LIEB BLOG

Legal Analysts

Wednesday, December 29, 2021

New Law: Co-ops under the Housing Stability and Tenant Protection Act of 2019

As of December 22, 2021, cooperatives have received 8 exemptions from the Housing Stability and Tenant Protection Act, which otherwise restricts landlords' rights as to their tenants.


When the Housing Stability and Tenant Protection Act came out, we repeatedly tried to explain to co-op boards, property managers (managing agents), real estate brokers, local NAR boards, and courts, amongst others, that this law applied to co-ops regardless that it clearly was not the intent of the legislature. To a non-lawyer intent of the legislature matters, to a lawyer the rules of statutory interpretation matter and you never get to the intent of the legislature if the statute is clear on its face, which the Housing Stability and Tenant Protection Act is. You see, co-ops are landlords and their shareholder-owner-occupiers are tenants. This is longstanding settled law, which  created a huge predicament for co-ops. 


Thankfully, roughly 2 years later, the law is finally fixed as follows:

  • GOL 7-108(1-a), the deposit or advance limit of one month’s rent will no longer apply to owner-occupied cooperative apartments;
  • RPL 226-c, the notice requirement for rent increases of 5% or more / non-renewal will no longer apply to owner-occupied cooperative apartments;
  • RPL 238-a(1)(a), the preclusion of charging fees to review applications will no longer apply to  compensate managing agents and/or transfer agents for the processing, review, or acceptance of such prospective tenant’s application to become a shareholder of such co-op; 
  • RPL 238-a(1)(b), the cap on fees for applications of $25 is inapplicable to applications from prospective shareholders to co-ops, but the limitation of only charging up to the actual cost remains;  
  • RPL 238-a(2), late fees are now permitted on owner-occupied cooperative, but only up to 8% of monthly maintenance fee and only where the proprietary lease or occupancy agreement is updated to reflect such percentage;
  • RPAPL 702(2), the limited definition of rent for purposes of a judgment in a summary proceeding is inapplicable to owner-occupied cooperatives to the extent that the proprietary lease or occupancy agreement is updated to reflect a different definition;  
  • RPL 235-e, the 5-day non-payment of rent notice does not need to be sent by certified mail to co-op owner-occupants to the extent that the proprietary lease or occupancy agreement is updated to reflect a different method of serving notice; and 
  • RPL 234, attorneys’ fees may be awarded to either party in the event of a default judgment concerning a co-op owner-occupant to the extent that the proprietary lease or occupancy agreement is updated to reflect the availability of such fees. 

We can't stress enough that half of these new updates require an updated proprietary lease / occupancy agreement to become effective. As to the other half, co-ops would also be wise to expressly provide for their rights under an updated proprietary lease / occupancy agreement. That all being said and even if a co-op does update its proprietary lease / occupancy agreement, it will remain a landlord and subject to landlord / tenant laws for every other law that restricts landlords' actions in NYS.




Monday, December 27, 2021

Restaurants Now Potentially Negligent for Grease Traps' Design & Warning Sign Defects

A new NYS law requires all food service establishments with a grease trap / interceptor to ensure that it's designed to withstand expected loads & prevent unauthorized access. This law is effective 1/10/2022. 


The law also calls for the State Fire Prevention & Building Code Counsel to create regulations about warnings / design requirements for grease traps.


Beyond providing for local governments to adopt local laws to enforce this new law, it definitely establishes exposure to restaurants for personal injuries. Restaurateurs and landlords should ensure compliance and modify their leases to establish who is responsible for compliance.   

 


NYS Liquor Authority Updates License Application Rules

The Alcoholic Beverage Control (ABC) Law in NYS is being updated. 


new law provides for payment receipts for applications, which is effective 2/20/2022. It also provides that the status of all licenses / permits should be posted on its website by 12/22/2022. This website will also provide the anticipated application process length of time as well as notifying applicants when estimates change.   

 

Another new law modifies penalties for violations. 1st time administrative / paperwork violators will now be given opportunities to fix errors (15 to 20 days) if the violation is considered minor instead of facing misdemeanor penalties. 



eSignature Impersonations are Criminal - It's About Time!

As a Christmas Present, New York State caught up with the times and updated the Penal Law to make impersonating another by electronic signature illegal. 


That makes sense. 



Thursday, December 23, 2021

Update! New York Criminalizes Falsifying Vaccination Records

Falsifying COVID-19 vaccination records, including vaccination cards, is officially a crime in New York State, effective December 22, 2021.


The new law amends §170.00 of the Penal Law to include vaccination cards as a written instrument. For a false vaccination card to be considered a written instrument the card must include either a government logo or something suggesting it was created by a government entity; it must suggest that the card was provided to a person by a vaccine provider; and must includes a date the person received the vaccine, the type of vaccine, and a lot number.


If someone violates the new law, they can be criminally charged with tampering with public records, offering a false instrument for filing, and issuing a false certificate. In addition, when someone intentionally alters, in any manner, or destroys computer material indicating that a person did or did not receive a vaccination against COVID-19, it shall be considered the crime of computer tampering.


With the new vaccination mandates in New York City now in effect, will the criminalization of falsifying vaccination cards deter people from obtaining fake vaccination cards. Comment below and let us know.


