S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5105
 
                        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, SEPULVEDA, STAVISKY -- read twice and  ordered  printed,  and
   when printed to be committed to the Committee on Judiciary
 
 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 to read as follows:
   (a)  No deposit or advance shall exceed the amount of one month's rent
 under such contract, EXCEPT IN DWELLING UNITS WHICH  ARE  A  COOPERATIVE
 HOUSING  CORPORATION  AND WHERE THE TENANT WOULD BECOME A SHAREHOLDER OF
 SUCH DWELLING UNIT.
   § 2. Section 227-f of the real property law is amended by adding a new
 subdivision 3 to read as follows:
   3. THIS SECTION SHALL NOT APPLY TO A PROSPECTIVE TENANT OF  A  COOPER-
 ATIVE  HOUSING CORPORATION, WHERE SUCH PROSPECTIVE TENANT WOULD BECOME A
 SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPORATION.
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03421-01-1

 S. 5105                             2
 
 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 FROM  DEMAND-
 ING FROM A PROSPECTIVE TENANT ANY PAYMENT, FEE OR CHARGE WHICH IS NECES-
 SARY  TO  COMPENSATE  A  MANAGING  AGENT  FOR  THE PROCESSING, REVIEW OR
 ACCEPTANCE OF SUCH PROSPECTIVE TENANT'S APPLICATION WHERE SUCH  PROSPEC-
 TIVE  TENANT  WOULD  BECOME  A  SHAREHOLDER  OF SUCH COOPERATIVE HOUSING
 CORPORATION.
   (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
 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 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 SHAREHOLDER OF SUCH COOPERATIVE  HOUSING
 CORPORATION,  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,  EXCEPT  THAT  THIS  SUBDIVISION
 SHALL  NOT APPLY TO A TENANT OF A COOPERATIVE HOUSING CORPORATION, WHERE
 SUCH TENANT IS ALSO A SHAREHOLDER OF  SUCH  COOPERATIVE  HOUSING  CORPO-
 RATION.
   §  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. 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,  EXCEPT  THAT
 SUCH  ADDITIONAL  FEES,  CHARGES OR PENALTIES MAY BE SOUGHT IN A SUMMARY
 PROCEEDING BROUGHT BY A COOPERATIVE HOUSING CORPORATION AGAINST A TENANT
 WHO IS A SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPORATION.
   § 5. Section 234 of the real property law, as amended by section 8  of
 part M of chapter 36 of the laws of 2019, is amended to read as follows:

 S. 5105                             3
 
   §  234.  Right  to  recover  attorneys'  fees  in  actions  or summary
 proceedings arising out of leases of residential  property.  Whenever  a
 lease of residential property shall provide that in any action or summa-
 ry  proceeding  the landlord may recover attorneys' fees and/or expenses
 incurred  as  the  result  of  the  failure of the tenant to perform any
 covenant or agreement contained in such lease, or that amounts  paid  by
 the  landlord  therefor  shall be paid by the tenant as additional rent,
 there shall be implied in such lease a covenant by the landlord  to  pay
 to the tenant the reasonable attorneys' fees and/or expenses incurred by
 the  tenant  as the result of the failure of the landlord to perform any
 covenant or agreement on its part to be performed under the lease or  in
 the  successful defense of any action or summary proceeding commenced by
 the landlord against the tenant arising out of the lease, and an  agree-
 ment  that such fees and expenses may be recovered as provided by law in
 an action commenced against the landlord or by way  of  counterclaim  in
 any  action  or summary proceeding commenced by the landlord against the
 tenant. A landlord may not recover attorneys' fees upon a default  judg-
 ment. Any waiver of this section shall be void as against public policy.
 NOTHING IN THIS SECTION SHALL PROHIBIT A COOPERATIVE HOUSING CORPORATION
 FROM RECOVERING ATTORNEYS' FEES IN AN ACTION AGAINST A TENANT WHERE SUCH
 TENANT IS ALSO A SHAREHOLDER OF SUCH COOPERATIVE HOUSING CORPORATION.
   §  6.  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
 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 MAY PROVIDE FOR A DEADLINE IN EXCESS  OF
 FIVE  DAYS  AND A METHOD OF SENDING NOTICE OTHER THAN BY CERTIFIED MAIL,
 AS LONG AS SUCH DEADLINE AND METHOD OF SENDING NOTICE IS PROVIDED FOR IN
 THE PROPRIETARY LEASE, AND THE LESSEE IS A SHAREHOLDER OF  SUCH  COOPER-
 ATIVE HOUSING CORPORATION.
   § 7. This act shall take effect immediately and shall apply to actions
 and proceedings commenced on or after such effective date.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5105--A
 
