A10963 Summary:

COSPNSRCrespo, Hevesi, Rosenthal D, Lentol, Espinal, Cook
Add §7-104, Gen Ob L
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.
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A10963 Actions:

05/29/2018referred to judiciary
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A10963 Committee Votes:

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A10963 Floor Votes:

There are no votes for this bill in this legislative session.
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A10963 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                      May 29, 2018
        Introduced by M. of A. BARNWELL -- read once and referred to the Commit-
          tee 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.

        A. 10963                            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. 10963                            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.
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