Update! New York is Ready to Receive Your Calls on Housing Discrimination

New law establishes a dedicated phone line for public use to voice complaints of housing discrimination. New York State’s Division of Human Rights will operate the phone line during regular business hours. The phone number will be posted on the Division of Human Rights website.


The law becomes effective, 120 days after December 21, 2021. 


Nothing in this Bill prevents you from hiring an attorney to pursue damages resulting from discriminatory conduct. If you believe that you suffered injuries as a result of housing discrimination, you may be entitled to compensatory damages and punitive damages plus, you can have your attorneys' fees paid for by the defendant. 

Electronic Notarization soon to be Legal in NYS, But NOT in Time for Omicron and Certainly Not Simple

Effective June 20, 2022 video and audio conferenced electronic notarizations will be legal in New York State, but why make us wait until June 20, 2022? 


The law, S1780C, was signed by the Governor on December 22, 2022, but provides its effective date is 180 after signing. So, we have to wait roughly 6 months for new Executive Law 137-a to be effective. Further, not all electronic notarizations are going to be valid with cumbersome rules being set forth in the statute and even more rules to come by the Secretary of State in the form of regulations authorized in the statute. 


The law creates a new type of notary, an Electronic Notary Public or Electronic Notary, who has registered with the Secretary of State such notary's capability of performing electronic notarial acts. Plus, the law requires this notary to "keep a copy of the recording of the video and audio conference and a notation of the type of any other identification used... for a period of at least ten years." Interestingly, electronic notarizations require the electronic notary public to be in New York State when performing the service, but the signer's location is irrelevant. 


While it seems that this law will greatly impact the ability to have wills, mortgages, and citizenship forms signed, on its face, it provides an unnecessarily complicated framework given that we've been doing simple electronic notarizations during the pandemic to much success.




Wednesday, December 22, 2021

Third-Party Delivery Services Cannot Sell or Advertise Merchant's Products Without a Valid Agreement with the Merchant

On December 21, 2021, Gov. Hochul signed Bill A04651 into law, which requires third-party delivery services to have a valid agreement with merchants before advertising, promoting, or selling any of the merchant's products on their platforms. 


So going forward, third-party delivery services such as Uber Eats, DoorDash, and GrubHub must have valid agreements with local restaurants before promoting or selling any of the restaurants' food/products. There is no question, especially during the ongoing COVID-19 pandemic, local restaurants have utilized third-party delivery service platforms to further promote their businesses, to generate new customers, and to increase overall exposure to local communities. At the same time, the use of third-party food delivery services has exploded and these third-party food delivery services have gotten away with charging local restaurants excessive fees and commissions on the delivery of a restaurant's food/products, which have diminished a restaurant's overall profit. 


This new legislation also forbids any indemnity clauses in these agreements. It is common for many third-party food delivery services to attempt to limit their own liability for any issues related to the food itself or for any accidents that occur during the delivery process. This is why third-party service agreements often contain an indemnity clause, which is a "risk-shifting" provision, in which a restaurant agrees to defend, reimburse, and hold harmless a third-party food delivery service for any and all claims arising out of the third-party food delivery services' scope of work.  


This new legislation ensures that restaurants in New York State will know precisely what fees/commissions a third-party food delivery service will charge on deliveries and also protects restaurants against claims arising from the delivery of their food/products. 


Violations of this new legislation can result in a civil penalty of up to $1,000 per violation. Additionally, a restaurant has the right to file a lawsuit for damages, which includes the civil penalty of $1,000 per violation, injunctive relief, and may even be awarded reasonable court costs and attorney's fees at the court's discretion. 


Will we see fewer restaurants advertised on third-party delivery services apps going forward in light of this new legislation? 


Will we see a snowball effect of increased lawsuits against third-party delivery services? 


Time will tell...





It's Official! Lenders Must Maintain Vacated Residential Property at the Start of a Foreclosure Action

As you may recall, a proposed bill (S1579A) was submitted to Gov. Hochul earlier this month seeking to amend the RPAPL and require lenders, assignees, or mortgage loan servicers to maintain and upkeep vacant residential property at the beginning of a foreclosure action, rather than towards the end of it. 


On December 21, 2021, Gov. Hochul signed the bill into law and it became effective immediately. 


Lenders are likely not thrilled about this new legislation considering they now face the burdensome task of maintaining and upkeeping vacated residential homes throughout the entire foreclosure process, which as we all know, could last months or even years. 


Lenders could also face the risk of being accused of trespass for gaining access to what is a supposed to be a vacant residential home that is being foreclosed upon. It is certainly not uncommon for homeowners to continue residing at a foreclosed home especially at the commencement of a foreclosure action.  


What kind of ripple effect will this new legislation have on residential foreclosure actions going forward?


Stay tuned over the coming months to find out....








New Law: Real Estate Brokerage in NYS is Changed for Good - Standardized Qualifying of Homebuyers Required

Write down December 21, 2021 as the date that real estate brokerage was changed forever in NYS. That is when S2131A was signed into law and became effective. 


If you are a real estate salesperson or an associate real estate broker at a brokerage firm that is unaware of this new law, it's time to change brokers. 


