What's happening
This bill removes landlords' right to retain 1% of tenant security deposit interest as an administrative fee, giving all interest to tenants.
Why it matters
Increases tenant returns on security deposits. By removing the landlord’s ability to keep 1% of the security deposit’s interest as an administrative fee, tenants will now receive the full amount of interest earned on their deposits, slightly improving their financial outcome when moving out.
Reduces landlord incentives to profit from deposits. The change eliminates a small but guaranteed revenue stream for landlords, potentially discouraging the use of tenant security deposits as a source of administrative income.
Encourages fairer handling of tenant funds. This amendment may foster greater accountability and transparency in how landlords manage and disclose tenant security deposits, as there is no longer a built-in fee for handling these accounts.
Reflects growing tenant protections. The bill is part of a broader trend of strengthening tenant rights in New York, signaling to renters that the state is actively working to ensure fairer treatment and more equitable financial practices in housing.
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Who cares
Headline styles
End Landlord Admin Fees
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Enacting clause stricken
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Tenants Keep Deposit Interest
In Senate Committee · Judiciary · Sponsor Marisol Alcantara
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3838
2017-2018 Regular Sessions
IN ASSEMBLY
January 30, 2017
Introduced by M. of A. SEPULVEDA, GLICK, HOOPER, STECK -- Multi-Sponsored by -- M. of A. FAHY, GOTTFRIED, MOSLEY, PERRY, RIVERA -- read once and referred to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to tenant security deposits
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The section heading and subdivision 2 of section 7-103 of the general obligations law, the section heading as amended by chapter 1009 of the laws of 1970 and subdivision 2 as amended by chapter 402 of the laws of 1979, are amended to read as follows:
Money deposited or advanced for use or rental of real property; waiver void[; administration expenses].
2. Whenever the person receiving money so deposited or advanced shall deposit such money in a banking organization, such person shall thereupon notify in writing each of the persons making such security deposit or advance, giving the name and address of the banking organization in which the deposit of security money is made, and the amount of such deposit. Deposits in a banking organization pursuant to the provisions of this subdivision shall be made in a banking organization having a place of business within the state. If the person depositing such security money in a banking organization shall deposit same in an interest bearing account,[ he shall be entitled to receive, as administration expenses, a sum equivalent to one per cent per annum upon the security money so deposited, which shall be in lieu of all other administrative and custodial expenses. The balance of] the interest paid by the banking organization shall be the money of the person making the deposit or advance and shall either be held in trust by the person with whom such deposit or advance shall be made, until repaid or applied for the use or rental of the leased premises, or annually paid to the person making the deposit of security money.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07007-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.