STATE OF NEW YORK
________________________________________________________________________
350--C
2021-2022 Regular Sessions
IN ASSEMBLY(Prefiled)
January 6, 2021
___________
Introduced by M. of A. BRAUNSTEIN, D. ROSENTHAL, WEPRIN, STIRPE, QUART,
SEAWRIGHT, CARROLL, PHEFFER AMATO, COLTON, HYNDMAN, DINOWITZ, GRIFFIN,
THIELE, COOK, PRETLOW, BENEDETTO, LAVINE, RICHARDSON, MONTESANO --
Multi-Sponsored by -- M. of A. McDONOUGH -- read once and referred to
the Committee on Judiciary -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
reported and referred to the Committee on Rules -- Rules Committee
discharged, bill amended, ordered reprinted as amended and recommitted
to the Committee on Rules -- Rules Committee discharged, bill amended,
ordered reprinted as amended and recommitted to the Committee on Rules
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:
1 Section 1. Paragraph (a) of subdivision 1-a of section 7-108 of the
2 general obligations law, as added by section 25 of part M of chapter 36
3 of the laws of 2019, is amended and a new subdivision 4 is added to read
4 as follows:
5 (a) No deposit or advance shall exceed the amount of one month's rent
6 under such contract, unless the deposit or advance is for an owner-occu-
7 pied cooperative apartment as provided for in subdivision four of this
8 section.
9 4. A dwelling unit shall qualify as an owner-occupied cooperative
10 apartment for the purpose of paragraph (a) of subdivision one-a of this
11 section if it meets all of the following conditions:
12 (a) the tenant is the dwelling unit owner, purchaser or shareholder of
13 such a cooperative housing corporation;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03421-15-1
A. 350--C 2
1 (b) such tenant has or will have after purchase exclusive occupancy of
2 such dwelling unit individually and with the permitted occupants pursu-
3 ant to a proprietary lease or occupancy agreement and established and
4 delimited rights under such lease or agreement; and
5 (c) such dwelling unit is not subject to the provisions of article
6 two, article four, article five, or article eleven of the private hous-
7 ing finance law.
8 § 2. Subdivision 1 of section 226-c of the real property law, as added
9 by section 3 of part M of chapter 36 of the laws of 2019, is amended to
10 read as follows:
11 1. (a) Whenever a landlord intends to offer to renew the tenancy of an
12 occupant in a residential dwelling unit with a rent increase equal to or
13 greater than five percent above the current rent, or the landlord does
14 not intend to renew the tenancy, the landlord shall provide written
15 notice as required in subdivision two of this section. If the landlord
16 fails to provide timely notice, the occupant's lawful tenancy shall
17 continue under the existing terms of the tenancy from the date on which
18 the landlord gave actual written notice until the notice period has
19 expired, notwithstanding any provision of a lease or other tenancy
20 agreement to the contrary.
21 (b) Notwithstanding paragraph (a) of this subdivision, notice shall
22 not be required under this section to be provided by a cooperative hous-
23 ing corporation, other than a cooperative housing corporation subject to
24 the provisions of article two, article four, article five or article
25 eleven of the private housing finance law, to a tenant who is a dwelling
26 unit owner or shareholder of such corporation. Nothing in this paragraph
27 shall relieve such cooperative housing corporation of any otherwise
28 applicable obligation to provide notice to such tenant pursuant to any
29 other law or any agreement between the parties.
30 § 3. Subdivisions 1 and 2 of section 238-a of the real property law,
31 as added by section 10 of part M of chapter 36 of the laws of 2019, are
32 amended to read as follows:
33 1. (a) Except in instances where statutes or regulations provide for a
34 payment, fee or charge, no landlord, lessor, sub-lessor or grantor may
35 demand any payment, fee, or charge for the processing, review or accept-
36 ance of an application, or demand any other payment, fee or charge
37 before or at the beginning of the tenancy, except background checks and
38 credit checks as provided by paragraph (b) of this subdivision, provided
39 that this subdivision shall not apply to entrance fees charged by
40 continuing care retirement communities licensed pursuant to article
41 forty-six or forty-six-A of the public health law, assisted living
42 providers licensed pursuant to article forty-six-B of the public health
43 law, adult care facilities licensed pursuant to article seven of the
44 social services law, senior residential communities that have submitted
45 an offering plan to the attorney general, or not-for-profit independent
46 retirement communities that offer personal emergency response, house-
47 keeping, transportation and meals to their residents. Nothing in this
48 paragraph shall prohibit a cooperative housing corporation, other than a
49 cooperative housing corporation subject to the provisions of article
50 two, article four, article five or article eleven of the private housing
51 finance law, from demanding from a prospective tenant any payment, fee
52 or charge which is necessary to compensate a managing agent and/or
53 transfer agent for the processing, review or acceptance of such prospec-
54 tive tenant's application where such prospective tenant would become a
55 dwelling unit owner or shareholder of such cooperative housing corpo-
56 ration.
