§ 238-a. Limitation on fees. In relation to a residential dwelling\nunit:\n 1. (a) Except in instances where statutes or regulations provide for a\npayment, fee or charge, no landlord, lessor, sub-lessor or grantor may\ndemand any payment, fee, or charge for the processing, review or\nacceptance of an application, or demand any other payment, fee or charge\nbefore or at the beginning of the tenancy, except background checks and\ncredit checks as provided by paragraph (b) of this subdivision, provided\nthat this subdivision shall not apply to entrance fees charged by\ncontinuing care retirement communities licensed pursuant to article\nforty-six or forty-six-A of the public health law, assisted living\nproviders licensed pursuant to article forty-six-B of the public health\nlaw, adult care facilities licensed pursuant to article seven of the\nsocial services law, senior residential communities that have submitted\nan offering plan to the attorney general, or not-for-profit independent\nretirement communities that offer personal emergency response,\nhousekeeping, transportation and meals to their residents. Nothing in\nthis paragraph shall prohibit a cooperative housing corporation, other\nthan a cooperative housing corporation subject to the provisions of\narticle two, article four, article five or article eleven of the private\nhousing finance law, from demanding from a prospective tenant any\npayment, fee or charge which is necessary to compensate a managing agent\nand/or transfer agent for the processing, review or acceptance of such\nprospective tenant's application where such prospective tenant would\nbecome a dwelling unit owner or shareholder of such cooperative housing\ncorporation.\n (b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees\nto reimburse costs associated with conducting a background check and\ncredit check, provided the cumulative fee or fees for such checks is no\nmore than the actual cost of the background check and credit check or\ntwenty dollars, whichever is less, and the landlord, lessor, sub-lessor\nor grantor shall waive the fee or fees if the potential tenant provides\na copy of a background check or credit check conducted within the past\nthirty days. The landlord, lessor, sub-lessor or grantor may not collect\nthe fee or fees unless the landlord, lessor, sub-lessor or grantor\nprovides the potential tenant with a copy of the background check or\ncredit check and the receipt or invoice from the entity conducting the\nbackground check or credit check. Notwithstanding the provisions of this\nparagraph, a cooperative housing corporation shall be permitted to\ncharge a fee or fees to reimburse costs associated with conducting a\nbackground check and credit check in excess of twenty dollars, where the\npotential tenant would become a dwelling unit owner or shareholder of\nsuch cooperative housing corporation, provided the cumulative fee or\nfees for such checks is no more than the actual cost of such background\ncheck and/or credit check. Further, with regard to a cooperative housing\ncorporation subject to the provisions of article two, article four,\narticle five or article eleven of the private housing finance law, all\nsuch fees must be reasonable and approved by the agency supervising such\ncooperative housing corporation.\n 2. No landlord, lessor, sub-lessor or grantor may demand any payment,\nfee, or charge for the late payment of rent unless the payment of rent\nhas not been made within five days of the date it was due, and such\npayment, fee, or charge shall not exceed fifty dollars or five percent\nof the monthly rent, whichever is less; provided a cooperative housing\ncorporation, other than a cooperative housing corporation subject to the\nprovisions of article two, article four, article five or article eleven\nof the private housing finance law, shall be permitted to charge a\ntenant that is a dwelling unit owner or shareholder of such cooperative\nhousing corporation
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