Regulon.AI — NY-A-03125 · NY A 3125-A (Automated Housing Decision Tools)

Summary

Imposes obligations on landlords who use automated housing decision making tools to screen applicants for housing in New York. Requires at least annual disparate impact analyses conducted by an independent auditor, with a summary published on the landlord's website and in housing listings before using the tool. Landlords must notify applicants at least 24 hours before using the tool, disclose the characteristics evaluated, the data collected and its sources, and the reason for any denial. Applicants must be allowed to request an alternative selection process or accommodation. Enforcement is exclusively through the Attorney General, who may investigate and bring court actions for compliance.

Enforcement & Penalties

Enforcement Authority

The Attorney General may initiate an investigation if a preponderance of the evidence, including the summary of the most recent disparate impact analysis, establishes a suspicion of a violation. The Attorney General may also initiate any action or proceeding in any court of competent jurisdiction for correction of any violation, including mandating compliance. No private right of action is created. No cure period or safe harbor is specified.

Penalties

The statute authorizes the Attorney General to seek mandating compliance and 'such other relief as may be appropriate' but does not specify statutory damages, civil penalties, or monetary remedy amounts. No attorney fees provision.

Who Is Covered

What Is Covered

"Automated housing decision making tool" means any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof, to materially automate, substantially assist, or replace human decision-making regarding housing decisions that impact natural persons. "Automated housing decision making tool" does not include a tool that does not automate, support, substantially assist, or replace discretionary decision-making processes and that does not materially impact natural persons, including, but not limited to, a junk email filter, firewall, antivirus software, calculator, spreadsheet, database, data set, or other compilation of data.

Compliance Obligations 4 obligations · click obligation ID to open requirement page

H-02 Non-Discrimination & Bias Assessment · H-02.6 H-02.7 · Deployer · Automated Decisionmaking

Real Prop. Law § 227-g(2)(a)-(b)

Plain Language

Landlords may not use an automated housing decision making tool unless they have an independent auditor conduct a disparate impact analysis at least annually. The analysis must assess the tool's actual impact on groups defined by sex, race, ethnicity, and other protected classes, and must differentiate between selected and non-selected applicants. Before implementing or using the tool, a summary of the most recent analysis and the tool's distribution date must be posted on the landlord's website and in any digital housing listing where the tool will be used. This effectively creates a pre-condition to lawful use — the tool cannot be deployed until the audit summary is public. The audit requirement closely mirrors the NYC Local Law 144 (AEDT) model — independent auditor, annual cadence, public summary — but applies specifically to housing rather than employment.

Statutory Text

It shall be unlawful for a landlord to implement or use an automated housing decision making tool, including the use of an automated housing decision making tool that issues a score, classification, or recommendation, that fails to comply with the following provisions: (a) No less than annually, a disparate impact analysis shall be conducted to assess the actual impact of any automated housing decision making tool used by any landlord to select applicants for housing within the state. Such disparate impact analysis shall be provided to the landlord. (b) A summary of the most recent disparate impact analysis of such tool as well as the distribution date of the tool to which the analysis applies shall be made publicly available on the website of the landlord prior to the implementation or use of such tool. Such summary shall also be made accessible through any listing for housing on a digital platform for which the landlord intends to use an automated housing decision making tool to screen applicants for housing.

H-01 Human Oversight of Automated Decisions · H-01.1 H-01.3 · Deployer · Automated Decisionmaking

Real Prop. Law § 227-g(3)(a)(i)-(iv)

Plain Language

Before screening an applicant, landlords must notify the applicant that an automated tool will be used, disclose which characteristics the tool evaluates, and provide information about the types of data collected, data sources, and the landlord's data retention policy. This is a pre-decision transparency obligation — the applicant must know an automated system is being used and understand what factors and data it relies on before the tool processes their application. If an applicant is denied housing through the automated tool, the landlord must disclose the reason for denial.

Statutory Text

Any landlord that uses an automated housing decision making tool to screen applicants for housing shall notify each such applicant of the following: (i) That an automated housing decision making tool will be used in connection with the assessment or evaluation of such applicant; (ii) The characteristics that such automated housing decision making tool will use in the assessment of such applicant; (iii) Information about the type of data collected for such automated housing decision making tool, the source of such data, and the landlord's data retention policy; (iv) If an application for housing is denied through use of the automated housing decision making tool, the reason for such denial.

H-01 Human Oversight of Automated Decisions · H-01.1 H-01.4 · Deployer · Automated Decisionmaking

Real Prop. Law § 227-g(3)(b)

Plain Language

The notice required under subdivision 3(a) must be provided at least 24 hours before the tool is used, and the applicant must be given the opportunity to request an alternative selection process or accommodation. The 24-hour advance notice requirement and the right to request an alternative process function together as a meaningful opt-out mechanism — applicants who do not wish to be evaluated by the automated tool can request a non-automated path before the tool is ever applied to them.

Statutory Text

(b) The notice required by paragraph (a) of this subdivision shall be made no less than twenty-four hours before the use of such automated housing decision making tool and shall allow such applicant to request an alternative selection process or accommodation.

Other · Automated Decisionmaking

Real Prop. Law § 227-g(4)

Plain Language

The Attorney General may investigate suspected violations when a preponderance of the evidence — including information from the publicly available disparate impact analysis summary — establishes suspicion. The AG may also bring court actions seeking compliance orders or other appropriate relief. This is the sole enforcement mechanism; no private right of action exists. Notably, the disparate impact analysis summaries that landlords must publish serve a dual purpose: they inform applicants and also provide the evidentiary basis for AG investigations.

Statutory Text

The attorney general may initiate an investigation if a preponderance of the evidence, including the summary of the most recent disparate impact analysis establishes a suspicion of a violation. The attorney general may also initiate in any court of competent jurisdiction any action or proceeding that may be appropriate or necessary for correction of any violation issued pursuant to this section, including mandating compliance with the provisions of this section or such other relief as may be appropriate.