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

2025-01-23 committee referral referred to housing

2025-04-02 committee referral reported referred to codes

2025-05-16 amend (t) and recommit to codes amend (t) and recommit to codes

2025-05-16 print number 3125a print number 3125a

2025-05-20 committee referral reported referred to rules

2025-05-29 chamber passage ordered to third reading rules cal.306

2025-05-29 reported reported

2025-05-29 rules report cal.306 rules report cal.306

2026-01-07 chamber passage ordered to third reading cal.103

Summary

Imposes obligations on landlords in New York who use automated housing decision making tools to screen applicants for housing. Requires annual independent disparate impact analysis, public posting of a summary of the analysis on the landlord's website and in housing listings, and pre-use notice to applicants at least 24 hours before the tool is used — including notice of the characteristics assessed, data collected, data sources, retention policies, and the reason for any denial. Applicants must be offered an alternative selection process or accommodation. Enforcement is by the Attorney General, who may investigate and bring court actions to mandate compliance. No private right of action or specific monetary penalties are provided.

Enforcement & Penalties

Enforcement Authority

Attorney General enforcement. 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 an action or proceeding in any court of competent jurisdiction for correction of any violation. No private right of action is created.

Penalties

The statute authorizes the Attorney General to seek mandating compliance and 'such other relief as may be appropriate.' No specific monetary penalties, statutory damages, or fee-shifting provisions are enumerated.

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 3 obligations · click obligation ID to open requirement page

H-02 Non-Discrimination & Bias Assessment · H-02.6 H-02.7 H-02.8 · Deployer · Automated Decisionmaking

Real Prop. Law § 227-g(2)(a)-(b)

Plain Language

A landlord may not use an automated housing decision making tool to screen applicants unless an independent auditor conducts a disparate impact analysis at least annually assessing whether the tool adversely impacts any group based on sex, race, ethnicity, or other protected class. The analysis must differentiate between applicants who were selected and those who were not. A summary of the most recent analysis and the distribution date of the tool version it covers must be publicly posted on the landlord's website before the tool is used and must also be accessible through any housing listing on a digital platform where the landlord intends to use the tool. This combines an independent audit mandate, a periodic review cadence, and a public disclosure obligation.

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), (3)(b)

Plain Language

Landlords using an automated housing decision making tool must notify each applicant at least 24 hours before the tool is used. The notice must cover four elements: (1) that an automated tool will be used; (2) what characteristics the tool assesses; (3) the type of data collected, its source, and the landlord's data retention policy; and (4) if the application is denied, the reason for denial. The notice must also allow the applicant to request an alternative selection process or accommodation. The 24-hour advance notice requirement and the opt-out right are notable — they are more protective than comparable laws that only require pre-decision notice without an alternative process.

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; and (iv) If an application for housing is denied through use of the automated housing decision making tool, the reason for such denial. (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

This provision establishes the Attorney General's enforcement authority, including the power to investigate based on a preponderance of evidence (which may include the publicly posted disparate impact analysis summary) and to bring court actions to mandate compliance or obtain other appropriate relief. It creates no new compliance obligation on landlords — it is the enforcement mechanism for the obligations established in subdivisions 2 and 3.

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.