For Official Release
RE: New York State Housing Security and Tenant Protection Act of 2019
On June 14, 2019, Governor Andrew Cuomo signed into law the Statewide Housing Security and Tenant Protection Act of 2019 (the 'Act').
New York State Secretary of State Rossana Rosado announced on September 14, 2019 that the Department of State’s Division of Licensing (‘NYDOS - DOL’) has issued guidance for Real Estate Professionals concerning the Act.
A copy of the Guidance and the Department’s letter to the real estate industry announcing the Guidance can be found here.
The NYDOS-DOL guidance confirms that, “under the Act, a ‘landlord, lessor, sub-lessor or grantor’ is now prohibited from collecting an application fee greater than $20.00.” It further confirms that, “The $20.00 limitation applies to licensed real estate brokers and salespeople acting as an agent of the ‘landlord, lessor, sub-lessor or grantor.’ The $20.00 limit does not apply under the following circumstances:
BoardPackager has retained and consulted with legal counsel regarding the Act, which is currently being challenged in court by several organizations, including CHIP and RSA. BoardPackager interprets the Act as it pertains to BoardPackager, and is advised that the Act does not apply to BoardPackager as a vendor of products and services. BoardPackager does not fit the definition of the named classes and is not presently subject to the provisioning of § 238-a (1)(a)(b) regarding fees. BoardPackager is not a “unit owner,” does not fulfill any of these roles or duties, nor has authority to approve or deny an application for a managed building.
As for the fees that BoardPackager charges, BoardPackager is a vendor that provides a digital transaction platform, data management and storage platform and related services. The fees charged by BoardPackager to provide specialized products and services relating to building due diligence, data ingest, data storage and payment of fees for property transfers are outside the scope of the Act.
Property Management clients of BoardPackager have also retained counsel to advise on what (if any) changes at this time should be made to any property fee structure/allocation. If there are any concerns or issues, please direct them to the specific Property Management company in question.
If you have questions and concerns, please contact firstname.lastname@example.org.
Management of BoardPackager