S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7105--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 22, 2021
                                ___________
 
 Introduced  by  M.  of  A.  GONZALEZ-ROJAS,  FERNANDEZ  -- read once and
   referred to the Committee on Housing -- recommitted to  the  Committee
   on  Housing  in  accordance  with Assembly Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to amend the executive law, in relation to the  requirements  for
   filing a complaint with the Division of Human Rights
 
   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
 SECTIONS  7-107  AND  7-108 OF THE GENERAL OBLIGATIONS LAW SHALL ALSO BE
 REQUIRED TO OFFER TO ACCEPT AT LEAST ONE OF  THE  FOLLOWING  OPTIONS  IN
 LIEU OF SUCH SECURITY DEPOSIT:
   A.  PAYMENT  OF ANY SECURITY DEPOSIT OVER A SERIES OF NO LESS THAN SIX
 EQUAL MONTHLY INSTALLMENT 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;
   B. 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
   C.  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.
   2.  IN  ADDITION  TO THE OPTIONS IN SUBDIVISION ONE OF THIS SECTION IN
 LIEU OF A SECURITY DEPOSIT, A LANDLORD MAY ACCEPT RENTAL SECURITY INSUR-
 ANCE, DEFINED AS A SURETY BOND   OR   INSURANCE  POLICY    ISSUED  BY  A
 LICENSED CARRIER IN THE STATE OF NEW YORK THAT GUARANTEES OR INDEMNIFIES
 A  TENANT  AFTER  DEFAULT OF A   FINANCIAL   OBLIGATION UNDER THE RENTAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02329-08-2
              

 A. 7105--A                          2
 
 AGREEMENT. IF THE LANDLORD WISHES TO OFFER OR  SUGGEST  RENTAL  SECURITY
 INSURANCE  THAT  IS PROVIDED BY ITSELF OR A SEPARATE COMPANY, THE RENTAL
 SECURITY INSURANCE OFFERED MUST SATISFY THE FOLLOWING CRITERIA:
   A.  THE   INSURANCE  PROVIDER  IS  AN APPROVED CARRIER LICENSED BY THE
 DEPARTMENT OF FINANCIAL SERVICES  PURSUANT  TO  ARTICLE  ELEVEN  OF  THE
 INSURANCE LAW;
   B. THE  COVERAGE IS EFFECTIVE UPON THE PAYMENT OF THE FIRST PREMIUM OR
 FEE AND REMAINS EFFECTIVE FOR THE ENTIRE LEASE TERM;
   C. ANY DISPUTE UNDER THE COVERAGE CANNOT REQUIRE ARBITRATION AND WAIVE
 THE TENANT'S RIGHT TO GO TO COURT;
   D.  THE  AMOUNT  PAID  BY  THE  TENANT CANNOT EXCEED THE AMOUNT OF THE
 COVERAGE;
   E. THE TENANT CANNOT BE LIABLE  TO  THE  INSURANCE  PROVIDER  FOR  ANY
 CLAIMS PAID OUT TO THE LANDLORD; AND
   F.  THE  COVERAGE  PROVIDED PER CLAIM IS NO LESS THAN THE AMOUNT  SUCH
 LANDLORD REQUIRES FOR SECURITY DEPOSITS.
   3. A TENANT WHO ELECTS TO PROVIDE RENTAL SECURITY INSURANCE,  PURSUANT
 TO PARAGRAPH A OF SUBDIVISION ONE OF THIS SECTION, IN LIEU OF A REQUIRED
 SECURITY DEPOSIT SHALL NOT BE REQUIRED TO PROVIDE ADDITIONAL SECURITY OR
 INSURANCE  COVERAGE  PER  CLAIM  IN  AN  AMOUNT  GREATER THAN THE AMOUNT
 REQUIRED FOR THE SECURITY DEPOSIT.
   4. SUCH LANDLORD SHALL NOT IMPOSE ANY ADDITIONAL FEES OR INTEREST ON A
 TENANT THAT PAYS THEIR SECURITY DEPOSIT IN AN ALTERNATE MANNER  PURSUANT
 TO SUBDIVISION ONE OF THIS SECTION.
