5.1 Housing Stability and Tenant Protection Act (HSTPA 2019)
Key Takeaways
- The Housing Stability and Tenant Protection Act (HSTPA) of 2019 enacted comprehensive statutory reforms across New York State, capping residential application fees at the actual cost of background/credit checks or $20 maximum.
- Residential security deposits are strictly capped at one month's rent under General Obligations Law § 7-108 (HSTPA 2019), prohibiting landlords from collecting advance rent or multi-month security deposits.
- Landlords must return security deposits with an itemized accounting within 14 calendar days after tenant vacates; failure to comply forfeits the right to retain any portion, and willful retention risks statutory treble damages.
- Written notice of non-renewal or rent increases exceeding 5% under RPL § 226-c requires 30 days for tenure under 1 year, 60 days for 1 to 2 years, and 90 days for tenure over 2 years.
- Real Property Actions and Proceedings Law (RPAPL) Article 7 requires a 14-day written notice to quit for nonpayment evictions and prohibits prospective landlord blacklisting based on tenant court history.
5.1 Housing Stability and Tenant Protection Act (HSTPA 2019)
Exam Focus: The Housing Stability and Tenant Protection Act (HSTPA) of 2019 represents one of the most sweeping reforms of residential landlord-tenant law in New York State history. Enacted on June 14, 2019, the HSTPA dramatically altered Real Property Law (RPL), General Obligations Law (GOL), and Real Property Actions and Proceedings Law (RPAPL). Candidates taking the New York Real Estate Broker Exam must master statutory fee caps, security deposit regulations, itemized return timelines, non-renewal notice thresholds, and tenant protections during summary eviction proceedings.
1. Statutory Context & Legislative Purpose
Prior to June 2019, New York's landlord-tenant legal framework allowed significant flexibility in security deposit amounts, upfront fee collection, and rapid vacancy deregulation of rent-regulated units. The enactment of the Housing Stability and Tenant Protection Act (HSTPA) of 2019 shifted the legal paradigm by establishing robust, statewide tenant protections across both market-rate and rent-regulated residential housing.
The HSTPA applies to virtually all residential tenancies throughout New York State, restricting landlord practices regarding upfront costs, security deposit retention, lease non-renewals, and eviction mechanics.
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| HSTPA 2019 RESIDENTIAL TENANT PROTECTIONS |
+------------------------------------+----------------------------------------------+
| Provision / Category | Statutory Rule / Restriction |
+------------------------------------+----------------------------------------------+
| Application & Screening Fee Cap | Maximum $20.00 (or actual cost, whichever |
| | is less); waived if applicant provides check |
| | conducted within prior 30 days. |
+------------------------------------+----------------------------------------------+
| Security Deposit Maximum | Strictly capped at 1 month's rent. Advance |
| | rent prepayments prohibited. |
+------------------------------------+----------------------------------------------+
| Deposit Return & Itemization | Itemized statement & remaining funds due within |
| | 14 calendar days after tenant vacates. |
+------------------------------------+----------------------------------------------+
| Deposit Non-Compliance Penalty | Forfeiture of all retention rights; willful |
| | violation risks statutory treble damages. |
+------------------------------------+----------------------------------------------+
| Lease Non-Renewal / Rent Increase | Written notice required: 30 days (< 1 yr), |
| Notice (> 5% increase) | 60 days (1-2 yrs), 90 days (> 2 yrs). |
+------------------------------------+----------------------------------------------+
| Notice to Quit for Nonpayment | 14-day written demand (increased from 3 days).|
+------------------------------------+----------------------------------------------+
2. Application Fees, Credit Check Caps & Broker Guidance
Under Real Property Law (RPL) § 238-a, landlords and their direct managing agents are strictly prohibited from charging prospective residential tenants application fees that exceed the actual cost of a background check or credit check, capped at a statutory maximum of $20.00.
Key Rules Governing Application Fees
- Receipt & Documentation Requirements: Landlords must provide the applicant with a copy of the background or credit check report and an itemized receipt showing the actual fee paid to the third-party screening agency.
- Pre-Existing Screening Waiver: If a prospective tenant provides a recent background check or credit report completed within the past 30 calendar days, the landlord must waive the screening fee entirely.
- Department of State (DOS) Broker Fee Guidance: The New York Department of State issued regulatory guidance clarifying how RPL § 238-a applies to licensed real estate brokers and salespersons. While landlords and landlord-agents cannot exceed the $20 cap, a broker operating strictly as a tenant's agent under a written representation agreement may collect compensation directly from their tenant-client for professional brokerage services, provided the fee is separate from property application screening costs.