This law requires your broker to institute standardized operating procedures for the prerequisites prospective homebuyers shall meet and to submit such procedures to the Department of State. 


If procedures are changed, whatsoever, the new procedures shall be submitted within 30 days of the change. 


Plus, the law requires the Secretary of State to promulgate regulations and the combined law / regulations shall, at a minimum, require brokerages to have a policy as to: 

  1. Whether prospective clients shall show identification; 
  2. Whether an exclusive broker agreement is required; &
  3. Whether pre-approval for a mortgage loan is required. 


If you are a salesperson who is operating under a brokerage's license that fails to satisfy this new submission of procedures requirements, or if you fail to follow the procedures, you are subject to a license law violation and penalty, including revocation or suspension of your license. 


This is very serious and will also work as important evidence in any and every fair housing / discrimination litigation moving forward. 




New Law: Real Estate License Law Violation Fine Doubled to Fund Fair Housing Enforcement

Starting on February 19, 2022, the maximum fine for real estate license law violations has been doubled from $1,000 to $2,000 by S945B. Brokers beware. 


Further, 50% of these fines, for violating Article 12-A and 19 NYCRR 175, will be used to establish an Anti-Discrimination in Housing Fund (ADHF). 


The ADHF shall be controlled by the NYS Attorney General and may be used for:

  • Fair housing testing;
  • Grants to duly applying county, city, town or village human rights commissions;
  • Grants to duly applying county, city, town or village agencies specializing in the prevention of unlawful discrimination in housing; &
  • Grants to duly applying not-for-profit agencies specializing in the prevention of unlawful discrimination in housing. 
It looks like there is about to be a lot more housing discrimination litigation going on starting in 2022. Are landlords, sellers, brokers, and property managers ready? 





New RE Brokerage CE Requirement - Implicit Bias Training - Lieb School is Ready

Starting on June 19, 2022, real estate licensees in NYS will be required to complete "at least two hours of instruction pertaining to implicit bias awareness and understanding" as part of their 22.5 hours of continuing education to renew their license because of a new law, S538B


According to the law, "'implicit bias' shall mean the attitudes or stereotypes that affect an individual's understanding, actions and decisions in an unconscious manner."


Lieb School is ready and already offers an implicit bias course that counts towards the fair housing and discrimination requirements. To comply with the new law, we are re-submitting this course to count towards the required implicit bias training as well. 




New RE Brokerage CE Requirement - Cultural Competency Training - Lieb School is Ready

Starting on April 20, 2022, real estate licensees in NYS will be required to complete "at least two hours of cultural competency training" as part of their 22.5 hours of continuing education to renew their license because of a new law, S979A


Lieb School is on top of making sure that its students lead the industry, having already drafted curriculum to satisfy this requirement. Our course will educate licensees on the following subtopics:

  1. Right to Social Benefits of Integration
  2. Misunderstanding in Cultural Competency
  3. 4 Elements in Developing Cultural Competency
  4. Friction Between Cultural Sensitivity & Discrimination Law
  5. Cultural Norms, Preferences, & Challenges
  6. Cultural Competence Techniques

While this course is being finalized for licensing, we asked the Bill Sponsor, James Gaughran, for guidance on what he envisioned in the Curriculum by email on 12/15/2021. We await a response.





New NYS / Local Government Fair Housing Enforcement Obligations

As of 12/21/2021, all state agencies administering housing programs or enforcing housing laws and all localities administering housing programs and receiving funds from the state for such activities are now required to affirmatively further fair housing.


What this means is that the state and local governments will actively seek to create more diverse, inclusive communities. They will do this, according to the new law (S1353A), by:

  1. Identifying and overcoming patterns of residential segregation & housing discrimination;
  2. Eradicating racially or ethnically concentrated areas of poverty;
  3. Reducing disparities in access to opportunities;
  4. Eliminating disproportionate housing needs;
  5. Providing the public reasonable & regular opportunities to comment on fair housing issues & participate in the development & advancement of affirmative fair housing policy; &
  6. Encouraging & maintaining compliance with Article 15 of the Executive law & any other applicable anti-discrimination or fair housing law. 
While this all sounds grand, it's really just aspirational because there are no concrete actions contained in this law, except that an annual report will be available to the public. Only through calling government on the report, will concrete change really happen.



New Real Estate Brokerage Law - Office Manager's Qualification / Supervisory Requirements

If you are an associate real estate broker serving as a real estate brokerage office manager you are now responsible for your associated real estate salespersons' license law violations. Be warned. 


The statute, S2157A, amends Real Property Law section 440(6) and also requires an associate real estate broker to have been active in the real estate industry for two of the four years preceding appointment as an office manager. 


All associate real estate brokers, who manage offices, should quickly become familiar with their company's policies and procedures to the extent of checking whether they comply with Article 12-A and 19 NYCRR 175 for if they don't, you, the manager are now liable. Also, read 19 NYCRR 175.21, which defines your supervisory responsibility to include "regular, frequent and consistent personal guidance, instruction, oversight and superintendence" together with record keeping.

Best of luck. 



