New York · Senate Bill · 2023-2024 Regular Sessions
SB7735
New York Senate Bill 7735-A — An Act to amend the real property law, in relation to the use of automated decision tools to make housing decisions

Status ● Failed Effective N/A Passage Likelihood H

WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Attorney General enforcement. The AG may initiate an investigation upon a preponderance of evidence establishing suspicion of a violation. The AG may also bring an action in any court of competent jurisdiction for correction of any violation, including mandating compliance or other appropriate relief. No private right of action is created.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
The statute does not specify monetary penalties. The Attorney General may seek court-ordered compliance, injunctive relief, or such other relief as may be appropriate.

What This Bill Requires

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.

Statutory Text
Analysis & Obligations
Real Prop. Law § 227-g(1)
Definitions

(1)(a) "Automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a)" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisionsHousing decision"Housing decision" means to screen applicants for housing.Real Prop. Law § 227-g(1)(c) that impact natural persons. "Automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a)" 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.

(1)(b) "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 shall differentiate between applicants who were selected and applicants who were not selected by the tool.Real Prop. Law § 227-g(1)(b)" 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 shall differentiate between applicants who were selected and applicants who were not selected by the tool.Real Prop. Law § 227-g(1)(b) shall include, but not be limited to, testing of the extent to which use of an automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) 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 shall differentiate between applicants who were selected and applicants who were not selected by the tool.Real Prop. Law § 227-g(1)(b) shall differentiate between applicants who were selected and applicants who were not selected by the tool.

(1)(c) "Housing decisionHousing decision"Housing decision" means to screen applicants for housing.Real Prop. Law § 227-g(1)(c)" means to screen applicants for housing.

Subdivision 1 establishes the three operative definitions for the section. Automated decision tool is defined broadly to cover any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues a score, classification, or recommendation used to substantially assist or replace discretionary housing decisions affecting natural persons. A carve-out excludes tools that do not automate or materially impact decision making, such as junk email filters, firewalls, and spreadsheets. Disparate impact analysis requires an impartial evaluation by an independent auditor testing for adverse impact across protected classes, differentiating between selected and non-selected applicants. Housing decision is narrowly defined as screening applicants for housing.

Real Prop. Law § 227-g(2)
Annual disparate impact analysis and public disclosure
Deployer

(2)(a) 1 No less than annually, 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 shall differentiate between applicants who were selected and applicants who were not selected by the tool.Real Prop. Law § 227-g(1)(b) shall be conducted to assess the actual impact of any automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) used by any landlordLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g to select applicants for housing within the state. 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 shall differentiate between applicants who were selected and applicants who were not selected by the tool.Real Prop. Law § 227-g(1)(b) shall be provided to the landlordLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g.

(2)(b) 2 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 landlordLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g 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 landlordLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g intends to use an automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) to screen applicants for housing.

Subdivision 2 conditions a landlord's lawful use of an automated decision tool on compliance with two linked requirements. First, the landlord must ensure that an independent disparate impact analysis is conducted no less than annually to assess the tool's actual impact on applicants across protected classes; the analysis must be provided to the landlord. Second, before implementing or using the tool, the landlord must make a summary of the most recent analysis — along with the distribution date of the tool — publicly available on the landlord's website and through any digital platform listing where the landlord intends to use the tool for applicant screening.

Compliance actions 2 items
1
LandlordsLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g must obtain at least annually 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 shall differentiate between applicants who were selected and applicants who were not selected by the tool.Real Prop. Law § 227-g(1)(b) conducted by an independent auditor assessing the actual impact of the automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) across protected classes (sex, race, ethnicity, and other protected classes), differentiating between selected and non-selected applicants.
H-02.6
2
LandlordsLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g must publish 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 shall differentiate between applicants who were selected and applicants who were not selected by the tool.Real Prop. Law § 227-g(1)(b) and the distribution date of the tool on the landlordLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g's website and through any digital housing listing platform before implementing or using the automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) to screen applicants.
H-02.5
Real Prop. Law § 227-g(3)
Applicant notification and alternative process
Deployer

(3)(a)(i)–(iv) 3 Any landlordLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g that uses an automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) to screen applicants for housing shall notify each such applicant of the following: (i) That an automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) will be used in connection with the assessment or evaluation of such applicant; (ii) The characteristics that such automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) will use in the assessment of such applicant; (iii) Information about the type of data collected for such automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a), the source of such data, and the landlordLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g's data retention policy; and (iv) If an application for housing is denied through use of the automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a), the reason for such denial.

(3)(b) 4 The notice required by paragraph (a) of this subdivision shall be made no less than twenty-four hours before the use of such automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) and shall allow such applicant to request an alternative selection process or accommodation.

Subdivision 3 imposes four specific notice requirements on landlords using automated decision tools to screen housing applicants and a timing constraint that structures when and how notice must be given. The landlord must inform each applicant that an automated decision tool will be used, disclose the characteristics the tool evaluates, provide information about the type and source of data collected and the landlord's data retention policy, and — if the application is denied through the tool — explain the reason for denial. All notice must be provided at least 24 hours before the tool is used, and the notice must allow the applicant to request an alternative selection process or accommodation.

Compliance actions 2 items
3
LandlordsLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g must notify each housing applicant (1) that an automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) will be used to assess the applicant, (2) the characteristics the tool will evaluate, (3) the type and source of data collected and the landlordLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g's data retention policy, and (4) if the application is denied, the reason for the denial.
H-01.1
4
LandlordsLandlordThe bill does not independently define "landlord"; the term carries its existing meaning under New York Real Property Law as the person or entity that owns or controls the rental property and uses an automated decision tool to screen housing applicants.Real Prop. Law § 227-g must provide the required applicant notice at least 24 hours before the automated decision toolAutomated decision tool"Automated decision tool" means any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making housing decisions that impact natural persons. "Automated decision 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.Real Prop. Law § 227-g(1)(a) is used and must allow the applicant to request an alternative selection process or accommodation.
H-01.3
Real Prop. Law § 227-g(4)
Attorney General enforcement

(4) The attorney general may initiate an investigation if a preponderance of the evidence, including the 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 shall differentiate between applicants who were selected and applicants who were not selected by the tool.Real Prop. Law § 227-g(1)(b) 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.

Subdivision 4 vests enforcement authority exclusively in the Attorney General. The AG may initiate an investigation when a preponderance of the evidence — including the publicly available disparate impact analysis summary — establishes a suspicion of a violation. The AG may also bring an action in any court of competent jurisdiction seeking compliance, injunctive relief, or other appropriate remedies. The statute does not create a private right of action or specify monetary penalties.

§ 2
Effective date

This act shall take effect immediately.

Section 2 provides that the act takes effect immediately upon enactment.

Passage Likelihood

Failed
Status Failed
Final action PRINT NUMBER 7735A

Legislative History

2023-11-03 REFERRED TO RULES
2024-01-03 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
2024-04-02 AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
2024-04-02 PRINT NUMBER 7735A

Entry Last Reviewed

2026-05-20
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