Bill Text: NY A04991 | 2025-2026 | General Assembly | Introduced
Bill Title: Prohibits the use of an algorithmic device by a landlord for the purpose of determining the amount of rent to charge a residential tenant; declares that such use is an unfair or deceptive trade practice.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-10 - referred to housing [A04991 Detail]
Download: New_York-2025-A04991-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4991 2025-2026 Regular Sessions IN ASSEMBLY February 10, 2025 ___________ Introduced by M. of A. BICHOTTE HERMELYN -- read once and referred to the Committee on Housing AN ACT to amend the real property law, in relation to prohibiting the use of an algorithmic device by a landlord for the purpose of deter- mining the amount of rent to charge a residential tenant The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative declaration. The legislature finds that the use 2 of algorithmic devices has been the subject of lawsuits that allege such 3 products pose a heightened risk of anticompetitive conduct, price 4 fixing, and collusion, all of which allegedly result in higher rents for 5 residential tenants, and allegedly poses the risk that landlords will 6 outsource pricing decisions, which the legislature determines should 7 always be made by the landlord. 8 Therefore, the legislature declares that, with certain exceptions, the 9 use of an algorithmic device by a landlord to set the amount of a resi- 10 dential tenant's rent is prohibited. 11 § 2. The real property law is amended by adding a new section 222-a to 12 read as follows: 13 § 222-a. Determination of rent amount; use of an algorithmic device in 14 setting rent amount prohibited. 1. In setting the amount of rent to be 15 charged to a tenant for the occupancy of a residential premises, includ- 16 ing determining any change in the amount of rent to be charged for the 17 renewed occupancy of a residential premises, a landlord shall not 18 employ, use, or rely upon, or cause another person to employ, use, or 19 rely upon, an algorithmic device that uses, incorporates, or was trained 20 with nonpublic competitor data. 21 2. A violation of subdivision one of this section is a deceptive act 22 or practice as provided in section three hundred forty-nine of the 23 general business law, and a person who commits a violation is subject to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06120-01-5A. 4991 2 1 all penalties and remedies described in article twenty-two-A of the 2 general business law. 3 3. As used in this section: 4 a. "algorithmic device" means a device that uses one or more algo- 5 rithms to perform calculations of data, including data concerning local 6 or statewide rent amounts being charged to tenants by landlords, for the 7 purpose of advising a landlord concerning the amount of rent that the 8 landlord may consider charging a tenant. "Algorithmic device": 9 (i) includes a product that incorporates an algorithmic device; and 10 (ii) does not include: 11 (A) any report published periodically, but no more frequently than 12 monthly, by a trade association that receives renter data and publishes 13 it in an aggregated and anonymous manner; or 14 (B) a product used for the purpose of establishing rent or income 15 limits in accordance with the affordable housing program guidelines of a 16 local government, the state, the federal government, or other political 17 subdivision. 18 b. "Nonpublic competitor data" means information that is not widely 19 available or easily accessible to the public, including information 20 about actual rent prices, occupancy rates, lease start and end dates, 21 and similar data, regardless of whether the data are attributable to a 22 specific competitor or anonymized, and that is derived from or otherwise 23 provided by another person that competes in the same market as a person, 24 or a related market. 25 c. "Rent" means the total amount of rent, including concessions and 26 fees, that a residential tenant is required to pay pursuant to a rental 27 agreement. 28 § 3. This act shall take effect on the ninetieth day after it shall 29 have become a law and shall apply to a landlord's calculation of the 30 amount of rent that the landlord charges for the occupancy of a residen- 31 tial premises pursuant to any rental agreement that is executed on or 32 after the effective date of this act.
