NY State Senate Bill 2017-S2377

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development 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 03, 2018	referred to housing, construction and community development
Jan 13, 2017	referred to housing, construction and community development

co-Sponsors

2017-S2377 (ACTIVE) - Details

See Assembly Version of this Bill:: A1089
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Add §26-416, amd §26-512, NYC Ad Cd; amd §6, 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
2015-2016: S3591, A1156
2019-2020: S3358, A2623
2021-2022: S2014, A5040

2017-S2377 (ACTIVE) - 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.

2017-S2377 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2377

 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
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

2017-S2377 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2377
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             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 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:
   § 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.
   §  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.
   § 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 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.
   § 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 S2377

Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

2017-S2377 (ACTIVE) - Details

2017-S2377 (ACTIVE) - Summary

2017-S2377 (ACTIVE) - Sponsor Memo

2017-S2377 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2377

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Sponsored By

Marisol Alcantara

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

Brad Hoylman-Sigal

Brian Kavanagh

Luis R. Sepúlveda

2017-S2377 (ACTIVE) - Details

2017-S2377 (ACTIVE) - Summary

2017-S2377 (ACTIVE) - Sponsor Memo

2017-S2377 (ACTIVE) - Bill Text download pdf

Comments