2023 New York Laws › RPP - Real Property › Article 7 - Landlord and Tenant › 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.
3.  Any  provision  of  a  lease  or  contract waiving or limiting the
provisions of this section shall be void as against public policy.