BILL NUMBER:S6113

TITLE OF BILL:  An act to amend the real property law, in relation to
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 real property law by adding a new section 234-a
that would prohibit a landlord from charging or including any fee,
surcharge, or other assessment for legal services in connection with
any billing or correspondence with a tenant unless the landlord has
the legal authority to do so pursuant to a court order.

Section 2 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
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 rent 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: This is a New Bill

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 fox Safe Apartments and the Community Development


Project, September 2013. http://www.cdp-ny. org/xeoort/The Burden of
Fees FINAL.pdf

                                BILL NUMBER:S6113A

TITLE OF BILL:  An act to amend the real property law, in relation to
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 real property law by adding a new section 234-a
that would prohibit a landlord from charging or including any fee,
surcharge, or other assessment for legal services in connection with
any billing or correspondence with a tenant unless the landlord has
the legal authority to do so pursuant to a court order.

Section 2 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
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 rent 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:

This is a New Bill

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 fox Safe Apartments and the Community Development
Project, September 2013. http://www.cdp-ny. org/xeoort/The Burden of
Fees FINAL.pdf