What's happening
This bill limits residential landlord application fees to $30 and establishes fines for violations.
Why it matters
Restricts landlords to charging only for actual costs incurred for credit checks or related services. (up to the $30 cap), preventing them from profiting off application fees and ensuring tenants are not overcharged for these administrative processes.
Establishes a clear complaint process for renters. , allowing potential tenants to report violations to the Division of Housing and Community Renewal, which increases tenant empowerment and oversight of landlord practices.
Imposes escalating penalties for repeat offenders. ($100 for first or second violations, $250 for subsequent ones), providing a deterrent against landlords who might otherwise ignore the fee cap and helping to enforce compliance.
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Who cares
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Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Print number 4220a
- Amend and recommit to judiciary
- Referred to judiciary
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.
Cap Rental Application Fees
In Assembly Committee · Codes · Sponsor Steven Cymbrowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4220--A
2019-2020 Regular Sessions
IN SENATE
March 5, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property law, in relation to fees landlords may charge tenants
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property law is amended by adding a new section 220-a to read as follows:
§ 220-a. Application fees. 1. Wherever used in this section:
a. "application fee" means any application processing fee or credit check charge or similar charge that a potential tenant must pay or is in any way requested to pay to a landlord in order to be considered for rental or lease of any real property or portion thereof used for residential purposes.
b. "potential tenant" means any person with an intention to lease or rent any real property or portion thereof for residential purposes, excluding potential tenant shareholders of cooperative housing corporations.
2. If a landlord or his or her agent charges a potential tenant an application fee, such application fee may not exceed the actual cost of a credit check or other related services paid for by a landlord to a third party, provided, however, that the total of such fee or fees shall not exceed thirty dollars.
3. Where a landlord charges application fees in violation of this section, a potential tenant may file a complaint with the commissioner of the division of housing and community renewal. Upon a finding by the commissioner that a landlord has violated the provisions of this section, the commissioner shall impose a fine of one hundred dollars for a first or second violation and a fine of two hundred fifty dollars for a third or any subsequent violation.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07409-03-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property law, in relation to fees landlords may charge tenants
Purpose or general idea of bill
This bill would protect potential tenants from being charged application fees at an amount greater than the actual cost of a credit check or the related services paid to a third party by the landlord, and in no event shall any such fee exceed $30.
Summary of provisions
Section 1. the real property law is amended by adding a new section 220-a
Section 2. Effective date
Justification
This legislation would strike a balance between providing necessary protection for tenants and enabling landlords to recover the actual costs involved in researching and verifying the credit histories of potential tenants. The practice of charging prospective tenants "appli- cation fees" is completely unregulated under present law. As a result, consumers in tight rental markets throughout New York State have been forced to pay as much as $150 just to be considered for rental. To curb the abuses which regularly take place in the absence of regulation, this bill would cap the application fee at $30. Consumer credit reports vary in price, but can be obtained easily through a variety of sources for less than $20.
Prior legislative history
2017-18: S.3074-REFERRED TO JUDICIARY 2015-16: S.1563-Referred to Judiciary 2014: S.5437-Referred to Judiciary 2013: A.3407-Referred to Housing 2011: A.2198-Referred to Real Property Taxation
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect on the ninetieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.