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Assembly bill preventing landlords from reporting late payments to credit agencies withdrawn

A New York State Assembly bill that would have banned landlords from reporting late rent payments to credit agencies was withdrawn this week, exposing potential difficulties for Democrats in achieving housing reform before the legislative session ends on June 8.

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The bill, proposed by Assemblywoman Linda Rosenthal, sought to protect tenants from credit score damage and potential issues securing future leases due to delayed rent payments. Rosenthal asserts that the bill would have leveled the playing field for renters, as landlords can still pursue fines or evictions for late payments. However, the proposal was deemed too open-ended by some Democratic lawmakers, who voted against it.

Simultaneously, pressure is building on lawmakers to address housing issues after Governor Kathy Hochul’s housing plan was largely rejected. Democrats are prioritizing the passage of the Good Cause Eviction bill, which stipulates that landlords must provide justified reasons for evictions and limits rent increases.

However, landlords oppose this, arguing that rent increases are necessary to keep up with inflation and cover housing costs. As the session end looms, Democrats need to agree quickly on housing reforms, and are also pushing for a Housing Access Voucher Program and a Tenant Opportunity to Purchase Act.



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