S T A T E O F N E W Y O R K
________________________________________________________________________
5105--C
2021-2022 Regular Sessions
I N S E N A T E
February 23, 2021
___________
Introduced by Sens. LIU, BIAGGI, COMRIE, KAPLAN, KRUEGER, MAYER,
PERSAUD, REICHLIN-MELNICK, SEPULVEDA, SKOUFIS, STAVISKY -- 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 -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the general obligations law, the real property law, and
the real property actions and proceedings law, in relation to exclud-
ing tenant-shareholders in cooperative housing corporations from
certain housing provisions
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 1-a of section 7-108 of the
general obligations law, as added by section 25 of part M of chapter 36
of the laws of 2019, is amended and a new subdivision 4 is added to read
as follows:
(a) No deposit or advance shall exceed the amount of one month's rent
under such contract, UNLESS THE DEPOSIT OR ADVANCE IS FOR AN OWNER-OCCU-
PIED COOPERATIVE APARTMENT AS PROVIDED FOR IN SUBDIVISION FOUR OF THIS
SECTION.
4. A DWELLING UNIT SHALL QUALIFY AS AN OWNER-OCCUPIED COOPERATIVE
APARTMENT FOR THE PURPOSE OF PARAGRAPH (A) OF SUBDIVISION ONE-A OF THIS
SECTION IF IT MEETS ALL OF THE FOLLOWING CONDITIONS:
(A) THE TENANT IS THE DWELLING UNIT OWNER, PURCHASER OR SHAREHOLDER OF
SUCH A COOPERATIVE HOUSING CORPORATION;
(B) SUCH TENANT HAS OR WILL HAVE AFTER PURCHASE EXCLUSIVE OCCUPANCY OF
SUCH DWELLING UNIT INDIVIDUALLY AND WITH THE PERMITTED OCCUPANTS PURSU-
ANT TO A PROPRIETARY LEASE OR OCCUPANCY AGREEMENT AND ESTABLISHED AND
DELIMITED RIGHTS UNDER SUCH LEASE OR AGREEMENT; AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03421-14-1
S. 5105--C 2
(C) SUCH DWELLING UNIT IS NOT SUBJECT TO THE PROVISIONS OF ARTICLE
TWO, ARTICLE FOUR, ARTICLE FIVE, OR ARTICLE ELEVEN OF THE PRIVATE HOUS-
ING FINANCE LAW.
§ 2. Subdivision 1 of section 226-c of the real property law, as added
by section 3 of part M of chapter 36 of the laws of 2019, is amended to
read as follows:
1. (A) Whenever a landlord intends to offer to renew the tenancy of an
occupant in a residential dwelling unit with a rent increase equal to or
greater than five percent above the current rent, or the landlord does
not intend to renew the tenancy, the landlord shall provide written
notice as required in subdivision two of this section. If the landlord
fails to provide timely notice, the occupant's lawful tenancy shall
continue under the existing terms of the tenancy from the date on which
the landlord gave actual written notice until the notice period has
expired, notwithstanding any provision of a lease or other tenancy
agreement to the contrary.
(B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, NOTICE SHALL
NOT BE REQUIRED UNDER THIS SECTION TO BE PROVIDED BY A COOPERATIVE HOUS-
ING CORPORATION, OTHER THAN A COOPERATIVE HOUSING CORPORATION SUBJECT TO
THE PROVISIONS OF ARTICLE TWO, ARTICLE FOUR, ARTICLE FIVE OR ARTICLE
ELEVEN OF THE PRIVATE HOUSING FINANCE LAW, TO A TENANT WHO IS A DWELLING
UNIT OWNER OR SHAREHOLDER OF SUCH CORPORATION. NOTHING IN THIS PARAGRAPH
SHALL RELIEVE SUCH COOPERATIVE HOUSING CORPORATION OF ANY OTHERWISE
APPLICABLE OBLIGATION TO PROVIDE NOTICE TO SUCH TENANT PURSUANT TO ANY
OTHER LAW OR ANY AGREEMENT BETWEEN THE PARTIES.
