Bill Text: NY S03358 | 2019-2020 | General Assembly | Amended


Bill Title: Prohibits owners, lessors or agents thereof from assessing a lessee any fee for legal services in connection with any operation or rental of a residential unit unless the owner, lessor or agent has the legal authority to do so.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S03358 Detail]

Download: New_York-2019-S03358-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         3358--A
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 6, 2019
                                       ___________
        Introduced  by  Sens. JACKSON, BIAGGI -- read twice and ordered printed,
          and when  printed  to  be  committed  to  the  Committee  on  Housing,
          Construction  and  Community Development -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee
        AN  ACT  to  amend  the administrative code of the city of New York, the
          emergency tenant protection act of nineteen seventy-four, the emergen-
          cy housing rent control law and the real property law, in relation  to
          prohibiting charges for legal fees
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The administrative code of the city of New York is  amended
     2  by adding a new section 26-416 to read as follows:
     3    §  26-416  Unauthorized legal fees.  An owner, lessor or agent thereof
     4  shall be prohibited from assessing a lessee any fee, surcharge or  other
     5  charges for legal services in connection with the operation or rental of
     6  a  residential  unit  unless  the  owner,  lessor or agent has the legal
     7  authority to do so pursuant to a court order.  Legal  services  include,
     8  but are not limited to, court fees, legal representation, attorney fees,
     9  notary  public  charges,  and administrative fees incurred by the owner,
    10  lessor or agent in connection with management of the building, including
    11  actions and proceedings in a court of law. Any agreement  or  assessment
    12  to the contrary shall be void as contrary to public policy.
    13    §  2.  Section  6  of  section  4  of chapter 576 of the laws of 1974,
    14  constituting the emergency tenant protection act  of  nineteen  seventy-
    15  four, is amended by adding a new subdivision f-1 to read as follows:
    16    f-1.  An  owner,  lessor  or  agent  thereof  shall be prohibited from
    17  assessing a lessee  any  fee,  surcharge  or  other  charges  for  legal
    18  services  in  connection  with  the operation or rental of a residential
    19  unit unless the owner, lessor or agent has the legal authority to do  so
    20  pursuant  to  a court order. Legal services include, but are not limited
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00648-02-9

        S. 3358--A                          2
     1  to, court fees,  legal  representation,  attorney  fees,  notary  public
     2  charges,  and administrative fees incurred by the owner, lessor or agent
     3  in connection with management of the  building,  including  actions  and
     4  proceedings  in  a  court  of  law.   Any agreement or assessment to the
     5  contrary shall be void as contrary to public policy.
     6    § 3. Section 26-512 of the administrative code of the city of New York
     7  is amended by adding a new subdivision g to read as follows:
     8    g. An owner, lessor or agent thereof shall be prohibited from  assess-
     9  ing  a  lessee any fee, surcharge or other charges for legal services in
    10  connection with the operation or rental of a residential unit unless the
    11  owner, lessor or agent has the legal authority to do so  pursuant  to  a
    12  court  order.    Legal  services  include, but are not limited to, court
    13  fees, legal representation, attorney fees, notary  public  charges,  and
    14  administrative fees incurred by the owner, lessor or agent in connection
    15  with  management of the building, including actions and proceedings in a
    16  court of law.  Any agreement or assessment to the contrary shall be void
    17  as contrary to public policy.
    18    § 4. Subdivision 4 of section 4 of chapter 274 of the  laws  of  1946,
    19  constituting  the  emergency  housing  rent  control  law, is amended by
    20  adding a new paragraph (f) to read as follows:
    21    (f) An owner, lessor or agent thereof shall be prohibited from assess-
    22  ing a lessee any fee, surcharge or other charges for legal  services  in
    23  connection with the operation or rental of a residential unit unless the
    24  owner,  lessor  or  agent has the legal authority to do so pursuant to a
    25  court order.   Legal services include, but are  not  limited  to,  court
    26  fees,  legal  representation,  attorney fees, notary public charges, and
    27  administrative fees incurred by the owner, lessor or agent in connection
    28  with management of the building, including actions and proceedings in  a
    29  court of law.  Any agreement or assessment to the contrary shall be void
    30  as contrary to public policy.
    31    § 5. The real property law is amended by adding a new section 234-a to
    32  read as follows:
    33    §  234-a.  Unauthorized  legal fees. An owner, lessor or agent thereof
    34  shall be prohibited from assessing a lessee any fee, surcharge or  other
    35  charges for legal services in connection with the operation or rental of
    36  a  residential  unit  unless  the  owner,  lessor or agent has the legal
    37  authority to do so pursuant to a court order.   Legal services  include,
    38  but are not limited to, court fees, legal representation, attorney fees,
    39  notary  public  charges,  and administrative fees incurred by the owner,
    40  lessor or agent in connection with management of the building, including
    41  actions and proceedings in a court of law.  Any agreement or  assessment
    42  to the contrary shall be void as contrary to public policy.
    43    §  6.  This  act  shall  take  effect  immediately; provided that: (a)
    44  section 26-416 of the city rent  and  rehabilitation  law  as  added  by
    45  section  one  of  this act shall remain in full force and effect only as
    46  long as the public emergency requiring the  regulation  and  control  of
    47  residential  rents and evictions continues, as provided in subdivision 3
    48  of section 1 of the local emergency housing rent control act;
    49    (b) the amendments to section 4 of chapter 576 of  the  laws  of  1974
    50  constituting  the  emergency  tenant protection act of nineteen seventy-
    51  four made by section two of this act shall expire on the  same  date  as
    52  such  act  expires  and  shall  not affect the expiration of such act as
    53  provided in section 17 of chapter 576 of the laws of 1974;
    54    (c) the amendments to section 26-512 of chapter 4 of title 26  of  the
    55  administrative  code  of  the city of New York, made by section three of
    56  this act shall expire on the same date as such law expires and shall not

        S. 3358--A                          3
     1  affect the expiration of such law as provided under  section  26-520  of
     2  such law; and
     3    (d)  the amendments to section 4 of the emergency housing rent control
     4  law made by section four of this act shall expire on the  same  date  as
     5  such  law  expires  and  shall  not affect the expiration of such law as
     6  provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
     7  1946.
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