A number of changes were made to the New York Real Property Law in 2019 which apply to both
regulated and unregulated apartments in NYC.
Changes were made to security deposits, application fees, the retaliatory eviction provision,
notice requirements for non-renewal and rent increases above 5%, tenant screening blacklists
and apartment re-letting obligations for landlords.
Limitations on Security Deposits for All Apartments
The Housing Stability and Tenant Protection Act of 2019 mandates a maximum security deposit
for both regulated and unregulated units of no more than one month of rent.
The maximum amount which may be collected upon the commencement of a lease is one month
rent and one month security deposit.
Furthermore, security deposits must now be returned to the tenant within 14 days of moving
out.
Limitations on Application and Late Fees
Under the new legislation, a tenant may only be charged the lower of $20 or the actual
cost of a credit report.
Landlords must also furnish a copy of any credit report obtained to the prospective
tenant(s).
The new legislation also caps late fees for both regulated and unregulated units to the
lesser of $50 or 5% of rent.
Retaliatory Eviction
The new legislation prohibits retaliatory eviction by a landlord against a tenant for
a period of one year after a tenant makes a good faith complaint to government authorities
or to the landlord directly alleging a violation of the warranty of habitability.
Notice Requirements for Non-Renewal and Large Rent Increases
The Housing Stability and Tenant Protection Act of 2019 increases the notice requirements
for a non-renewal of a lease or a rent increase greater than 5% to 30 days notice for leases
under a year, 60 days for leases between one and two years and 90 days for leases of 2
years or more.
Duty to Mitigate Damages for Re-Letting
The Housing Stability and Tenant Protection Act of 2019 requires landlords of both regulated
and unrelated units to make a reasonable, good faith attempt at re-letting a unit if
a tenant vacates before their lease expires.
Landlords must re-rent at the lesser of previous rent or market rent, and the existing tenant
is off the hook once a new lease is signed.
Restrictions on Usage of Housing Court Records to Screen Tenants
Under the new legislation, a landlord may not consult housing court records as part
of the screening process for a prospective tenant.
Accessing court records or tenant blacklists will automatically create a rebuttable presumption
that the landlord has violated this statute.
Changes to Housing Court Procedures
The Housing Stability and Tenant Protection Act of 2019 significantly expands the procedure
for handling non-payment of rent.
Specifically, the landlord must give a both a 5 day notice and a subsequent 14 day demand
for rent to the tenant by certified mail if the tenant does not pay rent.
Any demands for rent and subsequent non-payment summary judgement may only be in the amount
of the rent and cannot include any other charges such as late fees.
In addition, the amount of time a tenant has to answer a non-payment petition has increased
to ten (10) days from five (5).
Furthermore, landlord’s counsel is now required to submit a written motion to request continued
rent payment during proceeding.
The 2019 legislation also permits tenants to bring forth orders to show cause and seek
further stays of courts determination after trial.
Under the new legislation, landlords who illegally evict a tenant or harass a tenant to entice
a move-out are subject to prosecution for a Class A Misdemeanor and a fine between $1,000
and $10,000.