A. 350--C 3
1 (b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees
2 to reimburse costs associated with conducting a background check and
3 credit check, provided the cumulative fee or fees for such checks is no
4 more than the actual cost of the background check and credit check or
5 twenty dollars, whichever is less, and the landlord, lessor, sub-lessor
6 or grantor shall waive the fee or fees if the potential tenant provides
7 a copy of a background check or credit check conducted within the past
8 thirty days. The landlord, lessor, sub-lessor or grantor may not collect
9 the fee or fees unless the landlord, lessor, sub-lessor or grantor
10 provides the potential tenant with a copy of the background check or
11 credit check and the receipt or invoice from the entity conducting the
12 background check or credit check. Notwithstanding the provisions of
13 this paragraph, a cooperative housing corporation, other than a cooper-
14 ative housing corporation subject to the provisions of article two,
15 article four, article five or article eleven of the private housing
16 finance law, shall be permitted to charge a fee or fees to reimburse
17 costs associated with conducting a background check and credit check in
18 excess of twenty dollars, where the potential tenant would become a
19 dwelling unit owner or shareholder of such cooperative housing corpo-
20 ration, provided the cumulative fee or fees for such checks is no more
21 than the actual cost of such background check and/or credit check.
22 2. No landlord, lessor, sub-lessor or grantor may demand any payment,
23 fee, or charge for the late payment of rent unless the payment of rent
24 has not been made within five days of the date it was due, and such
25 payment, fee, or charge shall not exceed fifty dollars or five percent
26 of the monthly rent, whichever is less; provided a cooperative housing
27 corporation, other than a cooperative housing corporation subject to the
28 provisions of article two, article four, article five or article eleven
29 of the private housing finance law, shall be permitted to charge a
30 tenant that is a dwelling unit owner or shareholder of such cooperative
31 housing corporation a fee of up to eight percent of the monthly mainte-
32 nance fee for the late payment of the monthly maintenance fee if the
33 proprietary lease or occupancy agreement provides for such fee.
34 § 4. Section 702 of the real property actions and proceedings law, as
35 added by section 11 of part M of chapter 36 of the laws of 2019, is
36 amended to read as follows:
37 § 702. Rent in a residential dwelling. 1. In a proceeding relating to
38 a residential dwelling or housing accommodation, the term "rent" shall
39 mean the monthly or weekly amount charged in consideration for the use
40 and occupation of a dwelling pursuant to a written or oral rental agree-
41 ment. No fees, charges or penalties other than rent may be sought in a
42 summary proceeding pursuant to this article, notwithstanding any
43 language to the contrary in any lease or rental agreement.
44 2. This section shall not apply to a summary proceeding in which the
45 parties are a cooperative housing corporation, other than a cooperative
46 housing corporation subject to the provisions of article two, article
47 four, article five or article eleven of the private housing finance law,
48 and a tenant who is a dwelling unit owner or shareholder of such corpo-
49 ration, provided that the proprietary lease or occupancy agreement
50 between the cooperative housing corporation and the tenant provides for
51 fees, charges, penalties or assessments other than rent to be recovera-
52 ble in such a proceeding.
53 § 5. Subdivision (d) of section 235-e of the real property law, as
54 added by section 9 of part M of chapter 36 of the laws of 2019, is
55 amended to read as follows:
A. 350--C 4
1 (d) If a lessor, or an agent of a lessor authorized to receive rent,
2 fails to receive payment for rent within five days of the date specified
3 in a lease agreement, such lessor or agent shall send the lessee, by
4 certified mail, a written notice stating the failure to receive such
5 rent payment. The failure of a lessor, or any agent of the lessor
6 authorized to receive rent, to provide a lessee with a written notice of
7 the non-payment of rent may be used as an affirmative defense by such
8 lessee in an eviction proceeding based on the non-payment of rent.
9 Notwithstanding the provisions of this subdivision, a lessor which is a
10 cooperative housing corporation, other than a cooperative housing corpo-
11 ration subject to the provisions of article two, article four, article
12 five or article eleven of the private housing finance law, may provide
13 for a method of sending notice by mail other than by certified mail, as
14 long as such method of sending notice is provided for in the proprietary
15 lease or occupancy agreement, and the lessee is a dwelling unit owner or
16 shareholder of such cooperative housing corporation.
17 § 6. The opening paragraph of section 234 of the real property law is
18 designated subdivision 1 and a new subdivision 2 is added to read as
19 follows:
20 2. Notwithstanding the provisions of subdivision one of this section,
21 where a tenant is a dwelling unit owner or shareholder of a cooperative
22 housing corporation, other than a cooperative housing corporation
23 subject to the provisions of article two, article four, article five or
24 article eleven of the private housing finance law, attorney's fees may
25 be awarded to either party in the event of default judgment if recovery
26 of attorney's fees is provided for in the proprietary lease or occupancy
27 agreement.
28 § 7. This act shall take effect immediately and shall apply to actions
29 and proceedings commenced on or after such effective date.
