Senate Bill S2055

                                 
BILL NUMBER: S2055

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to permitting a
tenant to utilize a security deposit to pay rent during a state disaster
emergency

 
PURPOSE:

The purpose of this legislation is to allow tenants to use their securi-
ty deposit, in whole or in part, in lieu of a rental payment as a result
of the loss of a job or income during a state disaster emergency.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new subdivision 1-b to Section 7-108 of the General
Obligations Law that provides tenants may use their security deposit, in
whole or in part, in lieu of a rental payment or a portion thereof when
a tenant has lost their job or has a loss of income during a state
disaster emergency. Tenants will have the opportunity to replenish their
              

entire security deposit or the portions that were used for rental
payments within one year from the last date the security deposit was
used to make such payment. "Residential tenant" is also defined.

Section 2 is the effective date.

 
JUSTIFICATION:

Tenants in our state are facing an unprecedented crisis. Millions of New
Yorkers, gainfully employed just a few weeks ago, are facing a terrible
situation. They are out of their jobs with no paycheck in sight because
of the depth of the crisis we face.

The rent is due for many whose wallets are empty. Adding to the stress
they face from job loss is the fear that they may lose the roofs over
their heads, their home for their families. This is a crisis not of
their making, and our state has an obligation to assist them during this
time. And, given the millions of renters in our state, we also must
provide some relief for their property owners who also face financial
difficulties.

The clearest path forward is to allow tenants to use their security
deposits for rent payments during this hardship period. This bill builds
in safeguards for landlords so they will be compensated for this tempo-
rary financial pain they will suffer.

None of us anticipated a crisis of this magnitude devastating our state.
We must take dramatic steps to help save working families in distress.

 
LEGISLATIVE HISTORY:

2021-2022: S.2000 - Referred to Judiciary/A.7114 - Referred to Judiciary

2019-2020: S.8265 - Referred to Judiciary

 
STATE AND LOCAL FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any lease or
rental agreement or renewal of a lease or rental agreement entered into
on or after such date.