On June 14, 2019, Governor Cuomo signed The Housing Stability and Tenant Protection Act of 2019, which consists of several amendments to the state’s landlord-tenant law that are aimed at strengthening protections for tenants.
This Act will significantly impact landlord-tenant matters, including landlords’ administration of their rentals, and eviction proceedings.
Many of the Act’s provisions are effective immediately, such as those that apply to non-payment eviction proceedings commenced on or after June 14, 2019, and some provisions will take effect later in the year. It is important to note that this Act also applies to proprietary leases, which means that cooperative corporations must follow the new regulations as well. Additionally, while most of the changes apply only to residential properties, some provisions may have an impact on commercial leases as well.
Some of the noteworthy provisions that landlords should familiarize themselves with are outlined as follows:
Eviction Proceedings (provisions currently effective unless otherwise noted)
1. Notice of Non Payment– After rent has been unpaid for 5 days, the landlord is required to send a written notice of non-payment of rent to the tenant by certified mail.
2. 14 Day Written Demand for Rent – Demand for rent must be in writing with at least 14 days’ written notice to the tenant(s)/occupant(s) (a change from 3 days), and served in the same manner as the petition.
3. Service of Notice and Petition – Petition and Notice of Petition must be served within 10 days of return date, but not more than 17 days before the return date (a change from prior service time of 5 and 12 days).
4. Adjournments– At the request of either party, the first adjournment of the trial must be granted by the court for not less than 14 days.
5. Lease Violations: Time to Cure: Where the proceeding is brought for a lease violation, the court shall grant a 30 day stay of issuance of the warrant, for the tenant to cure the breach.
6. Notice for Refusal to Renew or Increase Rent over 5%– (effective October 12, 2019). Sets a standard period of time for a landlord to provide notice of refusal to renew or of a rent increase greater than five percent, depending on length of tenancy:
• 30 days’ notice for a lease or occupation of less than one year;
• 60 days’ notice for a lease term or occupation of at least one year but less than two years;
• 90 days’ notice for a lease term or occupation of at least two years.
7. Payment of Rent – Payment of full amount of rent due prior to hearing on non-payment petition shall be accepted by landlord and renders nonpayment moot unless the petitioner establishes that the tenant withheld the rent due in bad faith.
8. Sheriff’s Notice– Sheriff shall give at least 14 days’ notice (changed from 72 hours’ notice) before executing the warrant of eviction.
9. Stay of Warrant – Judges have discretion to stay the warrant of eviction for 1 year on a showing of, among other things, extreme hardship.
Rental Administration
1. Application Fees – Landlord cannot charge a fee for the processing, review or acceptance of an application, or demand any other payment, fee or charge before or at the beginning of tenancy, except for background checks and credit checks. Such fees cannot exceed $20.00, and a receipt for the cost thereof must be given to the applicant before demanding payment. If the tenant had a background/credit check in the last 30 days or less, the landlord must accept the same.
Differing opinions exist in the legal community regarding whether the limitations concerning application processing fees apply to co-op corporations.
Until this issue has been definitively decided by the courts or the legislature, we would argue that co-op corporations can charge their processing fees on the basis of the individual applying to become a shareholder, rather than on the basis of becoming a tenant. Indeed, the application process for buying a co-op apartment is usually so extensive due to the fact that the purchaser is obtaining an ownership interest in the corporation rather than becoming just a tenant.
2. Security Deposits – No security deposit or advance shall exceed 1 month’s rent and must be returned within 14 days’ of the end of the occupancy together with an itemized statement indicating the basis for any amount retained. The Tenant is also entitled to a pre-rental inspection and an exit inspection.
3. Tenant’s History– No landlord of a residential premises shall refuse to rent or offer a lease to a potential tenant on the basis that the potential tenant was involved in a past or pending landlord-tenant action or summary proceeding.
4. Late fees – No landlord (including cooperative corporations) may charge for the late payment of rent unless the payment of rent has not been made within 5 days of the date it was due, and such payment, fee or charge shall not exceed 50 dollars or five percent of the monthly rent, whichever is less.
5. Duty to Mitigate – Requires landlords to make a reasonable, good faith attempt at re-letting a unit if a tenant vacates before their lease expires. If the landlord rents the term of the premises at fair market value or at the rate agreed to during the term of tenancy, the new tenant’s lease shall, once in effect, terminate the previous tenant’s lease and mitigate damages otherwise recoverable.
6. Receipts – Landlords are required to provide written receipts to tenants upon receiving payment of cash, or any instrument other than a personal check, (must be issued immediately if rent is personally transmitted, and within 15 days if indirectly transmitted). Landlord must maintain a record of all cash receipts for rent for at least 3 years.
Now, more than ever, landlords should rely on their attorneys to ensure that the law is being followed and that they do not find themselves unable to collect rent for extended periods of time.