Monday, December 20, 2021

Vaccine Mandates are Here - OSHA's Emergency Temporary Standard is Upheld - If You Don't Like it, Seek a Variance / Accomodation NOW

On 12/17/2021, the Sixth Circuit Court of Appeals upheld the OSHA vaccine mandate for employers with 100 or more employees


Per OSHA, citations for non-compliance will start on January 10, 2022. These citations are going to be huge with penalties for non-compliance set at:

Type of ViolationPenalty
Serious
Other-Than-Serious
Posting Requirements
$13,653 per violation
Failure to Abate$13,653 per day beyond the abatement date
Willful or Repeated$136,532 per violation

To remind employers, and according to the Circuit Court, the Emergency Temporary Standard of 11/5/2021 "requires that employees be vaccinated or wear a protective face covering and take weekly tests but allows employers to choose the policy implementing those requirements that is best suited to their workplace." 

If you are questioning why OSHA has the authority to issue this Emergency Temporary Standard, the Circuit Court explained that "OSHA is charged with ensuring worker safety and health 'by developing innovative methods, techniques, and approaches for dealing with occupational safety and health problems.'” Plus, it can make an Emergency Temporary Standard if it determines “that employees are exposed to grave danger from exposure to substances or agents determined to be toxic or physically harmful or from new hazards,” and (2) that an “emergency standard is necessary to protect employees from such danger.”

If you are still unconvinced and if you are an employer that doesn't want to follow the Emergency Temporary Standard don't just ignore it. Instead, seek a variance from the standard, which is available if you can demonstrate “that the conditions, practices, means, methods, operations, or processes used or proposed to be used by an employer will provide employment and places of employment to his employees which are as safe and healthful as those which would prevail if he complied with the standard.”

If you are an unconvinced employee, seek a reasonable accommodation based upon your sincerely held religious belief or disability.

If you are instead wrongfully relying on the Fifth Circuit's stay of these guidelines, DON'T. The Sixth Circuit is the final word unless the Supreme Court elects to hear the case. The difference between the Circuit Courts' decisions came down to the enabling statute 29 USC 655(c)(1) and OSHA's authority to issue the Emergency Temporary Standard (yes, there were differences about almost everything all the way to the Commerce Clause, but that wasn't the heart of the decisions). Section 655(c)(1) provides that OSHA is required "to issue an emergency standard if necessary to protect workers from a “grave danger” presented by 'exposure to substances or agents determined to be toxic or physically harmful or from new hazards.'" Whereas the Fifth Circuit defined the terms in that phrase ("substances or agents," "toxic or physically harmful," and "grave danger,") narrowly, the Sixth Circuit took a broader holistic view. As such, this entire issue isn't about COVID, vaccines, mandates, workers, liberty, or rights. Instead, this all comes down to the rules of statutory interpretation. 



Friday, December 17, 2021

Self-Represented Tenants Entering into Stipulations of Settlement Get More Protection

Additional protections in Housing Court are being enforced in order to aid self-represented parties. When opposing parties come to an agreement during a proceeding, they sign a Stipulation of Settlement ("Stipulation"), which is a binding agreement, so it is the judge's responsibility to ensure that the parties understand the Stipulation. 


Bill A3320A relates to stipulations in summary proceedings to recover possession of real property. Moving forward, a stipulation will not be approved by the court unless the court first verifies the following:

  • All parties have been accurately and appropriately named;
  • The authority of the signatory if a named party is not present;
  • The unrepresented party understands he may try the case if he does not agree with the stipulation;
  • An opposing party's attorney did not inappropriately give advice to the unrepresented party;
  • Whether or not the unrepresented party agrees or contests any allegations in the petition or predicate notices;
  • The unrepresented party understands the claims and defenses available to him and what his options may be in light of the claims and defenses, and, that the claims and defenses are adequately addressed in the stipulation;
  • The unrepresented party agrees to the terms in the stipulation;
  • The unrepresented party understands the consequences of either party's non-compliance with the stipulation; and
  • An appropriate rent breakdown is included, if applicable. 

An allocution is the process in which the judge determines if the parties understand the terms of the Stipulation. The amended Bill offers judges a checklist, if you will, that will allow them to efficiently ensure unrepresented parties understand the agreement that they have entered into.

Landlord's attorneys should become well versed in the allocution so that they can ensure that the Court will approve their client's settlements and resolve disputes.  












Landlord Training Classes to be Included in Neighborhood Preservation and Community Renewal Activities

In an effort to improve neighborhood preservation and community renewal, New York will expand their current definition of preservation and renewal to include the administration of landlord training classes. The amended bill covers all municipalities and aims to provide assistance primarily to underserved neighborhoods. Landlords are not required to participate in these classes so they will not be penalized if they choose not to do so. 


The amended bill, A05393, which is awaiting Gov. Hochul's signature, will administer landlord training classes in the definitions of neighborhood preservation activities and community renewal activities. These classes will cover information ranging from building codes to evictions. Preservation and community renewal activities include, but are not limited to, repairs, renovations, and restorations. Ultimately, the goal of the Bill is to preserve underserved neighborhoods and to protect tenants from being unnecessarily bothered and illegally evicted by landlords. 


Landlords are having new laws thrown at them on a regular basis in light of the COVID pandemic. And if you're not tuned in, updates on regulations and new laws can be easily missed or misunderstood. These classes will afford landlords the opportunity to know what's going on in their industry. This Bill could also help landlords reduce legal fees by getting it right the first time around. 


