File #: Int 1432-2019    Version: * Name: Transparency in residential rental application fees.
Type: Introduction Status: Filed (End of Session)
Committee: Committee on Housing and Buildings
On agenda: 2/13/2019
Enactment date: Law number:
Title: A Local Law to amend the administrative code of the city of New York, in relation to transparency in residential rental application fees
Sponsors: Carlina Rivera , Keith Powers , Laurie A. Cumbo, Mark Levine, Justin L. Brannan, Robert F. Holden, Daniel Dromm , Stephen T. Levin, Ben Kallos, Helen K. Rosenthal, Diana I. Ayala, Adrienne E. Adams, Margaret S. Chin, Brad S. Lander, Antonio Reynoso, Farah N. Louis
Council Member Sponsors: 16
Summary: This bill would require apartment brokers to disclose an itemized explanation of how any application fee collected as part of applying for an apartment will be spent. Any person who collected such an application fee without making the required disclosure would be subject to a civil penalty of $150.
Attachments: 1. Summary of Int. No. 1432, 2. Int. No. 1432, 3. February 13, 2019 - Stated Meeting Agenda with Links to Files, 4. Hearing Transcript - Stated Meeting 2-13-19, 5. Minutes of the Stated Meeting - February 13, 2019, 6. Committee Report 6/27/19, 7. Hearing Testimony 6/27/19, 8. Hearing Transcript 6/27/19

Int. No. 1432


By Council Members Rivera, Powers, Cumbo, Levine, Brannan, Holden, Dromm, Levin, Kallos, Rosenthal, Ayala, Adams, Chin, Lander, Reynoso and Louis


A Local Law to amend the administrative code of the city of New York, in relation to transparency in residential rental application fees


Be it enacted by the Council as follows:


Section 1. Title 26 of the administrative code of the city of New York is amended by adding a new chapter 23 to read as follows:



                     § 26-2301 Definitions

                     § 26-2302 Disclosure in application fees

§ 26-2303 Penalties


                     § 26-2301 Definitions.  As used in this chapter, the following terms have the following meanings:

                     Application fee.  The term “application fee” means money, remitted in cash or otherwise, as a condition for submitting an application to rent real property for residential purposes.

Rental real estate transaction.  The term “rental real estate transaction” means a real estate transaction involving the rental of real property for residential purposes.

§ 26-2302 Disclosure in application fees. It shall be unlawful for any person to collect an application fee in connection with a rental real estate transaction from a prospective tenant without remitting to the prospective tenant an itemized list of expenses associated with processing the application that are to be paid by such fee at the time of collecting the fee.

§ 26-2303 Enforcement. The department of housing preservation and development shall have the power to enforce this chapter.

§ 26-2304 Penalties. A person who collects an application fee after failing to remit an itemized list of costs as required by section 26-2302 shall be liable for a civil penalty of $150 for each such violation. Such penalty may be recovered in a proceeding before the office of administrative trials and hearings or a court of competent jurisdiction.

§ 2. This local law takes effect 60 days after it becomes law and shall only apply to rental real estate transactions as defined in section one of this local law that are entered into on or after the effective date of this local law.                                          




LS #9412

11:08am 1/23/2019