WHAT THIS BILL REGULATES · 3 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(7) "Virtual agentVirtual agent"Virtual agent" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.Real Prop. Law § 440(7)" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.
(8) "Artificial intelligence toolsArtificial intelligence tools"Artificial intelligence tools" or "AI tools" means an autonomous computational system that uses artificial intelligence or similar algorithmic systems to provide functions for an online housing platform, other than acting as a virtual agent, including but not limited to, captioning services and displaying housing-related advertisements to users of such online housing platform.Real Prop. Law § 440(8)" or "AI tools" means an autonomous computational system that uses artificial intelligence or similar algorithmic systems to provide functions for an online housing platformOnline housing platform"Online housing platform" shall mean any website, application, or digital service that facilitates the advertisement and/or listing of housing accommodations for rent and/or sale within the state.Real Prop. Law § 440(10), other than acting as a virtual agentVirtual agent"Virtual agent" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.Real Prop. Law § 440(7), including but not limited to, captioning services and displaying housing-related advertisements to users of such online housing platformOnline housing platform"Online housing platform" shall mean any website, application, or digital service that facilitates the advertisement and/or listing of housing accommodations for rent and/or sale within the state.Real Prop. Law § 440(10).
(9) "Disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial evaluation conducted by an independent auditor. Such disparate impact analysis shall include, but not be limited to, testing of the extent to which use of an automated decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under this article. A disparate impact analysis conducted for a virtual agent shall analyze (i) whether such virtual agent's actual or predicted output differs based on one or more of an individual user's characteristics protected by the human rights law under article fifteen of the executive law, (ii) whether such differentiation is necessary to achieve one or more substantial, legitimate, and nondiscriminatory interests, and (iii) whether such interests could not be served by another practice that has a less discriminatory effect.Real Prop. Law § 440(9)" means an impartial evaluation conducted by an independent auditor. Such disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial evaluation conducted by an independent auditor. Such disparate impact analysis shall include, but not be limited to, testing of the extent to which use of an automated decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under this article. A disparate impact analysis conducted for a virtual agent shall analyze (i) whether such virtual agent's actual or predicted output differs based on one or more of an individual user's characteristics protected by the human rights law under article fifteen of the executive law, (ii) whether such differentiation is necessary to achieve one or more substantial, legitimate, and nondiscriminatory interests, and (iii) whether such interests could not be served by another practice that has a less discriminatory effect.Real Prop. Law § 440(9) shall include, but not be limited to, testing of the extent to which use of an automated decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under this article. A disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial evaluation conducted by an independent auditor. Such disparate impact analysis shall include, but not be limited to, testing of the extent to which use of an automated decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under this article. A disparate impact analysis conducted for a virtual agent shall analyze (i) whether such virtual agent's actual or predicted output differs based on one or more of an individual user's characteristics protected by the human rights law under article fifteen of the executive law, (ii) whether such differentiation is necessary to achieve one or more substantial, legitimate, and nondiscriminatory interests, and (iii) whether such interests could not be served by another practice that has a less discriminatory effect.Real Prop. Law § 440(9) conducted for a virtual agentVirtual agent"Virtual agent" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.Real Prop. Law § 440(7) shall analyze (i) whether such virtual agentVirtual agent"Virtual agent" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.Real Prop. Law § 440(7)'s actual or predicted output differs based on one or more of an individual user's characteristics protected by the human rights law under article fifteen of the executive law, (ii) whether such differentiation is necessary to achieve one or more substantial, legitimate, and nondiscriminatory interests, and (iii) whether such interests could not be served by another practice that has a less discriminatory effect.
(10) "Online housing platformOnline housing platform"Online housing platform" shall mean any website, application, or digital service that facilitates the advertisement and/or listing of housing accommodations for rent and/or sale within the state.Real Prop. Law § 440(10)" shall mean any website, application, or digital service that facilitates the advertisement and/or listing of housing accommodations for rent and/or sale within the state.
Section 1 of the bill amends Real Property Law § 440 by adding four new defined terms that frame the scope of the substantive obligations in § 442-m. Virtual agent is defined broadly to cover any autonomous AI system that interacts with housing seekers — from chatbots and recommendation engines to virtual tour narrators and application assistants. AI tools is a residual category covering AI functions on online housing platforms other than virtual agents, such as captioning and ad delivery. Disparate impact analysis requires an independent auditor to evaluate whether an automated tool produces adverse impacts across protected classes, with a three-part test for virtual agents modeled on traditional disparate impact doctrine. Online housing platform covers any website, app, or digital service listing housing for rent or sale in New York.
(1) 1 No less than annually, any real estate brokerReal estate brokerReal estate broker as used in this bill refers to any real estate broker that uses virtual agents to assist with searches for available properties for sale or rental properties, or that uses AI tools.Real Prop. Law § 442-m or online housing platformOnline housing platform"Online housing platform" shall mean any website, application, or digital service that facilitates the advertisement and/or listing of housing accommodations for rent and/or sale within the state.Real Prop. Law § 440(10) that uses virtual agentsVirtual agent"Virtual agent" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.Real Prop. Law § 440(7) to assist with searches for available properties for sale or rental properties, and any online housing platformOnline housing platform"Online housing platform" shall mean any website, application, or digital service that facilitates the advertisement and/or listing of housing accommodations for rent and/or sale within the state.Real Prop. Law § 440(10) that uses AI tools, shall have a disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial evaluation conducted by an independent auditor. Such disparate impact analysis shall include, but not be limited to, testing of the extent to which use of an automated decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under this article. A disparate impact analysis conducted for a virtual agent shall analyze (i) whether such virtual agent's actual or predicted output differs based on one or more of an individual user's characteristics protected by the human rights law under article fifteen of the executive law, (ii) whether such differentiation is necessary to achieve one or more substantial, legitimate, and nondiscriminatory interests, and (iii) whether such interests could not be served by another practice that has a less discriminatory effect.Real Prop. Law § 440(9) conducted and shall submit a summary of the most recent disparate impact analysisDisparate impact analysis"Disparate impact analysis" means an impartial evaluation conducted by an independent auditor. Such disparate impact analysis shall include, but not be limited to, testing of the extent to which use of an automated decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race, ethnicity, or other protected class under this article. A disparate impact analysis conducted for a virtual agent shall analyze (i) whether such virtual agent's actual or predicted output differs based on one or more of an individual user's characteristics protected by the human rights law under article fifteen of the executive law, (ii) whether such differentiation is necessary to achieve one or more substantial, legitimate, and nondiscriminatory interests, and (iii) whether such interests could not be served by another practice that has a less discriminatory effect.Real Prop. Law § 440(9) to the attorney general's office.
