What's happening
This bill requires New York landlords to return security deposits within 21 days, limits deposits to two months' rent, and imposes penalties for violations.
Why it matters
Greater transparency and accountability. The bill requires landlords to provide tenants with detailed, itemized statements (including photos and proof of payment) when withholding any portion of a security deposit for damages. This aims to reduce disputes and ensure landlords can’t withhold funds arbitrarily.
Stronger tenant protections and recourse. Tenants can use the New York Attorney General’s mediation process or pursue small claims court if they disagree with the landlord’s deductions, empowering tenants to challenge unfair practices.
Severe penalties for violations. Landlords who willfully violate these rules face treble damages, attorney fees, court costs, and repayment of two months’ rent, which creates a strong deterrent against wrongful withholding of deposits.
Public accountability through a violator registry. Landlords found in violation will be listed publicly by the Department of Homes and Community Renewal, which may influence landlord behavior and give tenants a resource to check landlord histories before renting.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Require Prompt Security Deposit Returns
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2159
2019-2020 Regular Sessions
IN SENATE
January 23, 2019
Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed 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 Assembly, do enact as follows:
Section 1. The general obligations law is amended by adding a new section 7-104 to read as follows:
§ 7-104. Money deposited or advanced for use or rental of any dwelling; retention. 1. Definitions. For the purpose of this section:
(a) The term "security deposit" shall mean any advance or deposit of money that is subject to the provisions of section 7-103 of this title, and the primary function of which is to secure the performance of a rental agreement for the use or rental of any dwelling or any part thereof.
(b) The term "landlord" shall mean any person who receives payment from a tenant for the rental or use of any dwelling or any portion thereof and has received a security deposit in connection with such rental.
(c) The term "tenant" shall mean any person who occupies any dwelling or any portion thereof for which he or she pays rent and who, in connection with such rental, has furnished a security deposit.
2. No security deposit for a dwelling shall exceed more than two months' rent.
3. A month prior to the expiration of the lease, the landlord shall notify all tenants that they have the option to conduct a pre-exit walkthrough with the landlord to document any and all damages, as well as a post-exit walk-through with the landlord to document any damages caused while moving out that may impact the value of the security deposit. The post-exit walk-through cannot be after the last day of the lease.
4. A landlord shall, within twenty-one days of the end of the lease, return to the tenant the full security deposit and any accrued interest
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02204-01-9
S. 2159 2
to which the tenant is entitled less any amount retained by the landlord under subdivision five of this section.
5. (a) A landlord may retain all or a part of a security deposit for nonpayment of rent, use and occupancy, unjustifiable abandonment of the premises prior to the expiration of the lease term, nonpayment of utility charges, repair work or cleaning contracted by the tenant or damages caused by the tenant to the premises.
(b) (i) In the event that the landlord retains any portion of the security deposit, he or she shall provide the tenant with a written statement listing the reasons for the retention of such portion of the security deposit within twenty-one calendar days after the lease expired.
(ii) The written statement shall include photographic documentation for all reasons for retention regarding damages by the tenant to the dwelling and a detailed itemized receipt of repair for such damage. The itemized receipt shall include proof of the cost for the repair of any listed damage on said receipt. The itemized receipt shall also include proof of the payment in full by the landlord for the cost of the repair. If the landlord or landlord's employee did not do the repair work, the landlord shall provide the tenant a copy of the paid bill, paid invoice, or receipt showing payment in full, supplied by the person or entity performing the work. The itemized receipt shall provide the tenant with the name, address, and telephone number of the person or entity who performed the repair work. If the landlord and/or his or her employee performed the repair work, the itemized receipt shall reasonably describe the work performed and any hourly rate charged for the landlord and any employee.
(c) When the statement is delivered, it shall be signed by the landlord attesting to the accuracy of the statement. All tenants whose security deposit is being retained shall sign the written statement and return a signed copy to the landlord if the tenant agrees to the accuracy of the statement.
(d) When the statement is signed by the tenant and returned to the landlord, the landlord shall return to the tenant their security deposit and any accrued interest to which the tenant is entitled less any amount retained by the landlord under this subdivision as agreed to in the statement signed by the tenant.
(e) If the tenant does not believe the statement is accurate and thus does not sign, the statement was not signed by the landlord, the remainder of the security deposit is not returned within twenty-one calendar days after the lease expired, or repairs cannot reasonably be completed within twenty-one calendar days after the lease expired, the tenant may invoke the use of the New York state attorney general's mediation process and, if the mediation process fails or is not used, bring an action in small claims court.
6. The willful retention of a security deposit in violation of this section shall render a landlord liable for treble the amount of that portion of the security deposit wrongfully withheld from the tenant, together with reasonable attorneys' fees, court costs, and the last two months' rent paid by the tenant. In any action brought by a tenant under this section, the landlord shall bear the burden of proving that his or her withholding of the security deposit or any portion thereof was not willful. This section shall not limit any other penalties the landlord could be subjected to.
S. 2159 3
7. Any provision of a contract or agreement whereby a person who so deposits or advances money waives any provision of this section is absolutely void.
8. Any landlord found in violation of this section shall have each refraction reported to the department of homes and community renewal, who shall compile a list of landlords who have violated the provisions of this section including, but not limited to, which provisions were violated. The department of homes and community renewal shall post such list on their website, and such information can be requested in paper format by members of the public.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 can promote 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 documented. 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
Fiscal impact
None.
Effective date
This bill shall become effective sixty days after it becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.