NY State Senate Bill 2015-S3591A

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to judiciary
May 07, 2015	print number 3591a
May 07, 2015	amend (t) and recommit to judiciary
Feb 12, 2015	referred to judiciary

Bill Amendments

Original

A (Active)

co-Sponsors

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2015-S3591 - Details

See Assembly Version of this Bill:: A1156
Current Committee:: Senate Judiciary
Law Section:: New York City Administrative Code
Laws Affected:: Add §26-416, amd §26-512, NYC Ad Cd; amd §4, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L; add 234-a, RP L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6113, A8262
2017-2018: S2377, A1089
2019-2020: S3358, A2623
2021-2022: S2014, A5040

2015-S3591 - Summary

Prohibits lessors or agents thereof from assessing a lessee any fee for legal services in connection with any operation or rental of a residential unit unless the lessor has the legal authority to do so.

2015-S3591 - Sponsor Memo

                                BILL NUMBER:S3591

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 lessor or agent thereof from charging or
including any fee, surcharge, or other assessment 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 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

2015-S3591 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3591

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 12, 2015
                               ___________

Introduced  by Sens. ESPAILLAT, DIAZ, HASSELL-THOMPSON, HOYLMAN, PARKER,
  PERKINS, SERRANO -- read twice and ordered printed, and  when  printed
  to be committed to the Committee on Judiciary

AN ACT to amend the real property law, in relation to legal fees

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property law is amended by adding  a  new  section
234-a to read as follows:
  S  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 RESI-
DENTIAL 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.
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01832-01-5

co-Sponsors

View additional co-sponsors

2015-S3591A (ACTIVE) - Details

See Assembly Version of this Bill:: A1156
Current Committee:: Senate Judiciary
Law Section:: New York City Administrative Code
Laws Affected:: Add §26-416, amd §26-512, NYC Ad Cd; amd §4, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L; add 234-a, RP L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6113, A8262
2017-2018: S2377, A1089
2019-2020: S3358, A2623
2021-2022: S2014, A5040

2015-S3591A (ACTIVE) - Summary

2015-S3591A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3591A

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.

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

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

2015-S3591A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3591--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 12, 2015
                               ___________

Introduced  by Sens. ESPAILLAT, DIAZ, HASSELL-THOMPSON, HOYLMAN, PARKER,
  PERKINS, SERRANO -- 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 administrative code of the city  of  New  York,  the
  emergency tenant protection act of nineteen seventy-four, the emergen-
  cy  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  ASSEM-
BLY, 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:
  S 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 RESI-
DENTIAL 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.
  S  2.  Section  6  of  section  4  of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act  of  nineteen  seventy-
four, 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.
  S 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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01832-03-5

S. 3591--A                          2

  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
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.
  S 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.
  S 5. The real property law is amended by adding a new section 234-a to
read as follows:
  S 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 RESI-
DENTIAL 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.
  S  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 seventy-
four 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.

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Senate Bill S3591A

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Bill Amendments

co-Sponsors

2015-S3591 - Details

2015-S3591 - Summary

2015-S3591 - Sponsor Memo

2015-S3591 - Bill Text download pdf

co-Sponsors

2015-S3591A (ACTIVE) - Details

2015-S3591A (ACTIVE) - Summary

2015-S3591A (ACTIVE) - Sponsor Memo

2015-S3591A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3591A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Bill Amendments

co-Sponsors

2015-S3591 - Details

2015-S3591 - Summary

2015-S3591 - Sponsor Memo

2015-S3591 - Bill Text download pdf

co-Sponsors

2015-S3591A (ACTIVE) - Details

2015-S3591A (ACTIVE) - Summary

2015-S3591A (ACTIVE) - Sponsor Memo

2015-S3591A (ACTIVE) - Bill Text download pdf

Comments