Prohibits residential landlords from charging tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by such landlord as a result thereof, provided such dishonored check fee was included in the initial lease.
Summary
A00056 would limit what residential landlords in New York may charge when a tenant’s rent check is returned for insufficient funds. The bill generally bars landlords, lessors, sub-lessors, and grantors from imposing any fee or charge for a dishonored rent check unless that charge was specifically included in the lease or rental contract. Even when allowed by contract, the charge could not exceed the landlord’s actual costs or fees for the returned item, or the $20 cap already referenced in the General Obligations Law, whichever is less.
The bill also amends the General Obligations Law to align the dishonored-check rule for rent payments with the new Real Property Law provision. It preserves a limited ability to recover costs for bounced rent checks, but only where the lease expressly authorizes such a fee and only up to the lower of actual costs or the statutory amount. The measure applies immediately to actions and proceedings started on or after its effective date, and it excludes cooperative housing shareholders themselves while still applying to their tenants and subtenants.
Impact
The bill would amend both the Real Property Law and the General Obligations Law to restrict landlord-imposed bounced-check fees in residential rental settings. It would not eliminate dishonored-check charges entirely, but it would require contractual authorization in the lease and cap recovery at the landlord’s actual costs or the existing statutory limit, whichever is lower. This would affect residential landlords, tenants, and related housing arrangements, including tenants and subtenants in cooperative housing.
Sentiment
The available voting history suggests the bill had meaningful but not unanimous support. It passed the Assembly Housing Committee, the Assembly floor, and the Senate floor, indicating broad legislative approval. The vote margins also show some opposition, suggesting the bill was supported as a tenant-protection measure but not without concern from members who may have viewed it as limiting landlord remedies or interfering with lease terms.
Contention
The main point of contention is the balance between tenant protection and landlord cost recovery. Supporters appear to favor preventing excessive or punitive fees on renters who miss a payment because of insufficient funds, while opponents likely object to restricting landlords’ ability to set and collect dishonored-check charges through lease agreements. A secondary issue is the bill’s reliance on lease inclusion: fees are allowed only if contracted for in advance, which may be seen as protecting notice and fairness by some and as a constraint on landlord flexibility by others.
Same As
Prohibits residential landlords from charging tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by such landlord as a result thereof, provided such dishonored check fee was included in the initial lease.
Prohibits residential landlords from charging tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by such landlord as a result thereof, provided such dishonored check fee was included in the initial lease.
Prohibits residential landlords from charging tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by such landlord as a result thereof, provided such dishonored check fee was included in the initial lease.
Renames the veterans' services law the veterans and military families law; renames the department of veterans' services the department of veterans and military families; requires the department of veterans and military families to provide certain services to military families.
Includes the Space Force as being members of the armed forces or veterans eligible for certain credits and benefits that are available to other active and veteran members of the armed forces.
Includes the Space Force as being members of the armed forces or veterans eligible for certain credits and benefits that are available to other active and veteran members of the armed forces.
National guard or federal service leave of absence for state and political subdivision employees and the definition of veteran; and to declare an emergency.
AN ACT to amend and reenact section 37-01-25, subsection 1 of section 37-01-40, and section 37-14-01.1 of the North Dakota Century Code, relating to national guard or federal service leave of absence for state and political subdivision employees and the definition of veteran; and to declare an emergency.