Bill Text: NY A00350 | 2021-2022 | General Assembly | Amended
Bill Title: Delineates instances where no landlord-tenant relationships exist in cooperative apartments.
Spectrum: Moderate Partisan Bill (Democrat 18-2)
Status: (Introduced - Dead) 2021-06-10 - substituted by s5105c [A00350 Detail]
Download: New_York-2021-A00350-Amended.html
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. LBD03421-15-1A. 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.