   5.  ANY  AGREEMENT  TO PAY A SECURITY DEPOSIT IN INSTALLMENTS SHALL BE
 INCLUDED WITHIN SUCH CONTRACT, LEASE OR AGREEMENT AND SHALL SPECIFY  THE
 TOTAL DEPOSIT AMOUNT DUE AND THE AMOUNT DUE FOR EACH INSTALLMENT.
   6.  PRIOR  TO  ENTERING  INTO  A CONTRACT, LEASE OR RENTAL AGREEMENT A
 LANDLORD SHALL PROVIDE THE TENANT WRITTEN NOTICE OF THE AVAILABLE  SECU-
 RITY  DEPOSIT  ALTERNATIVES  AND  INCLUDE  THE FOLLOWING LANGUAGE: "IF A
 SECURITY DEPOSIT IS REQUIRED, TENANT HAS THE RIGHT TO REQUEST AND  LAND-
 LORD IS REQUIRED TO ACCEPT ONE OF THE FOLLOWING THREE ALTERNATIVES: A. A
 DEPOSIT  PAID  OVER  NO  LESS  THAN SIX EQUAL MONTHLY INSTALLMENTS; B. A
 ONE-TIME REDUCED SECURITY DEPOSIT PAYMENT OF NO MORE THAN FIFTY  PERCENT
 OF  THE  MONTHLY  RENTAL RATE CHARGED FOR THE RENTAL UNIT; OR C. IF SUCH
 TENANT QUALIFIES, A DEPOSIT PAID THROUGH THE SECURITY DEPOSIT  GUARANTEE
 PROGRAM.  TENANT SHALL NOT BE REQUIRED TO PROVIDE RENTAL SECURITY INSUR-
 ANCE COVERAGE PER CLAIM IN AN AMOUNT GREATER THAN  THE  AMOUNT  REQUIRED
 FOR THE SECURITY DEPOSIT".
   7.  THE  REQUIREMENTS  OF  THIS  SECTION SHALL BE CONSIDERED SOURCE OF
 INCOME AS DEFINED BY SUBDIVISION THIRTY-SIX OF SECTION TWO HUNDRED NINE-
 TY-TWO OF THE EXECUTIVE LAW AND ANY VIOLATION OF THIS SECTION MAY  BE  A
 VIOLATION OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW.
   § 2. The public housing law is amended by adding a new section 14-a to
 read as follows:
   § 14-A. THE SECURITY DEPOSIT GUARANTEE PROGRAM. 1. (A) THE COMMISSION-
 ER  SHALL  ESTABLISH  WITHIN  AVAILABLE APPROPRIATIONS, AND ADMINISTER A
 SECURITY DEPOSIT GUARANTEE PROGRAM FOR ANY PERSON WHO:
   (I) (A) IS A  RECIPIENT  OF:  THE  SUPPLEMENTAL  NUTRITION  ASSISTANCE
 PROGRAM  PURSUANT  TO  SECTION  NINETY-FIVE  OF THE SOCIAL SERVICES LAW,
 SAFETY NET ASSISTANCE PURSUANT TO TITLE THREE OF  ARTICLE  FIVE  OF  THE
 SOCIAL  SERVICES  LAW,  OR  ANY OTHER QUALIFYING FEDERAL OR STATE PUBLIC
 ASSISTANCE PROGRAM AS DETERMINED BY THE COMMISSIONER;
   (B) HAS A DOCUMENTED SHOWING OF FINANCIAL NEED; AND
   (II)(A) IS RESIDING IN AN EMERGENCY SHELTER OR HOMELESS HOUSING ESTAB-
 LISHED UNDER ARTICLE TWO-A OF THE SOCIAL SERVICES LAW; OR
 A. 7105--A                          3
 
   (B) HAVE A CERTIFICATION, VOUCHER OR ALLOWANCE FROM THE PUBLIC ASSIST-
 ANCE SHELTER ALLOWANCE ESTABLISHED BY SECTION ONE  HUNDRED  THIRTY-ONE-A
 OF  THE  SOCIAL  SERVICES  LAW,  THE  FEDERAL  SECTION 8 HOUSING VOUCHER
 PROGRAM OR THE SECTION 8 HOUSING CERTIFICATE PROGRAM (42 U.S.C. 1437  ET
 SEQ.).
