N.Y. Real Property Law § 238-a: Limitation on fees

§ 238-a. Limitation on fees. In relation to a residential dwelling

unit:

1. (a) Except in instances where statutes or regulations provide for a

payment, fee or charge, no landlord, lessor, sub-lessor or grantor may

demand any payment, fee, or charge for the processing, review or

acceptance of an application, or demand any other payment, fee or charge

before or at the beginning of the tenancy, except background checks and

credit checks as provided by paragraph (b) of this subdivision, provided

that this subdivision shall not apply to entrance fees charged by

continuing care retirement communities licensed pursuant to article

forty-six or forty-six-A of the public health law, assisted living

providers licensed pursuant to article forty-six-B of the public health

law, adult care facilities licensed pursuant to article seven of the

social services law, senior residential communities that have submitted

an offering plan to the attorney general, or not-for-profit independent

retirement communities that offer personal emergency response,

housekeeping, transportation and meals to their residents. Nothing in

this paragraph shall prohibit a cooperative housing corporation, other

than a cooperative housing corporation subject to the provisions of

article two, article four, article five or article eleven of the private

housing finance law, from demanding from a prospective tenant any

payment, fee or charge which is necessary to compensate a managing agent

and/or transfer agent for the processing, review or acceptance of such

prospective tenant's application where such prospective tenant would

become a dwelling unit owner or shareholder of such cooperative housing

corporation.

(b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees

to reimburse costs associated with conducting a background check and

credit check, provided the cumulative fee or fees for such checks is no

more than the actual cost of the background check and credit check or

twenty dollars, whichever is less, and the landlord, lessor, sub-lessor

or grantor shall waive the fee or fees if the potential tenant provides

a copy of a background check or credit check conducted within the past

thirty days. The landlord, lessor, sub-lessor or grantor may not collect

the fee or fees unless the landlord, lessor, sub-lessor or grantor

provides the potential tenant with a copy of the background check or

credit check and the receipt or invoice from the entity conducting the

background check or credit check. Notwithstanding the provisions of this

paragraph, a cooperative housing corporation shall be permitted to

charge a fee or fees to reimburse costs associated with conducting a

background check and credit check in excess of twenty dollars, where the

potential tenant would become a dwelling unit owner or shareholder of

such cooperative housing corporation, provided the cumulative fee or

fees for such checks is no more than the actual cost of such background

check and/or credit check. Further, with regard to a cooperative housing

corporation subject to the provisions of article two, article four,

article five or article eleven of the private housing finance law, all

such fees must be reasonable and approved by the agency supervising such

cooperative housing corporation.

2. No landlord, lessor, sub-lessor or grantor may demand any payment,

fee, or charge for the late payment of rent unless the payment of rent

has not been made within five days of the date it was due, and such

payment, fee, or charge shall not exceed fifty dollars or five percent

of the monthly rent, whichever is less; provided a cooperative housing

corporation, other than a cooperative housing corporation subject to the

provisions of article two, article four, article five or article eleven

of the private housing finance law, shall be permitted to charge a

tenant that is a dwelling unit owner or shareholder of such cooperative

housing corporation a fee of up to eight percent of the monthly

maintenance fee for the late payment of the monthly maintenance fee if

the proprietary lease or occupancy agreement provides for such fee.

2-a. (a) No landlord, lessor, sub-lessor or grantor shall demand any

payment, fee, or charge from a tenant for the delivery of a check, draft

or like instrument that was given in payment for rent and subsequently

dishonored by the tenant's financial institution for insufficient funds

except as provided in paragraph (b) of this subdivision.

(b) Notwithstanding any contrary provision herein, a landlord, lessor,

sub-lessor or grantor may demand any payment, fee, or charge from a

tenant for the delivery of a dishonored check only if such payment, fee,

or charge was provided for in the lease or contract between landlord,

lessor, sub-lessor or grantor and the tenant; provided, however, that:

(i) such payment, fee, or charge shall not exceed the actual costs,

charges or fees incurred by landlord, lessor, sub-lessor or grantor for

the return of such dishonored check or the amount set forth in

subdivision three of section 5-328 of the general obligations law,

whichever is greater; and

(ii) if the payment, fee or charge exceeds the amount set forth in

subdivision three of section 5-328 of the general obligations law, the

landlord, lessor, sub-lessor or grantor shall provide to the tenant upon

request evidence substantiating the equivalence between the payment, fee

or charge and the amount of actual costs, charges or fees incurred for

the return of the dishonored check.

(c) As used in this subdivision, "dishonored check" shall have the

same meaning as such term is defined in section 5-328 of the general

obligations law.

(d) The provisions of this subdivision shall not apply to a

shareholder of a cooperative housing corporation, provided, however,

that the provisions of this subdivision shall apply with respect to any

tenant or subtenant of such a shareholder.

3. Any provision of a lease or contract waiving or limiting the

provisions of this section shall be void as against public policy.