Subdivision 1 imposes the bill's core audit and reporting obligation: any real estate broker or online housing platform using virtual agents, and any online housing platform using AI tools, must have an independent disparate impact analysis conducted at least annually. The analysis must follow the three-part test defined in § 440(9) — differential output, business necessity, and less discriminatory alternative. The entity must submit a summary of the most recent analysis to the attorney general's office.
This obligation combines two distinct compliance duties — conducting the audit and submitting its summary — into a single annual cycle. The requirement for an independent auditor means internal self-assessment is insufficient.
(2)(a) 2 proactively identify discriminatory algorithmic results and modify such virtual agentsVirtual agent"Virtual agent" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.Real Prop. Law § 440(7) or AI tools to adopt less discriminatory alternatives, including but not limited to, assessing data used to train such virtual agentsVirtual agent"Virtual agent" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.Real Prop. Law § 440(7) or AI tools and verifying that use of such data does not predict discriminatory outcomes;
(2)(b) 3 ensure that the artificial intelligence or other computational or algorithmic systems upon which such virtual agentsVirtual agent"Virtual agent" means an autonomous computational system that utilizes artificial intelligence or similar algorithmic systems to interact with users seeking properties for sale or rental properties to facilitate their search, including but not limited to answering questions, acting as chatbots, providing property information, offering recommendations, guiding users through properties via audio and visual experiences including virtual tours and narrated walkthroughs, scheduling viewings, and assisting with rental housing applications.Real Prop. Law § 440(7) or AI tools are structured are similarly predictive across groups on the basis of sex, race, ethnicity or other protected classes, and make adjustments to correct any identified disparities in predictiveness for any such groups; and
(2)(c) 4 conduct regular end-to-end testing of advertising, captioning, and chatbot systems to ensure that any discriminatory outcomes are detected, including but not limited to, comparing the delivery of advertisements across different demographic audiences.
Subdivision 2 applies to any real estate broker or online housing platform that offers or uses virtual agents or AI tools. It imposes three ongoing operational obligations: (a) proactively identifying and correcting discriminatory algorithmic results, including assessment of training data; (b) ensuring predictive parity across protected-class groups and correcting identified disparities; and (c) conducting regular end-to-end testing of advertising, captioning, and chatbot systems to detect discriminatory outcomes, including cross-demographic ad delivery comparison.
These obligations go beyond the annual disparate impact analysis in subdivision 1 — they are continuous operational requirements embedded in the design and maintenance of the AI systems, not periodic audits.
(3)(a) 5 ensure that housing-related advertisements or captioning are conducted in separate generative processes and have a specialized interface designed to avoid discrimination in audience selection and/or advertisement delivery;
(3)(b) 6 avoid providing targeted options for housing-related advertisements or captioning that directly describes or relates to characteristics protected under New York state law relating to housing, or any substantially similar characteristics, individually or in combination;
(3)(c) 7 ensure that delivery of advertisements and captioning systems do not result in differential charges to customers across groups on the basis of sex, race, ethnicity or other protected classes, or charge more to advertisers to deliver advertisements that are compliant with this paragraph; and
(3)(d) 8 document, retain, and provide public-facing reporting on such real estate brokerReal estate brokerReal estate broker as used in this bill refers to any real estate broker that uses virtual agents to assist with searches for available properties for sale or rental properties, or that uses AI tools.Real Prop. Law § 442-m's or online housing platformOnline housing platform"Online housing platform" shall mean any website, application, or digital service that facilitates the advertisement and/or listing of housing accommodations for rent and/or sale within the state.Real Prop. Law § 440(10)'s website, information on compliance with this subdivision, and any internal auditing methods used for such compliance.
Subdivision 3 applies only to real estate brokers and online housing platforms using AI tools (as distinct from virtual agents) and imposes four specific anti-discriminatory design and operational requirements for housing-related advertising and captioning. Paragraph (a) requires that ad and captioning generation use separate generative processes with specialized interfaces designed to avoid discrimination in audience selection and delivery. Paragraph (b) prohibits targeting options that directly relate to protected characteristics. Paragraph (c) prohibits differential pricing for ad delivery across protected groups and bars charging more for compliant ads. Paragraph (d) requires documentation, retention, and public-facing reporting of compliance with these requirements and any internal auditing methods.
These obligations reflect a Fair Housing Act lens applied to algorithmic advertising delivery — the bill effectively mandates that AI-driven ad systems in housing cannot replicate the discriminatory targeting that led to major fair housing settlements with online platforms.
This act shall take effect immediately.
Section 3 provides that the act takes effect immediately upon enactment. There is no delayed implementation period or phased rollout.