                        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

 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation  to  grounds  where no landlord-tenant relationships exist in
   cooperative apartments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property actions and proceedings law is amended by
 adding a new section 713-b to read as follows:
   § 713-B. GROUNDS WHERE NO LANDLORD TENANT RELATIONSHIPS EXIST IN COOP-
 ERATIVE APARTMENTS. 1. A PERSON SHALL NOT BE CONSIDERED A TENANT FOR THE
 PURPOSES  OF  SECTION  7-108 OF THE GENERAL OBLIGATIONS LAW AND SECTIONS
 TWO HUNDRED TWENTY-SEVEN-F, TWO HUNDRED  TWENTY-SIX-C  AND  TWO  HUNDRED
 THIRTY-EIGHT-A OF THE REAL PROPERTY LAW, WHERE SUCH PERSON:
   (A)  IS  A  DWELLING UNIT OWNER OF A COOPERATIVE APARTMENT OR A SHARE-
 HOLDER OF THE OWNERSHIP ENTITY;
   (B) HAS EXCLUSIVE OCCUPANCY OF SUCH DWELLING UNIT; AND
   (C) HAS ESTABLISHED AND DELIMITED RIGHTS UNDER A PROPRIETARY LEASE.
   2. NOTWITHSTANDING THE PROVISIONS OF SECTION SEVEN HUNDRED TWO OF THIS
 ARTICLE, MAINTENANCE FEES, SPECIAL ASSESSMENTS, AND ADMINISTRATIVE  FEES
 COLLECTED FROM A UNIT OWNER BY THE COOPERATIVE APARTMENT UNDER A PROPRI-
 ETARY  LEASE  SHALL  NOT  BE CONSIDERED RENT AS DEFINED IN SECTION SEVEN
 HUNDRED TWO OF THIS ARTICLE AND MAY BE SOUGHT IN ADDITION TO RENT  IN  A
 SUMMARY PROCEEDING PURSUANT TO THIS ARTICLE.
   3.  NOTWITHSTANDING  THE PROVISIONS OF SECTION TWO HUNDRED THIRTY-FOUR
 OF THE REAL PROPERTY 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 A PROPRIETARY LEASE.
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD03421-03-1

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5105--B
 
                        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
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation  to  grounds  where no landlord-tenant relationships exist in
   cooperative apartments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property actions and proceedings law is amended by
 adding a new section 713-b to read as follows:
   § 713-B. GROUNDS WHERE NO LANDLORD TENANT RELATIONSHIPS EXIST IN COOP-
 ERATIVE APARTMENTS. 1. A PERSON SHALL NOT BE CONSIDERED A TENANT FOR THE
 PURPOSES  OF  SECTION  7-108 OF THE GENERAL OBLIGATIONS LAW AND SECTIONS
 TWO HUNDRED TWENTY-SEVEN-F, TWO HUNDRED  TWENTY-SIX-C  AND  TWO  HUNDRED
 THIRTY-EIGHT-A OF THE REAL PROPERTY LAW, WHERE SUCH PERSON:
   (A)  IS  A  DWELLING UNIT OWNER OF A COOPERATIVE APARTMENT OR A SHARE-
 HOLDER OF THE OWNERSHIP ENTITY;
   (B) HAS EXCLUSIVE OCCUPANCY OF SUCH DWELLING UNIT; AND
   (C)  HAS  ESTABLISHED  AND  DELIMITED  RIGHTS  UNDER   A   PROPRIETARY
 LEASE/OCCUPANCY AGREEMENT.
   2. NOTWITHSTANDING THE PROVISIONS OF SECTION SEVEN HUNDRED TWO OF THIS
 ARTICLE,  MAINTENANCE FEES, SPECIAL ASSESSMENTS, AND ADMINISTRATIVE FEES
 COLLECTED FROM A UNIT OWNER BY THE COOPERATIVE APARTMENT UNDER A PROPRI-
 ETARY LEASE/OCCUPANCY AGREEMENT SHALL NOT BE CONSIDERED RENT AS  DEFINED
 IN  SECTION SEVEN HUNDRED TWO OF THIS ARTICLE AND MAY BE SOUGHT IN ADDI-
 TION TO RENT IN A SUMMARY PROCEEDING PURSUANT TO THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03421-05-1
              

 S. 5105--B                          2
 
   3. NOTWITHSTANDING THE PROVISIONS OF SECTION TWO  HUNDRED  THIRTY-FOUR
 OF THE REAL PROPERTY 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 A PROPRIETARY LEASE/OCCUPANCY AGREEMENT.
   § 2. This act shall take effect immediately.