   (B) THE COMMISSIONER SHALL PROVIDE SECURITY DEPOSIT GUARANTEES FOR USE
 BY  SUCH  PERSONS  IN  LIEU  OF A SECURITY DEPOSIT ON RESIDENTIAL RENTAL
 PROPERTY OR RENTAL DWELLING UNIT.
   (C) ELIGIBLE PERSONS SHALL RECEIVE A SECURITY DEPOSIT GUARANTEE IN  AN
 AMOUNT NOT TO EXCEED THE EQUIVALENT OF ONE MONTH'S RENT ON SUCH RESIDEN-
 TIAL RENTAL PROPERTY OR RENTAL DWELLING UNIT.
   (D) NO PERSON SHALL APPLY FOR AND RECEIVE A SECURITY DEPOSIT GUARANTEE
 MORE THAN ONCE IN ANY EIGHTEEN-MONTH PERIOD WITHOUT THE EXPRESS AUTHORI-
 ZATION  OF  THE  COMMISSIONER,  EXCEPT AS PROVIDED IN SUBDIVISION TWO OF
 THIS SECTION.
   2. (A) IN THE CASE OF A PERSON WHO  QUALIFIES  FOR  A  GUARANTEE,  THE
 COMMISSIONER  OR  ANY  LOCAL OR REGIONAL NONPROFIT CORPORATION OR SOCIAL
 SERVICE ORGANIZATION UNDER CONTRACT WITH THE  DIVISION  OF  HOUSING  AND
 COMMUNITY RENEWAL TO ASSIST IN THE ADMINISTRATION OF THE SECURITY DEPOS-
 IT  PROGRAM  ESTABLISHED  PURSUANT  TO  SUBDIVISION ONE OF THIS SECTION,
 SHALL EXECUTE A WRITTEN AGREEMENT TO PAY THE LANDLORD  FOR  ANY  DAMAGES
 SUFFERED BY THE LANDLORD DUE TO THE TENANT'S FAILURE TO COMPLY WITH SUCH
 TENANT'S  OBLIGATIONS  PURSUANT TO THE CONTRACT FOR USE OR RENTAL OF THE
 RESIDENTIAL RENTAL PROPERTY OR RENTAL DWELLING UNIT, PROVIDED THE AMOUNT
 OF ANY SUCH PAYMENT SHALL NOT EXCEED THE AMOUNT OF THE REQUESTED SECURI-
 TY DEPOSIT AND THAT THE LANDLORD COMPLIES WITH SECTIONS 7-107 AND  7-108
 OF THE GENERAL OBLIGATIONS LAW.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
 IF  A  PERSON WHO HAS PREVIOUSLY RECEIVED A GRANT FOR A SECURITY DEPOSIT
 OR A SECURITY DEPOSIT GUARANTEE BECOMES ELIGIBLE FOR A SUBSEQUENT  SECU-
 RITY  DEPOSIT  GUARANTEE  WITHIN  EIGHTEEN MONTHS AFTER A CLAIM HAS BEEN
 PAID ON A PRIOR SECURITY DEPOSIT GUARANTEE, SUCH PERSON  MAY  RECEIVE  A
 SECURITY DEPOSIT GUARANTEE. THE AMOUNT OF THE SUBSEQUENT SECURITY DEPOS-
 IT  GUARANTEE  FOR  WHICH SUCH PERSON WOULD OTHERWISE HAVE BEEN ELIGIBLE
 SHALL BE REDUCED BY ANY AMOUNT OF A PREVIOUS GRANT WHICH  HAS  NOT  BEEN
 RETURNED  TO  THE  DEPARTMENT PURSUANT TO THIS SECTION, OR THE AMOUNT OF
 ANY PAYMENT MADE TO THE LANDLORD FOR DAMAGES PURSUANT TO THIS SECTION.
   3. A SECURITY DEPOSIT GUARANTEE OR GRANT SHALL BE CONSIDERED A  SOURCE
 OF  INCOME  AS  DEFINED BY SUBDIVISION THIRTY-SIX OF SECTION TWO HUNDRED
 NINETY-TWO OF THE EXECUTIVE LAW AND REFUSAL BY A LANDLORD  TO  ACCEPT  A
 SECURITY  DEPOSIT GUARANTEE OR GRANT SHALL BE A VIOLATION OF SECTION TWO
 HUNDRED NINETY-SIX OF THE EXECUTIVE LAW.
