Senate Bill S2001A

2021-2022 Legislative Session

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

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Archive: Last Bill Status - In Senate Committee Judiciary Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

2021-S2001 - Details

See Assembly Version of this Bill:
A7105
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 Other Legislative Sessions:
2019-2020: S8431
2023-2024: S180, A259

2021-S2001 - 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.

2021-S2001 - Sponsor Memo

2021-S2001 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2001
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 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, 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.
              

2021-S2001A (ACTIVE) - Details

See Assembly Version of this Bill:
A7105
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 Other Legislative Sessions:
2019-2020: S8431
2023-2024: S180, A259

2021-S2001A (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.

2021-S2001A (ACTIVE) - Sponsor Memo

2021-S2001A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2001--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary  --  recommitted
   to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
   --  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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02329-06-2
              

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