York by adding section 26-416 that would prohibit an owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal representation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. Any agreement or assessment to the contrary shall be void as contrary to public policy.

Read the full memo (1,080 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 an owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal representation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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 an owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal representation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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 an owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal represen- tation, attorney fees, notary public charges, and administrative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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 an owner, 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 owner, lessor or agent has the legal authority to do so pursuant to a court order. Legal services include, but are not limited to, court fees, legal representation, attorney fees, notary public charges, and adminis- trative fees incurred by the owner, lessor or agent in connection with management of the building, including actions and proceedings in a court of law. 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 of New York, programs that reduce the rent burden are essential. One impor- tant example is New York City's system of rent control and rent stabili- zation, 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 stabi- lized 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 rent-stabilized tenants indi- cates that 56% were charged a legal fee in the last year and on average, the fee exceeded $1,000. 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 the y 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.

Legislative history

2017-2018: A.1089 - Referred to Codes/S.2377 - Referred to Housing, Construction, and Community Development

2015-2016: A.1156-A - Third Reading Rules Calendar No. 262/S.3591-A - Referred to Judiciary

2013-2014: A.8262-A - Referred to Rules/S.6113-B - Referred to Judiciary

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.