3. Security Deposit Limits & Handling (GOL §§ 7-103 & 7-108)
Under New York General Obligations Law (GOL) §§ 7-103 and 7-108, residential security deposits are subject to strict fiduciary and quantitative controls. The HSTPA of 2019 added GOL § 7-108, which sets the one-month cap and 14-day return rule; GOL § 7-103 continues to govern trust holding and interest.
Quantitative Cap & Advance Rent Prohibition (GOL § 7-108)
- One-Month Limit: Under GOL § 7-108(1-a), a landlord cannot demand or collect a security deposit exceeding one month's rent.
- Prohibition on Advance Rent: Landlords are strictly barred from collecting multi-month advance rent prepayments (e.g., demanding six months or a full year of rent upfront from international students or applicants lacking credit history). The total financial collection prior to tenancy commencement cannot exceed one month's rent plus one month's security deposit.
Escrow Account & Interest Obligations (GOL § 7-103)
Security deposits remain the legal property of the tenant and must be held in trust by the landlord in a New York banking organization.
- Commingling Barred: Landlords cannot commingle security deposits with personal or operating funds.
- Interest-Bearing Accounts: For residential properties containing 6 or more units, the landlord must deposit funds into an interest-bearing escrow account. The landlord is permitted to retain 1.0% per annum of the deposited funds as an administrative fee, while the remaining accrued interest must be credited to the tenant (or paid annually upon request).
4. The 14-Day Deposit Return Rule & Treble Damages
The HSTPA enacted stringent post-tenancy deposit accounting standards to eliminate arbitrary deposit retention.
Mandatory 14-Day Timeline
Under GOL § 7-108, within 14 calendar days after a tenant vacates the premises, the landlord must provide an itemized statement specifying any deductions for unpaid rent or actual physical damages exceeding normal wear and tear, accompanied by any remaining deposit balance.
Consequences of Non-Compliance
- Forfeiture of Retention Rights: If a landlord fails to provide the itemized accounting and return the funds within the mandatory 14-day window, the landlord forfeits all legal rights to retain any portion of the security deposit, regardless of physical damage or unpaid rent.
- Treble Damages for Willful Retention: In court proceedings, if a judge finds that a landlord willfully retained the security deposit in violation of the statute, the landlord is liable for treble damages (three times the total security deposit amount) plus reasonable attorney's fees.
5. Mandatory Notice Requirements for Rent Increases & Non-Renewals (RPL § 226-c)
Real Property Law § 226-c establishes statutory notice periods that landlords must provide before raising rent by 5.0% or more, or before electing not to renew a residential tenancy. The mandatory advance notice period is governed by the length of the tenant's occupancy or lease term.
| Length of Tenancy / Lease Term | Mandatory Advance Written Notice |
|---|---|
| Less than 1 year (or no lease) | 30 calendar days |
| 1 year to 2 years | 60 calendar days |
| Greater than 2 years | 90 calendar days |
If a landlord fails to provide the required written notice within the statutory window, the existing tenancy continues under the same terms and rent level until the required notice period expires.
6. Eviction Reforms & Tenant Protections (RPAPL Article 7)
The HSTPA significantly restructured summary eviction proceedings under Real Property Actions and Proceedings Law (RPAPL) Article 7 to expand tenant due process rights.
Key Eviction Amendments
- 14-Day Written Demand for Nonpayment: Before filing a nonpayment eviction petition, landlords must serve a 14-day written demand to quit (increased from the pre-HSTPA requirement of 3 days).
- Court Stays of Eviction Warrants: Judges possess discretion under RPAPL § 753 to grant stays of eviction warrants for up to 1 year if the tenant demonstrates extreme hardship (e.g., medical illness, child school placement difficulties, or lack of affordable replacement housing).
- Prohibition of Tenant Blacklists: Landlords and screening companies are strictly prohibited from refusing to rent to prospective tenants based on prior involvement in landlord-tenant court proceedings. Violators are subject to civil penalties enforced by the NY Attorney General ranging from $500 to $1,000 per violation.
- Warrant of Habitability (RPL § 235-b): Implied in every residential lease, ensuring properties are safe, clean, and fit for human habitation. Landlords cannot contractually waive habitability duties.
Under New York General Obligations Law § 7-108 as amended by the HSTPA of 2019, what is the maximum residential security deposit a landlord may collect, and what is the strict statutory deadline to return the deposit with an itemized statement?
If a residential landlord in New York intentionally and willfully refuses to return a tenant's security deposit without providing an itemized statement within 14 days, what penalty may the court impose under New York law?
Under Real Property Law § 226-c, how much advance written notice must a New York landlord provide to a tenant who has occupied a residential unit for 3 years before raising the rent by 8% or electing not to renew the lease?