§ 3. Subdivisions 1 and 2 of section 238-a of the real property law,
as added by section 10 of part M of chapter 36 of the laws of 2019, are
amended to read as follows:
1. (a) Except in instances where statutes or regulations provide for a
payment, fee or charge, no landlord, lessor, sub-lessor or grantor may
demand any payment, fee, or charge for the processing, review or accept-
ance of an application, or demand any other payment, fee or charge
before or at the beginning of the tenancy, except background checks and
credit checks as provided by paragraph (b) of this subdivision, provided
that this subdivision shall not apply to entrance fees charged by
continuing care retirement communities licensed pursuant to article
forty-six or forty-six-A of the public health law, assisted living
providers licensed pursuant to article forty-six-B of the public health
law, adult care facilities licensed pursuant to article seven of the
social services law, senior residential communities that have submitted
an offering plan to the attorney general, or not-for-profit independent
retirement communities that offer personal emergency response, house-
keeping, transportation and meals to their residents. NOTHING IN THIS
PARAGRAPH SHALL PROHIBIT A COOPERATIVE HOUSING CORPORATION, OTHER THAN A
COOPERATIVE HOUSING CORPORATION SUBJECT TO THE PROVISIONS OF ARTICLE
TWO, ARTICLE FOUR, ARTICLE FIVE OR ARTICLE ELEVEN OF THE PRIVATE HOUSING
FINANCE LAW, FROM DEMANDING FROM A PROSPECTIVE TENANT ANY PAYMENT, FEE
OR CHARGE WHICH IS NECESSARY TO COMPENSATE A MANAGING AGENT AND/OR
TRANSFER AGENT FOR THE PROCESSING, REVIEW OR ACCEPTANCE OF SUCH PROSPEC-
TIVE TENANT'S APPLICATION WHERE SUCH PROSPECTIVE TENANT WOULD BECOME A
DWELLING UNIT OWNER OR SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPO-
RATION.
(b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees
to reimburse costs associated with conducting a background check and
credit check, provided the cumulative fee or fees for such checks is no
more than the actual cost of the background check and credit check or
S. 5105--C 3
twenty dollars, whichever is less, and the landlord, lessor, sub-lessor
or grantor shall waive the fee or fees if the potential tenant provides
a copy of a background check or credit check conducted within the past
thirty days. The landlord, lessor, sub-lessor or grantor may not collect
the fee or fees unless the landlord, lessor, sub-lessor or grantor
provides the potential tenant with a copy of the background check or
credit check and the receipt or invoice from the entity conducting the
background check or credit check. NOTWITHSTANDING THE PROVISIONS OF
THIS PARAGRAPH, A COOPERATIVE HOUSING CORPORATION, OTHER THAN A COOPER-
ATIVE HOUSING CORPORATION SUBJECT TO THE PROVISIONS OF ARTICLE TWO,
ARTICLE FOUR, ARTICLE FIVE OR ARTICLE ELEVEN OF THE PRIVATE HOUSING
FINANCE LAW, SHALL BE PERMITTED TO CHARGE A FEE OR FEES TO REIMBURSE
COSTS ASSOCIATED WITH CONDUCTING A BACKGROUND CHECK AND CREDIT CHECK IN
EXCESS OF TWENTY DOLLARS, WHERE THE POTENTIAL TENANT WOULD BECOME A
DWELLING UNIT OWNER OR SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPO-
RATION, PROVIDED THE CUMULATIVE FEE OR FEES FOR SUCH CHECKS IS NO MORE
THAN THE ACTUAL COST OF SUCH BACKGROUND CHECK AND/OR CREDIT CHECK.
2. No landlord, lessor, sub-lessor or grantor may demand any payment,
fee, or charge for the late payment of rent unless the payment of rent
has not been made within five days of the date it was due, and such
payment, fee, or charge shall not exceed fifty dollars or five percent
of the monthly rent, whichever is less; PROVIDED A COOPERATIVE HOUSING
CORPORATION, OTHER THAN A COOPERATIVE HOUSING CORPORATION SUBJECT TO THE
PROVISIONS OF ARTICLE TWO, ARTICLE FOUR, ARTICLE FIVE OR ARTICLE ELEVEN
OF THE PRIVATE HOUSING FINANCE LAW, SHALL BE PERMITTED TO CHARGE A
TENANT THAT IS A DWELLING UNIT OWNER OR SHAREHOLDER OF SUCH COOPERATIVE
HOUSING CORPORATION A FEE OF UP TO EIGHT PERCENT OF THE MONTHLY MAINTE-
NANCE FEE FOR THE LATE PAYMENT OF THE MONTHLY MAINTENANCE FEE IF THE
PROPRIETARY LEASE OR OCCUPANCY AGREEMENT PROVIDES FOR SUCH FEE.
