Prohibits the collection of administration expenses by a landlord and provides for the tenant to collect all interest paid on a security deposit or advance

BILL NUMBER:S1281

Title of bill

An act to amend the general obligations law, in relation to tenant security deposits

Purpose

Prohibits the collection of administration expenses by a landlord and provides for the tenant to collect all interest paid on a security deposit or advance.

Summary of provisions

Section 1 of the bill amends section 7-103 of the general obligations law to remove the ability of a landlord to collect administration expenses on a tenant's security deposit and allows for a tenant to collect on all interest paid on the security deposit.

Existing law

Currently a landlord is allowed to collect, as "administration expenses" a sum equivalent to one per cent per annum upon a tenant's security deposit.

Justification

It is unjust for a landlord to have the ability to take one percent of the interest compounded by a tenant's security deposit. The security deposit is the tenant's money. Therefore it is only just that the tenant be allowed to keep all of his or her interest from that deposit.

Legislative history

2007: S.3556 (Duane), Died in Judiciary 2008: S.3556 (Duane), Died in Judiciary 2009: S.3338 (Duane), Died in Judiciary 2010: S.3338 (Duane), Died in Judiciary

Fiscal implications

Minimal.

Local fiscal implications

Minimal.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become law.