S2943B

The New York State Senate passed legislation clarifying the prospective application of the 2019 Housing Stability and Tenant Protection Act in response to a Court of Appeals decision that struck down certain retroactive provisions as unconstitutional. Senate Print 2943B, sponsored by Sen. Kavanagh, passed 39-24 on a party-line vote, with all 24 nays coming from Republicans. The bill establishes legislative intent regarding overcharge claims and clarifies how courts should interpret rent calculation methods going forward, while operating within constitutional constraints set by the Regina Metro v. DHCR decision. Opponents argued the legislation imposes unfair retroactive recordkeeping burdens on landlords that will drive property owners from the market and reduce housing availability. Sen. Palumbo warned the bill is "overly expansive" and will cause a "compression factor" that makes housing less available. Sen. Helming, the ranking Republican on the Housing Committee, said the bill "drives up costs" and will "jeopardize financing opportunities for new housing." Supporters, including Sen. Krueger, countered that the bill is necessary to prevent landlords from fraudulently charging rents above legal limits and to protect the limited stock of affordable rent-regulated housing. Sen. Kavanagh emphasized in his closing remarks that the bill does not create new recordkeeping requirements beyond what the HSTPA already mandated four years ago, and contains no provisions that would create the kind of unconstitutional retroactivity that the Court of Appeals rejected.