What's happening
This bill limits security deposits or advances for rental properties and manufactured home parks in New York to one month's rent.
Why it matters
Reduces upfront costs for renters. By capping security deposits and advances at one month’s rent, the bill makes moving into a new rental or manufactured home park more financially accessible, especially for lower-income tenants who may struggle with higher initial payments.
Limits landlord discretion on deposits. Landlords and park owners can no longer require multiple months’ worth of deposits or prepaid rent, which previously could be used to screen out tenants with fewer resources or less financial flexibility.
Applies to new and renewed leases. The cap will affect all rental and manufactured home park agreements entered into or renewed after the law takes effect, potentially benefiting current tenants at lease renewal as well as new renters.
May impact rental market practices. The change could influence how landlords assess tenant risk, possibly shifting focus to other criteria (like credit or income verification) or potentially affecting rent pricing or availability in competitive markets.
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Who cares
Headline styles
Cap Security Deposits at Rent
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4780
2019-2020 Regular Sessions
IN ASSEMBLY
February 5, 2019
Introduced by M. of A. MOSLEY -- read once and referred to the Committee on Judiciary
AN ACT to amend the general obligations law and the real property law, in relation to limiting the amount of a security deposit on rental property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 7-103 of the general obligations law, as amended by chapter 1009 of the laws of 1970, is amended to read as follows
1.(a) Whenever money shall be deposited or advanced on a contract or license agreement for the use or rental of real property as security for performance of the contract or agreement or to be applied to payments upon such contract or agreement when due, such money, with interest accruing thereon, if any, until repaid or so applied, shall continue to be the money of the person making such deposit or advance and shall be held in trust by the person with whom such deposit or advance shall be made and shall not be mingled with the personal moneys or become an asset of the person receiving the same, but may be disposed of as provided in section 7-105 of this chapter.
(b) No person shall require a deposit or advance, pursuant to paragraph (a) of this subdivision, in an amount greater than the equivalent of one month's rent.
§ 2. Subparagraph (a) of paragraph 4 of subdivision g of section 233 of the real property law, as amended by chapter 566 of the laws of 1996, is amended to read as follows:
(a) (i) Whenever money shall be deposited or advanced on a contract or license agreement for the use or rental of premises and the manufactured home, if rented, in a manufactured home park as security for performance of the contract or agreement or to be applied to payments upon such contract or agreement when due, such money with interest accruing there-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06994-01-9
A. 4780 2
on, if any, until repaid or so applied, shall continue to be the money of the person making such deposit or advance and shall be a trust fund in the possession of the person with whom such deposit or advance shall be made and shall not be mingled with other funds or become an asset of the park owner, operator or his agent.
(ii) No person shall require a deposit or advance, pursuant to clause (i) of this subparagraph, in an amount greater than the equivalent of one month's rent.
§ 3. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to contracts entered into or renewed on and after such effective date.
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.