   4. ANY PAYMENT MADE PURSUANT TO THIS SECTION  TO  A  PERSON  RECEIVING
 ASSISTANCE  PURSUANT TO ANY FEDERAL, STATE OR LOCAL PROGRAM SHALL NOT BE
 DEDUCTED FROM THE AMOUNT OF ASSISTANCE  TO  WHICH  THE  RECIPIENT  WOULD
 OTHERWISE BE ENTITLED UNDER SUCH PROGRAM.
   5.  THE  COMMISSIONER MAY, WITHIN AVAILABLE APPROPRIATIONS, ON A CASE-
 BY-CASE BASIS, PROVIDE A SECURITY DEPOSIT GRANT TO A PERSON ELIGIBLE FOR
 THE SECURITY DEPOSIT GUARANTEE PROGRAM ESTABLISHED PURSUANT TO  SUBDIVI-
 SION  ONE  OF THIS SECTION, IN AN AMOUNT NOT TO EXCEED THE EQUIVALENT OF
 ONE MONTH'S RENT ON SUCH RESIDENTIAL RENTAL PROPERTY OR RENTAL  DWELLING
 UNIT,  PROVIDED THE COMMISSIONER DETERMINES THAT EMERGENCY CIRCUMSTANCES
 EXIST WHICH THREATEN THE HEALTH,  SAFETY  OR  WELFARE  OF  A  CHILD  WHO
 RESIDES  WITH  SUCH  PERSON.  SUCH PERSON SHALL NOT BE ELIGIBLE FOR MORE
 THAN ONE SUCH GRANT WITHOUT  THE  AUTHORIZATION  OF  SAID  COMMISSIONER.
 NOTHING  IN  THIS  SECTION SHALL PRECLUDE THE APPROVAL OF SUCH ONE-MONTH
 A. 7105--A                          4

 SECURITY DEPOSIT GRANT IN CONJUNCTION WITH A ONE-MONTH SECURITY  DEPOSIT
 GUARANTEE.
   6. NOTHING IN THIS SECTION SHALL PRECLUDE THE COMMISSIONER FROM ENTER-
 ING  INTO  A  CONTRACT WITH ONE OR MORE LOCAL OR REGIONAL NOT-FOR-PROFIT
 CORPORATIONS OR SOCIAL SERVICE ORGANIZATIONS FOR THE PURPOSE OF  ISSUING
 SECURITY DEPOSIT GUARANTEES PURSUANT TO THIS SECTION.
   7.  A  LANDLORD SHALL SUBMIT A CLAIM FOR DAMAGES NOT LATER THAN FORTY-
 FIVE DAYS AFTER THE DATE OF TERMINATION OF THE TENANCY. PAYMENT SHALL BE
 MADE ONLY FOR A CLAIM THAT INCLUDES RECEIPTS FOR REPAIRS MADE AND  PROOF
 THAT  THE LANDLORD COMPLIED WITH SECTIONS 7-107 AND 7-108 OF THE GENERAL
 OBLIGATIONS LAW. NO CLAIM SHALL BE PAID FOR A DWELLING UNIT FROM WHICH A
 TENANT VACATED BECAUSE SUBSTANDARD CONDITIONS MADE  SUCH  DWELLING  UNIT
 UNINHABITABLE,  AS  DETERMINED  BY  A LOCAL, STATE OR FEDERAL REGULATORY
 AGENCY.
   8. ANY PERSON WHO IS FOUND ELIGIBLE  TO  RECEIVE  A  SECURITY  DEPOSIT
 GUARANTEE  UNDER  THIS  SECTION AND FOR WHOM THE COMMISSIONER HAS PAID A
 CLAIM BY A LANDLORD, SHALL CONTRIBUTE FIVE PERCENT OF ONE  MONTH'S  RENT
 UNDER  SUCH CONTRACT TO THE PAYMENT OF THE SECURITY DEPOSIT. THE COMMIS-
 SIONER MAY WAIVE SUCH PAYMENT FOR GOOD CAUSE.
   9. THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS, TO  ADMIN-
 ISTER THE PROGRAM ESTABLISHED PURSUANT TO THIS SECTION AND TO SET ELIGI-
 BILITY CRITERIA FOR SUCH PROGRAM.
   §  3.  This  act shall take effect on the thirtieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.