Details have not yet been released regarding where the classes will take place, in what form - virtual or in-person, how often, and how New York will monitor whether or not a landlord has actually completed the training classes. If all goes according to plan, this Bill will be helpful to both landlords and tenants alike. The classes in theory sound like they will be an extremely useful tool for landlords. But, if a landlord is not required to attend the classes, will they actually go to them? 






Thursday, December 16, 2021

NYC Releases New COVID-19 Vaccine Requirements for all Private Sector Workers

NYC released new vaccine requirements, by Order of the Commissioner of Health and Mental Hygiene, mandating all private sector workers to be vaccinated by December 27th with at least 1 dose of any COVID-19 vaccine. A 2nd dose is required 45 days after a worker shows proof of vaccination for the Pfizer or Moderna vaccines.


The City’s new Order is its strictest yet. Businesses are prevented from allowing unvaccinated workers to enter the workplace. Further, businesses must verify and keep a record of each worker’s proof of vaccination by December 27th. Records may consist of physical copies of worker’s proof of vaccination; a business-created paper or electronic record displaying worker’s name, vaccination status, and date by which they can provide proof of second vaccination; or a daily record verifying that the business checked the worker’s vaccination status before the worker entered the workplace. Businesses should be prepared to make their records available for inspection and need to set their protocol ASAP so that they comply.


The Order includes a path for vaccination exceptions if a worker seeks a reasonable accommodation for medical or religious reasons. If such an accommodation is sought, employers must record the reasonable accommodations, and supporting documentation relevant thereto, for each worker under 1 of the above record keeping options. Moreover, NYC employers must familiarize themselves with the Cooperative Dialogue or they will face failure-to-accommodate lawsuits by the drove. 


Also of note is that proof of vaccination applies to both employees and non-employee workers such as independent contractors.


The mandate does not apply to people who work alone; people who enter a workplace briefly for a limited purpose; and Non-NYC resident performing artists, college or professional athletes, and anyone who accompanies them.


NYC provides a detailed memo explaining how businesses can properly comply with the guidelines.  Businesses are subject to fines of $1,000 for non-compliance, and escalating penalties thereafter if violations persist. NYC provides a link for those who wish to report fake proof of vaccination records in order to maintain compliance.



Americans with Disabilities Act Update: COVID-19 Considered a Disability for Purposes of Employment Discrimination

Thousands of Americans who have contracted COVID-19 may now qualify for disability under the Americans with Disabilities Act (ADA).


The Equal Employment Opportunity Commission (EEOC) passed new ADA guidelines to cover individuals with COVID-19 disabilities.


There are three ways a person can be deemed to have a COVID-19 disability under the ADA.

  1. A person with COVID-19 has an Actual Disability if the person’s medical condition or any of its symptoms is a "physical or mental" impairment that "substantially limits one or more major life activities." An individualized assessment is [required] to determine whether the effects of a person’s COVID-19 substantially limit a major life activity. This will always be a case-by-case determination.
  2. A person who has or had COVID-19 can be an individual with a Record of a Disability if the person has "a history of, or has been misclassified as having, an impairment that substantially limits one or more major life activities, based on an individualized assessment.”
  3. A person is Regarded as an Individual with a Disability if the person is subjected to an adverse action (e.g., being fired, not hired, or harassed) because the person has an impairment, such as COVID-19, or the employer mistakenly believes the person has [COVID-19].”

In some cases, regardless of whether an individual’s initial case of COVID-19, itself, constitutes an actual disability because the case-by-case evaluation does not result in such a determination, that individual’s COVID-19 may end up causing impairments that are themselves disabilities under the ADA.


If you meet either the “actual" or “record of” definition of disability you may be eligible for a reasonable accommodation at the workplace.


It is unlawful for employers to discriminate against employees or applicants based on a COVID-19 disability. Further, it is unlawful for employers to refuse to provide reasonable accommodation for those with COVID-19 disabilities if it does not place an undue hardship on the employer.


If you believe you’ve been the target of COVID-19 Disability Discrimination by an employer then you should seek the counsel of an attorney to determine the extent of your injuries. Your attorney can assist you filing a legal complaint with EEOC. If the employer is found to have acted unlawful according to the ADA, then your attorney can leverage your position so you are awarded compensatory damages, penal damages, penalties, and attorney fees.


Also, don't forget that state and local anti-discrimination laws have lower standards to qualify for protection so even if you don't qualify under the ADA, check your state, county, city, or town / village. 



Wednesday, December 15, 2021

New Law Calls for Holiday Cheer: Additional Fees on Gift Cards are now Unlawful!

Shoppers and gift givers need not worry about additional fees on Gift Cards/Certificates this holiday season. New York’s new law protects consumers from the predatory business practice of adding fees on gift cards. As mentioned in greater detail on our previous Blog, the law aims to prevent businesses from charging a plethora of additional fees on gift cards. The law further protects consumers from gift card expiration dates of fewer than 9 years, as well as prohibiting declining balances on gift cards over time. In addition, the law allows consumers to redeem remaining balances of $5 or fewer on gift cards.


