New York Landlord Obligations in Notifying Residential Tenants of Flood Risk, History, and Insurance
Effective June 21, 2023, New York State Real Property Law (Section 231-B) has been amended to require landlords to disclose specific information regarding flood risk and history directly through their residential lease agreements. The statute covers residential leases, encompassing cooperative apartments, condominiums, and rental buildings. Additionally, landlords must include a notice in the lease about the availability of flood insurance through the Federal Emergency Management Agency (FEMA). The law affects all residential leases, and notice can be provided through an attached rider. Existing leases should be updated to include this information and notice to ensure compliance with the law.
This change in law aims at tenant safety as New York continues to face increased challenges related to flooding caused by geographic location, urban infrastructure, and the impact of climate change. Transparency and notice empower tenants with critical information to make informed decisions about safety. It will likely affect where tenants choose to rent and how they prepare when extreme weather events are predicted.
Section 231-B requires landlords to provide notice of the following:
1. Whether any or all of the Leased Premises is located wholly or partially in a Federal Emergency Management Agency (“FEMA”) designated floodplain. The Federal Emergency Management Agency’s website has a Flood Map Service Center which can be found here: https://msc.fema.gov/portal/home.
2. Whether any or all of the Leased Premises is located wholly or partially in the Special Flood Hazard Area (“SFHA”, “100-year floodplain”) according to FEMA’s current Flood Insurance Rate Maps for the leased premises’ area.
3. Whether any or all of the Leased Premises is located wholly or partially in a Moderate Risk Flood Hazard Area (“500-year floodplain”) according to FEMA’s current Flood Insurance Rate Maps for the leased premises’ area.
4. Whether the leased premises has experienced flood damage due to a natural flood event, such as heavy rainfall, coastal storm surge, tidal inundation, or river overflow, which is detailed as follows (attach addendum if needed)
Mandatory Notice of Flood Insurance
Flood insurance is generally available to renters through the Federal Emergency Management Agency’s (FEMA’s) National Flood Insurance Program (NFIP) to cover your personal property and contents in the event of a flood. Contact FEMA for rates. A standard renter’s insurance policy does not typically cover flood damage. You are encouraged to examine your policy to determine whether you are covered.
Penalties to Landlords Who Fail to Disclose
There is no explicit statutory remedy imposing a penalty or fine if landlords do not provide notice of the above stated items. However, there is speculation that landlords could be liable in civil court for actual flood related damages when they fail to provide notice of the above stated items. Sellers who have similar flood disclosure requirements under New York Real Property Law (Section 462(2)) effective March 20, 2024, will be liable for willful failure to perform the requirements on this law and actual damages suffered by the buyer in addition to existing equitable or statutory remedies.