New York Secretary of State Rossana Rosado announced on Friday, September 13, that the Department of State’s Division of Licensing has issued a Guidance for real estate professionals regarding the Statewide Security and Tenant Protection Act of 2019 (the Act), which was signed into law by Governor Cuomo on June 14, 2019, as we discussed in a previous blog: “Housing Stability and Tenant Protection Act of 2019: Changes for Cooperatives.”
About the Security and Tenant Protection Act of 2019
As we previously noted, the Act was drafted with little or no consultation with city or state regulatory agencies, Division of Housing and Community Renewal, or Department of Housing Preservation and Development, and without input from organizations representing cooperatives.
“The new laws are a broad collection of provisions that increase tenant protection for all New Yorkers,” said Secretary Rosado. “The Guidance will help the real estate industry and other interested parties understand the new law and apply it correctly for the benefit of current and prospective tenants.”
About the New York Department of State’s Guidance
A copy of the Guidance and the Department’s letter to the real estate industry announcing the Guidance can be found on the New York Department of State’s website.
The Guidance explains the proper application of a number of provisions found in the Act. These include provisions such as one that prohibits a landlord, lessor, sub-lessor, or grantor from collecting an application fee greater than $20.00. This provision is clarified in the Guidance, stating that the limitation also applies to agents of a landlord, lessor, sub-lessor, or grantor. What does this mean for condominiums and cooperatives? The guidelines resolve the open question as to whether or not the $20.00 fee limitation also applies to applications to purchase apartments, confirming that condominium and cooperative purchases are exempt from the limit. Further, the Guidance confirms that fees for subletting and other related matters charged by the Co-op, as opposed to the shareholder or unit owner, are also exempt from the limitation period.
While these guidelines are helpful and resolve many major questions regarding the new Tenant Protection Act, numerous issues and questions remain, regarding problems such as late fees, additional charges, and notice requirements, which were set forth in the new law and are both problematic and simply confusing.
We will continue to work to clarify and resolve these issues and questions and will keep you apprised of any new developments regarding the Act. For questions regarding the Act or any other matters related to cooperatives and condominiums, please contact Dean Roberts at email@example.com.