If businesses are caught in violation of the Law, not only will they end up on Santa’s Naughty List, but businesses may also face court issued injunctions regardless of proof that anyone was injured or damaged because of the violation; and may face court issued fines of not more than $1,000 per violation.


If you purchased or received a gift card with added fees, an expiration date, or a declining balance then the business that issued the gift card may be liable for compensatory damages, punitive damages, penalties, and attorneys’ fees being awarded to the victim. If you believe that you were subjected to this kind of unlawful business practice by a merchant, you should speak to a lawyer and leverage New York General Business Law section 396-i to win your case.


Tuesday, December 14, 2021

New York to Criminalize Falsifying Vaccination Records

The New York State Legislature passed Bill S4516C, which criminalizes falsifying COVID-19 vaccination records including cards, and the bill awaits the Governor's signature to become effective, as law, immediately when signed. 


The Bill amends the Penal Law to include vaccination cards as a written instrument. For a false vaccination card to be considered a written instrument the card must include either a government logo or something suggesting it was created by a government entity; it must suggest that the card was provided to a person by a vaccine provider; and must includes a date the person received the vaccine, the type of vaccine, and a lot number.


The Bill also amends the Penal Law to include that when someone intentionally alters, in any manner, or destroys computer material indicating that a person did or did not receive a vaccination against COVID-19, it shall be considered the crime of computer tampering in the third degree.


The penalties for violating this new law are class A misdemeanor for tampering with public records in the second degree; class D felony for tampering with public records in the first degree; class A misdemeanor for offering a false instrument for filing in the second degree; class E felony for offering a false instrument for filing in the first degree; class E felony for issuing a false certificate; and class E felony for computer tampering in the third degree. 





Monday, December 13, 2021

Supreme Court Denies Healthcare Workers' Injunction Request on Vaccinate Mandate

The Supreme Court denied an injunctive request by healthcare workers who were required, by regulation, to be vaccinated over dissents by Justices Thomas, Gorsuch, and Alito who said the mandate violated The Free Exercise Clause. 

The basis of the request was that the regulation included exemptions for medical reasons, but not for sincere religious beliefs. According to the 20 workers seeking the injunction, "their religion teaches them to oppose abortion in any form, and because each of the currently available vaccines has depended upon abortion-derived fetal cell lines in its production or testing." 

According to New York State, the reason that no religious exemption existed was because no "sanctioned religious exemption from any organized religion" existed and in fact, religions were "encouraging the opposite." 

Interestingly, the Gorsuch dissent explains that his views on a religious exemption aren't absolute. Instead, he explains that "a State might argue, for example, that it has a compelling interest in achieving herd immunity against certain diseases in a population. It might further contend the most narrowly tailored means to achieve that interest is to restrict vaccine exemptions to a particular number divided in a nondiscriminatory manner between medical and religious objectors. With sufficient evidence to support claims like these, the State might prevail." As such, his main issue is allowing for medical related exemptions and not religious exemptions violates The Free Exercise Clause. 

Regardless, the vaccine mandate may be enforced in the healthcare setting moving forward throughout NYS.  As background, the Second Circuit had previously denied the injunction and also permitted the mandate to be enforced.


 

New York is Ready to Receive Your Calls on Housing Discrimination

The New York State Legislature passed Bill S3437C that establishes a dedicated phone line for public use to voice complaints of housing discrimination. New York State’s Division of Human Rights will operate the phone line during regular business hours. The phone number will be posted on the Division of Human Rights website.


The Bill amends Human Rights Executive Law The General Powers of the Human Rights Division, Section 295 . It awaits the Governor's signature to become effective, as law, 120 days after it is signed.

 

Nothing in this Bill prevents you from hiring an attorney to pursue damages resulting from discriminatory conduct. If you believe that you suffered injuries as a result of housing discrimination, you may be entitled to compensatory damages and punitive damages plus, you can have your attorneys' fees paid for by the defendant. 



Details Released for NYS Mask Mandate Including $1,000 Fines for Each Violation.

New York State's Department of Health issued new details for Governor Hochul's statewide mandate requiring face mask/covering at all indoor public places effective December 13, 2021 until January 15, 2022 (State will re-evaluate after this date), for all persons, over age two and able to medically tolerate a face covering/mask, regardless of vaccination status. Indoor public places are any indoor space that is not a private residence. 


The mandate does not apply to indoor public areas that require proof of vaccination as a condition of entry. However, a business cannot "mix and match" i.e. permit individuals who show proof of vaccination to enter mask free while permitting those who do not present proof of vaccination to enter wearing a mask. Either no one is permitted entry that cannot provide proof of vaccination or everyone must wear a mask (whether vaccinated or not).


For example, in a law office where everyone must show proof of vaccination to enter (employees, clients, vendors, etc.) masks are not required.  However, a retail store that does not require proof of vaccination to enter is required to ensure that all individuals present at the store (employees, customers, etc.) wear face coverings regardless of vaccination status.


Per the Department of Health, the following institutions must ensure everyone over the age of two, unless subject to applicable CDC exceptions, is masked (there is no proof of vaccination option): correctional facilities, detention centers, homeless shelters, transportation hubs, schools.


