Requires landlords to return the full security deposit and any accrued interest to which the tenant is entitled less any amount retained by the landlord within 21 days of the end of the lease.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9871
SPONSOR: Tapia TITLE OF BILL:
An act to amend the general obligations law, in relation to requiring
landlords to return security deposits within a reasonable time
PURPOSE:
To ensure that all tenants have a concrete timeline regarding the return
of their security deposit, and to. prevent unjust prolonged retention of
the tenant(s)' deposit by their landlord(s).
SUMMARY OF PROVISIONS:
Rental security deposits must be returned within a reasonable time peri-
od.
Reasonable time period is defined as 21 days after the lease expires
After 21 days without the return of such deposit, if applicable, the
tenant can bring the dispute to the Attorney General's mediation proc-
ess, or bring the landlord(s) to small claims court.
Sets the maximum amount of rent that can be asked for a rental dwelling
security deposit at two months rent.
If deductions are made against the deposit for repairs, the bill
requires the landlord provide proof of payment for such work.
Mandates photographic evidence for such damage of premises that resulted
in the security deposit funds being reduced.
Describes the various punishments that a landlord is subject to if they
willfully and without reason withhold a tenant's security deposit.
The bill establishes a registry that will detail infractions by land-
lords, and mandates that this information be public via the New York,
State Department of Homes and Community Renewal's website.
JUSTIFICATION:
Currently, there is no mandate that requires security deposits be
returned in a defined period, of time. The closest approximation offered
by the NYS Attorney General is that such be returned within a, "reason-
able amount of time." The definition of reasonable is not statutory
defined. By defining the reasonable time period to be within 21 days of
the lease-end date, we canpromote the prompt return of a tenant's money,
if warranted. The bill also offers protections to tenants to make sure
that if a landlord deducts money from the security deposit, it is docu-
mented. By creating an avenue (the mediation process/small claims court)
for a tenant's redress, we can help make sure that the tenant has
adequate protections to obtain any money that the landlord:is illegally
holding onto.
LEGISLATIVE HISTORY:
2017-18: S.9000/A.10963 (Barnwell) - Referred to Rules
2019-20: S.2159 - Referred to Judiciary
2021-22: S.1683 - Referred to Judiciary
FISCAL IMPACT:
None.
EFFECTIVE DATE:
This bill shall become effective sixty days after it becomes law.
STATE OF NEW YORK
________________________________________________________________________
9871
IN ASSEMBLY
April 24, 2024
___________
Introduced by M. of A. TAPIA -- read once and referred to the Committee
on Judiciary
AN ACT to amend the general obligations law, in relation to requiring
landlords to return security deposits within a reasonable time
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general obligations law is amended by adding a new
2 section 7-104 to read as follows:
3 § 7-104. Money deposited or advanced for use or rental of any dwell-
4 ing; retention. 1. Definitions. For the purpose of this section:
5 (a) The term "security deposit" shall mean any advance or deposit of
6 money that is subject to the provisions of section 7-103 of this title,
7 and the primary function of which is to secure the performance of a
8 rental agreement for the use or rental of any dwelling or any part ther-
9 eof.
10 (b) The term "landlord" shall mean any person who receives payment
11 from a tenant for the rental or use of any dwelling or any portion ther-
12 eof and has received a security deposit in connection with such rental.
13 (c) The term "tenant" shall mean any person who occupies any dwelling
14 or any portion thereof for which he or she pays rent and who, in
15 connection with such rental, has furnished a security deposit.
16 2. No security deposit for a dwelling shall exceed more than two
17 months' rent.
18 3. A month prior to the expiration of the lease, the landlord shall
19 notify all tenants that they have the option to conduct a pre-exit walk-
20 through with the landlord to document any and all damages, as well as a
21 post-exit walk-through with the landlord to document any damages caused
22 while moving out that may impact the value of the security deposit. The
23 post-exit walk-through cannot be after the last day of the lease.
24 4. A landlord shall, within twenty-one days of the end of the lease,
25 return to the tenant the full security deposit and any accrued interest
26 to which the tenant is entitled less any amount retained by the landlord
27 under subdivision five of this section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02810-01-3
A. 9871 2
1 5. (a) A landlord may retain all or a part of a security deposit for
2 nonpayment of rent, use and occupancy, unjustifiable abandonment of the
3 premises prior to the expiration of the lease term, nonpayment of utili-
4 ty charges, repair work or cleaning contracted by the tenant or damages
5 caused by the tenant to the premises.
6 (b) (i) In the event that the landlord retains any portion of the
7 security deposit, he or she shall provide the tenant with a written
8 statement listing the reasons for the retention of such portion of the
9 security deposit within twenty-one calendar days after the lease
10 expired.
11 (ii) The written statement shall include photographic documentation
12 for all reasons for retention regarding damages by the tenant to the
13 dwelling and a detailed itemized receipt of repair for such damage. The
14 itemized receipt shall include proof of the cost for the repair of any
15 listed damage on said receipt. The itemized receipt shall also include
16 proof of the payment in full by the landlord for the cost of the repair.
17 If the landlord or landlord's employee did not do the repair work, the
18 landlord shall provide the tenant a copy of the paid bill, paid invoice,
19 or receipt showing payment in full, supplied by the person or entity
20 performing the work. The itemized receipt shall provide the tenant with
21 the name, address, and telephone number of the person or entity who
22 performed the repair work. If the landlord and/or his or her employee
23 performed the repair work, the itemized receipt shall reasonably
24 describe the work performed and any hourly rate charged for the landlord
25 and any employee.
26 (c) When the statement is delivered, it shall be signed by the land-
27 lord attesting to the accuracy of the statement. All tenants whose secu-
28 rity deposit is being retained shall sign the written statement and
29 return a signed copy to the landlord if the tenant agrees to the accura-
30 cy of the statement.
31 (d) When the statement is signed by the tenant and returned to the
32 landlord, the landlord shall return to the tenant their security deposit
33 and any accrued interest to which the tenant is entitled less any amount
34 retained by the landlord under this subdivision as agreed to in the
35 statement signed by the tenant.
36 (e) If the tenant does not believe the statement is accurate and thus
37 does not sign, the statement was not signed by the landlord, the remain-
38 der of the security deposit is not returned within twenty-one calendar
39 days after the lease expired, or repairs cannot reasonably be completed
40 within twenty-one calendar days after the lease expired, the tenant may
41 invoke the use of the New York state attorney general's mediation proc-
42 ess and, if the mediation process fails or is not used, bring an action
43 in small claims court.
44 6. The willful retention of a security deposit in violation of this
45 section shall render a landlord liable for treble the amount of that
46 portion of the security deposit wrongfully withheld from the tenant,
47 together with reasonable attorneys' fees, court costs, and the last two
48 months' rent paid by the tenant. In any action brought by a tenant under
49 this section, the landlord shall bear the burden of proving that his or
50 her withholding of the security deposit or any portion thereof was not
51 willful. This section shall not limit any other penalties the landlord
52 could be subjected to.
53 7. Any provision of a contract or agreement whereby a person who so
54 deposits or advances money waives any provision of this section is abso-
55 lutely void.
A. 9871 3
1 8. Any landlord found in violation of this section shall have each
2 refraction reported to the department of homes and community renewal,
3 who shall compile a list of landlords who have violated the provisions
4 of this section including, but not limited to, which provisions were
5 violated. The department of homes and community renewal shall post such
6 list on their website, and such information can be requested in paper
7 format by members of the public.
8 § 2. This act shall take effect on the sixtieth day after it shall
9 have become a law.
