Prohibits any lessor or agent of a lessor from reporting to any consumer reporting agency, and prohibits consumer reporting agencies from maintaining such information.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2192A
SPONSOR: Rosenthal L TITLE OF BILL:
An act to amend the real property law and the general business law, in
relation to prohibiting landlords from reporting a late rent payment to
a consumer reporting agency
PURPOSE:
Prohibits landlords from reporting a late rent payment to a consumer
reporting agency.
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends subdivision 2 of section 238-a of the real property
law.
Section two amends subparagraphs (vii) and (viii) of paragraph 1 of
subdivision (f) of section 380-j of the general business law.
Section three establishes the effective date.
JUSTIFICATION:
New York is in the midst of a housing crisis and tenants across the
country are experiencing financial hardship. According to an August 2021
New York State Comptroller report, nearly 1.3 million tenants are rent-
burdened, meaning they spend more than 30% of their income on housing
costs. This same report found that of the 1.2 million low-income rental
households in New York City, an overwhelming 78% are rent-burdened.
Currently, landlords in New York State have the option to report late
rental payments to credit agencies, which can have devastating impacts
on tenants. Any emergency or unexpected loss of income may cause a late
rental payment, and tenants should not have to face damage to their
credit score because of it. The reporting of late rental payments to
credit agencies can cause immediate damage to a tenant's credit score,
impacting their ability to receive loan and mortgage approvals, rental
housing and more. Landlords can use this reporting as a harassment tool,
even when a late payment is an anomaly. Such reporting unfairly puts
rent-burdened New Yorkers at an even greater risk of housing insecurity
and homelessness.
LEGISLATIVE HISTORY:
2021-22: A. 10675 - Referred to Housing
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall be effective immediately