§ 4. Section 702 of the real property actions and proceedings law, as
added by section 11 of part M of chapter 36 of the laws of 2019, is
amended to read as follows:
§ 702. Rent in a residential dwelling. 1. In a proceeding relating to
a residential dwelling or housing accommodation, the term "rent" shall
mean the monthly or weekly amount charged in consideration for the use
and occupation of a dwelling pursuant to a written or oral rental agree-
ment. No fees, charges or penalties other than rent may be sought in a
summary proceeding pursuant to this article, notwithstanding any
language to the contrary in any lease or rental agreement.
2. THIS SECTION SHALL NOT APPLY TO A SUMMARY PROCEEDING IN WHICH THE
PARTIES ARE A COOPERATIVE HOUSING CORPORATION, OTHER THAN A COOPERATIVE
HOUSING CORPORATION SUBJECT TO THE PROVISIONS OF ARTICLE TWO, ARTICLE
FOUR, ARTICLE FIVE OR ARTICLE ELEVEN OF THE PRIVATE HOUSING FINANCE LAW,
AND A TENANT WHO IS A DWELLING UNIT OWNER OR SHAREHOLDER OF SUCH CORPO-
RATION, PROVIDED THAT THE PROPRIETARY LEASE OR OCCUPANCY AGREEMENT
BETWEEN THE COOPERATIVE HOUSING CORPORATION AND THE TENANT PROVIDES FOR
FEES, CHARGES, PENALTIES OR ASSESSMENTS OTHER THAN RENT TO BE RECOVERA-
BLE IN SUCH A PROCEEDING.
§ 5. Subdivision (d) of section 235-e of the real property law, as
added by section 9 of part M of chapter 36 of the laws of 2019, is
amended to read as follows:
(d) If a lessor, or an agent of a lessor authorized to receive rent,
fails to receive payment for rent within five days of the date specified
in a lease agreement, such lessor or agent shall send the lessee, by
certified mail, a written notice stating the failure to receive such
rent payment. The failure of a lessor, or any agent of the lessor
S. 5105--C 4
authorized to receive rent, to provide a lessee with a written notice of
the non-payment of rent may be used as an affirmative defense by such
lessee in an eviction proceeding based on the non-payment of rent.
NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, A LESSOR WHICH IS A
COOPERATIVE HOUSING CORPORATION, OTHER THAN A COOPERATIVE HOUSING CORPO-
RATION SUBJECT TO THE PROVISIONS OF ARTICLE TWO, ARTICLE FOUR, ARTICLE
FIVE OR ARTICLE ELEVEN OF THE PRIVATE HOUSING FINANCE LAW, MAY PROVIDE
FOR A METHOD OF SENDING NOTICE BY MAIL OTHER THAN BY CERTIFIED MAIL, AS
LONG AS SUCH METHOD OF SENDING NOTICE IS PROVIDED FOR IN THE PROPRIETARY
LEASE OR OCCUPANCY AGREEMENT, AND THE LESSEE IS A DWELLING UNIT OWNER OR
SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPORATION.
§ 6. The opening paragraph of section 234 of the real property law is
designated subdivision 1 and a new subdivision 2 is added to read as
follows:
2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
WHERE A TENANT IS A DWELLING UNIT OWNER OR SHAREHOLDER OF A COOPERATIVE
HOUSING CORPORATION, OTHER THAN A COOPERATIVE HOUSING CORPORATION
SUBJECT TO THE PROVISIONS OF ARTICLE TWO, ARTICLE FOUR, ARTICLE FIVE OR
ARTICLE ELEVEN OF THE PRIVATE HOUSING FINANCE LAW, ATTORNEY'S FEES MAY
BE AWARDED TO EITHER PARTY IN THE EVENT OF DEFAULT JUDGMENT IF RECOVERY
OF ATTORNEY'S FEES IS PROVIDED FOR IN THE PROPRIETARY LEASE OR OCCUPANCY
AGREEMENT.
§ 7. This act shall take effect immediately and shall apply to actions
and proceedings commenced on or after such effective date.
