S2980C

Senate Print 2980C, sponsored by Sen. Kavanagh, was laid aside during floor consideration without debate or vote.

The New York State Senate passed legislation clarifying the fraud standard under the Housing Stability and Tenant Protection Act, with a 37-25 vote largely along party lines. Senate Print 2980C, sponsored by Sen. Kavanagh, codifies the fraud exception articulated in prior court cases like Grimm and Regina Metropolitan Company v. DHCR, which limited retroactive rent recovery claims against landlords. Supporters argued the bill merely clarifies existing law to prevent continued litigation over the Court of Appeals' 2020 decision. However, opponents, led by Sen. Martins and Sen. Palumbo, contended the legislation effectively circumvents the court's ruling by creating new liability for landlords who followed state agency guidance on deregulation. Sen. Martins argued the bill allows lawsuits against property owners for conduct that was not regulated at the time, violating due process. The bill also addresses successor rights in rent-stabilized apartments and substantial rehabilitation provisions. The debate highlighted tensions between tenant protections and landlord concerns about retroactive liability and disincentives to housing investment.