The new requirements are pursuant to New York State administrative rule 10 NYCRR 2.60.  A violation of any of these requirements is subject to a fine of $1,000 for each violation. Businesses should, thus, immediately ensure compliance or face potential crippling fines.

The Beginning of the End for Paper Copy Lease Agreements

It is the beginning of the end of paper copy lease agreements in NYS, at least for rent stabilized tenants. 


Moving forward, rent stabilized tenants are going to be processing their leases electronically because Bill A02679 passed the legislature and is pending Gov. Hochul's signature. This Bill requires that the Division of Housing and Community Renewal ("DHCR") develops regulations allowing electronic leases and signatures to be used for both leases and lease renewals of rent stabilized tenants. 


However, the Bill makes clear that electronic leases are not yet required. As such, those who may not be well-versed in technology, such as the Baby Boomer generation, need not worry about how this could affect their lease execution process as tenants will be able to choose whether or not they want to execute their lease via electronic means or via a traditional paper copy. A tenant will be presented with a form, developed by DHCR, in the top 6 languages that will confirm that the tenant has the choice whether to consent to the use of electronic records and signatures. Therefore, landlords will not be permitted to require their tenants to execute their lease by electronic means.


It is expected that electronic leases are going to become the norm sooner rather than later. They cut down on costs of office supplies, such as printer ink and paper, while provide for improved organization and retrieval. They save time by avoiding face-to-face meetings and can maximize safety in this COVID world. 


Do you think most rent stabilized tenants will choose to have their leases executed electronically? Or, will paper copies stand the test of time in a constantly evolving technology driven world? Seems unlikely. It's my guess that as the Boomer generation dissipates, paper copy leases will as well. 




Friday, December 10, 2021

Be Careful When Adding a Detached Garage or Something Similar to your Hamptons’ Home

 As of October 7th, 2021, the Town of East Hampton made changes to their Zoning Laws that are relevant to constructing an accessory structure.

 

§ 255-11-20 of the Town of East Hampton Zoning Laws states that accessory buildings, including garages, if detached from the main building, shall be not less than five feet from the main building and/or from any other accessory building, subject to two exceptions.

 

One exception is that two or more accessory buildings (including open-air appendages such as porches and screened patios) may be approved to be built or remain, without a minimum five-foot separation, so long as the total aggregate square footage of the buildings is less than 600 square feet, and none of the accessory buildings are a pool house, an art studio, or an accessory apartment, unless all three are open air appendages.

 

The second exception, is that an enclosed hallway, breezeway or other design feature that functionally separates two livable spaces in a single-family dwelling or separates a livable space in a single-family dwelling and a detached garage, does not apply to § 255-11-20, so long as the width of such hallway, breezeway or design feature is equal to or greater than ½ of its length.

 

An accessory building is a building which is customarily secondary to a main building. Accessory units do not include a building which is designed, equipped, or used for cooking, living or sleeping purposes. A common accessory building is a garage.

 

So, if you plan on purchasing a house with an accessory building like a detached garage, or even plan on building one at your Hamptons house, you should comply with this law to avoid liability.








Increased Discrimination Training For Real Estate Brokers & Salespersons

Starting on July 1, 2022, Bill (S2132B) will add increased fair housing and discrimination training for Real Estate Brokers and Salespersons. 


Summary:

  • Requires course content to include:
    1. Legacy of segregation, unequal treatment, and historic lack of access to opportunity in housing;
    2. Unequal access to amenities and resources on the basis of race, disability and other protected characteristics;
    3. Federal, state, and local fair housing laws;
    4. Anti-Bias training.
  • Requires 152 hours of training to obtain a Real Estate Broker license
  • Requires 77 hours of training to become a licensed Real Estate Salesperson
  • Requires approval of faculty to sign a document, under oath, approved by and submitted to the Department of State, attesting to compliance with all applicable statutory and regulatory requirements pertaining to the instruction of the established curriculum. There will be penalties for faculty that fail to meet their obligations including suspension and revocation of their instructor certificate.





New RE Brokerage Law: NYS Funding For Fair Housing Testing Efforts

Now there is another initiative by New York State to combat discrimination in real estate.


Effective as of December 21, 2021 a $30 fee has been added for real estate broker / salespersons licenses to cover the costs of the Attorney General to fund fair housing testing throughout NYS. 


Senate Bill S32133A adds a surcharge to the fee paid for issuing or reissuing a real estate broker or salesmen license. 




Owners & Landlords Are No Longer Able to Recover Legal Fees Unless Given Authority by the Court

A new law on landlord's ability to collect legal fees was signed by Gov. Hochul on December 21, 2021 and is effective immediately. The law, S2014, means a lot to owners and landlords in New York. The Bill prohibits owners and landlords from charging lessees any legal fee, surcharge, or other charges for legal services in connection to operating or renting a residential unit, unless the owner/landlord has the legal authority to do so. A lessee is only responsible to pay legal fees if directed by a court order. However, you only get a court order if you go to court and do not resolve issues beforehand. As a result, legal fees for out-of-court negotiations, lease drafting, amendments, and the like are no longer recoverable.


Do you think that owners and landlords will be less likely to resolve disputes without going to court if they can't recover their legal fees? 


