senate Bill S8431A

2019-2020 Legislative Session

Relates to establishing renters security insurance and the security deposit guarantee program

download bill text pdf

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Archive: Last Bill Status - In Senate Committee Judiciary Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (3)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 26, 2020 print number 8431a
Jun 26, 2020 amend and recommit to judiciary
May 29, 2020 referred to judiciary

S8431 - Details

Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §238-b, RP L; add §14-a, Pub Hous L
Versions Introduced in 2021-2022 Legislative Session:
S2001

S8431 - Summary

Establishes rental security insurance and the security deposit guarantee program to give tenants an option to pay any deposit or advance to rent or use residential real property or a dwelling unit.

S8431 - Sponsor Memo

S8431 - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8431

                            I N  S E N A T E

                              May 29, 2020
                               ___________

Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the real property law, in relation to establishing secu-
  rity deposit options for certain tenants;  and  to  amend  the  public
  housing  law, in relation to establishing the security deposit guaran-
  tee program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real property law is amended by adding a new section
238-b to read as follows:
  § 238-B. SECURITY DEPOSIT. 1.  A  LANDLORD  WHO  REQUIRES  A  SECURITY
DEPOSIT  TO  BE  PAID  BY A TENANT WHICH IS COVERED BY THE PROVISIONS OF
SECTION 7-108 OF THE GENERAL OBLIGATIONS LAW, AT  THE  REQUEST  OF  SUCH
TENANT,  SHALL  OFFER TO ACCEPT AT LEAST ONE OF THE FOLLOWING OPTIONS IN
LIEU OF SUCH SECURITY DEPOSIT:
  A. RENTAL SECURITY INSURANCE THAT SATISFIES THE FOLLOWING CRITERIA:
  (I) THE INSURANCE PROVIDER IS AN APPROVED CARRIER LICENSED BY  DEPART-
MENT  OF  FINANCIAL SERVICES PURSUANT TO ARTICLE ELEVEN OF THE INSURANCE
LAW;
  (II) THE COVERAGE IS EFFECTIVE UPON THE PAYMENT OF THE  FIRST  PREMIUM
AND REMAINS EFFECTIVE FOR THE ENTIRE LEASE TERM; AND
  (III)  THE COVERAGE PROVIDED PER CLAIM IS NO LESS THAN THE AMOUNT SUCH
LANDLORD REQUIRES FOR SECURITY DEPOSITS;
  B. PAYMENT OF ANY SECURITY DEPOSIT OVER A SERIES OF NO LESS  THAN  SIX
EQUAL  MONTHLY INSTALLMENTS PAYMENTS, WHICH INSTALLMENTS SHALL BE DUE ON
THE SAME DAY AS THE MONTHLY RENT PAYMENT AND WHICH MAY BE PAID  TOGETHER
WITH THE MONTHLY RENT PAYMENT IN A SINGLE TRANSACTION, ABSENT A SEPARATE
AGREEMENT BETWEEN SUCH LANDLORD AND TENANT;
  C.  PAYMENT  OF A REDUCED SECURITY DEPOSIT WHICH SHALL BE NO MORE THAN
FIFTY PERCENT OF THE AMOUNT OF ONE MONTH'S RENT UNDER SUCH CONTRACT; OR
  D. IF SUCH TENANT QUALIFIES, PAYMENT OF ANY DEPOSIT THROUGH THE  SECU-
RITY  DEPOSIT GUARANTEE PROGRAM ESTABLISHED BY SECTION FOURTEEN-A OF THE
PUBLIC HOUSING LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

S8431A (ACTIVE) - Details

Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §238-b, RP L; add §14-a, Pub Hous L
Versions Introduced in 2021-2022 Legislative Session:
S2001

S8431A (ACTIVE) - Summary

Establishes rental security insurance and the security deposit guarantee program to give tenants an option to pay any deposit or advance to rent or use residential real property or a dwelling unit.

S8431A (ACTIVE) - Sponsor Memo

S8431A (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8431--A

                            I N  S E N A T E

                              May 29, 2020
                               ___________

Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the real property law, in relation to establishing secu-
  rity  deposit  options  for  certain  tenants; and to amend the public
  housing law, in relation to establishing the security deposit  guaran-
  tee program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property law is amended by adding  a  new  section
238-b to read as follows:
  §  238-B.  SECURITY  DEPOSIT.  1.  A  LANDLORD WHO REQUIRES A SECURITY
DEPOSIT TO BE PAID BY A TENANT WHICH IS COVERED  BY  THE  PROVISIONS  OF
SECTION  7-108  OF  THE  GENERAL OBLIGATIONS LAW, AT THE REQUEST OF SUCH
TENANT, SHALL OFFER TO ACCEPT AT LEAST ONE OF THE FOLLOWING  OPTIONS  IN
LIEU OF SUCH SECURITY DEPOSIT:
  A.  RENTAL  SECURITY  INSURANCE, DEFINED AS A SURETY BOND OR INSURANCE
POLICY ISSUED BY A LICENSED CARRIER IN THE STATE OF NEW YORK THAT  GUAR-
ANTEES  OR  INDEMNIFIES A TENANT AFTER DEFAULT OF A FINANCIAL OBLIGATION
UNDER THE RENTAL AGREEMENT, THAT SATISFIES THE FOLLOWING CRITERIA:
  (I) THE INSURANCE PROVIDER IS AN  APPROVED  CARRIER  LICENSED  BY  THE
DEPARTMENT  OF  FINANCIAL  SERVICES  PURSUANT  TO  ARTICLE ELEVEN OF THE
INSURANCE LAW;
  (II) THE COVERAGE IS EFFECTIVE UPON THE PAYMENT OF THE  FIRST  PREMIUM
OR FEE AND REMAINS EFFECTIVE FOR THE ENTIRE LEASE TERM; AND
  (III)  THE COVERAGE PROVIDED PER CLAIM IS NO LESS THAN THE AMOUNT SUCH
LANDLORD REQUIRES FOR SECURITY DEPOSITS;
  B. PAYMENT OF ANY SECURITY DEPOSIT OVER A SERIES OF NO LESS  THAN  SIX
EQUAL  MONTHLY INSTALLMENTS PAYMENTS, WHICH INSTALLMENTS SHALL BE DUE ON
THE SAME DAY AS THE MONTHLY RENT PAYMENT AND WHICH MAY BE PAID  TOGETHER
WITH THE MONTHLY RENT PAYMENT IN A SINGLE TRANSACTION, ABSENT A SEPARATE
AGREEMENT BETWEEN SUCH LANDLORD AND TENANT;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

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