AI Frontier Institute

Prohibits the collecting of information of historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners for purposes of analyzing or processing of such information using an algorithm and of recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.

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New York Senate Bill 1573, the 'New York Preventing the Algorithmic Facilitation of Rental Housing Cartels Act of 2024,' amends the Real Property Law by adding a new Section 222-a to prohibit the use of algorithmic systems to artificially inflate rental prices or reduce the supply of residential dwelling units. The bill makes it unlawful for rental property owners (those owning four or more residential units) to subscribe to or exchange value for services from a 'coordinator'—defined as any person operating software or data analytics that collects competitor pricing and supply data, processes it algorithmically, and recommends rental prices or occupancy levels back to landlords. It also prohibits coordinators from facilitating non-compete agreements among rental property owners or from acquiring other coordinators in ways that would lessen competition or create monopolies. Enforcement authority is granted to the Attorney General and the Division of Housing and Community Renewal, who may bring civil actions for injunctive relief and monetary penalties, with recovered funds deposited into the state general fund. Pre-dispute arbitration agreements and joint action waivers related to violations of this section are rendered invalid and unenforceable. The bill includes a severability clause and takes effect immediately upon passage.

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