It’s no secret that legal work can be costly. So, it is typical for landlord-petitioners to try and recoup the money that they spend retaining an attorney and all of the expenses that come with legal work and legal actions. Aside from legal representation, additional legal fees can include court fees, notary public charges, and administrative charges, to name a few. This bill is aimed at the costs of lease preparation, pre-litigation negotiations, and all the work that landlords need in order to avoid a court case. 


Co-ops are technically landlords to their residents and as a result, all legal fees imposed by the Board for sales, document review, and the like may no longer be recoverable based on this law.  There is no carveout for Co-ops and that needs to be addressed. Perhaps, Governor Hochul should have told the legislature to get it right before she signed the Bill into law.


This is just another obstacle for owners and landlords, which increases the cost of business, and eventually, the rent paid by tenants.





TX Abortion Case Decided by US Supreme Court

To remind you, this is the case that deputized private citizens to enforce the Texas Heartbeat Act (S. B. 8) and rewarded citizens with a $10,000 bounty for their services. 


In its decision, the Supreme Court permitted courts to hear pre-enforcement challenges to test S. B. 8’s compliance with the Federal Constitution rather than forcing those who were subject to it to first violate the law, be prosecuted, and defend themselves before first raising such Constitutional challenges. Had the Supreme Court not so ruled, it was expected that the threat of the law would chill abortions across TX even if the law ultimately was found to violate the US Constitution.  


A pre-enforcement challenge permits anyone who thinks that a law violates the constitution to bring a lawsuit, in court, and have a court rule whether the law is enforceable or should be struck down before that person violates the law. It's like asking for permission for your actions in the face of a law, that exists, but is possibly violative of the US Constitution. 


The Court limited its holding by dismissing the Judge, Clerk, and Attorney General named in the lawsuit. Instead, the Court directed that a pre-enforcement challenge must be brought against executive licensing officials, in state court, or through other unnamed avenues.


Stay tuned, this was just round one of the TX abortion law. 




COVID-19 Vaccine Mandate for Federal Contractors Stayed by Federal Judge.

The ruling by a Georgia federal judge does not prevent employers or businesses from enforcing vaccine mandates. Rather, the Court issued a nationwide stay of President Biden's Executive Order which required all federal contractors to be fully vaccinated by January 18, 2021.


While the Judge expressed his understanding of the dangers of this public health crisis, he, nevertheless, issued the stay because he believed the Executive Order exceeds the President's authority. The Court further reasoned that the potential harm from enforcing a vaccine mandate on federal contractors (causing many federal contractors to breach their contracts when their employees refuse to get vaccinated) outweighs the harm to public health if the contractors are not vaccinated.


Biden will likely appeal this ruling to end the stay. Do you agree with the Judge's reasoning? Would this Executive Order result in a federal contractor employment crisis? Let us know in the comments below.



We'll be sure to keep you updated as this legal fight continues!


Thursday, December 09, 2021

Lenders May Soon Be Forced to Maintain Vacated Foreclosed Residential Property at the Start of a Foreclosure Action

A bill (S1579A) awaiting Gov. Hochul's signature will amend section 1307 of New York Real Property Actions and Proceedings Law ("RPAPL") & require plaintiffs, lenders, assignees, or mortgage loan servicers in a residential mortgage foreclosure action to maintain vacated foreclosed property at the commencement of a foreclosure action. 


Currently, section 1307 of the RPAPL imposes a similar duty on plaintiffs to maintain vacated foreclosed property after obtaining a judgment of foreclosure and sale through the time ownership of the vacated foreclosed property has been transferred to another party. 


It is not uncommon for residents who fall behind on their mortgage to leave or abandon their homes. As a result, lenders will commence a foreclosure action, but may delay in taking control of the vacated or abandoned property, resulting in unmaintained and deteriorating property. 


As we all know, the foreclosure process in New York State can be quite lengthy and, in many instances, it can take years for a plaintiff or lender to obtain a judgment of foreclosure and sale. 


Requiring plaintiffs or lenders to maintain abandoned or vacated foreclosed property at the start of a foreclosure proceeding ensures that the foreclosed property will not deteriorate due to lack of maintenance and upkeep and will ensure that the future owner of the foreclosed property will have a home that is in adequate, or even pristine condition, at the time of closing. 


On the other hand, plaintiffs and lenders will likely argue that this amendment places an undue burden on them since they now have to maintain a vacated property at the start of a foreclosure action, rather than towards the tail end of it. 


This could cause lenders to either: 

  1. Move quickly in a foreclosure action rather than take their time, or 
  2. Delay or limit foreclosure actions altogether in order to avoid the burden of maintaining a vacant or abandoned residential home at the start of a foreclosure proceeding. 


Regardless, aren't there going to be disputes as to whether a property was abandoned and whether the lender was trespassing? Would you want a lender going into your home, even if they were maintaining it, as obligated? 


Lenders would be wise to seek court orders confirming that property is abandoned and they can enter prior to acting under this bill, if it becomes law. Otherwise, they should expect to be counterclaimed for trespassing as they don't have any legal right to the property until the foreclosure proceeding is concluded. 


Stay tuned to see if Gov. Hochul signs this bill into legislation...