BILL NUMBER: S3845B
SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:
An act to amend the real property law and the general obligations law,
in relation to prohibiting 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
 
SUMMARY OF SPECIFIC PROVISIONS:
Sections 1 and 2 amend respectively section 238-a of the real property
law and section 5-328 of the general obligations law by adding new
subdivisions providing that a landlord may only charge a tenant the
Greater of the actual cost of a dishonored check or $20, provided the
charge was contracted for in the initial lease and the landlord substan-
tiates any costs they incurred upon request of the tenant.
Section 3 provides the effective date
 
JUSTIFICATION:
Rent stabilized tenants are protected by regulations described in DHCR
Fact Sheet 44 from landlords charging them more than the actual cost of
a bounced check, provided a bounced check charge is specified in the
lease. This legislation creates a statutory protection for tenants, rent
stabilized or not, by capping the amount a landlord can charge a tenant
for a bounced check at $20 or whatever the actual charge incurred by the
landlord as a result of a tenant's check bouncing, whichever is greater,
provided the landlord substantiates the actually costs they incurred
upon request of the tenant.
 
LEGISLATIVE HISTORY:
2023-2024: S2483A (Hoylman-Sigal), Advanced to Third Reading
2022: A10646 (Epstein) / No Same as - Assembly Housing
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately after becoming law

Statutes affected:
S3845: 5-328 general obligations law, 5-328(3) general obligations law
S3845A: 238-a real property law, 5-328 general obligations law, 5-328(3) general obligations law
S3845B: 238-a real property law, 5-328 general obligations law, 5-328(3) general obligations law