Senate Bill S5156

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5156
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 23, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the general obligations law, in relation to  the  return
   of a security deposit by a landlord
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  The general obligations law is amended  by  adding  a  new
 section 7-104 to read as follows:
   §  7-104.  MONEY DEPOSITED OR ADVANCED FOR USE OR RENTAL OF ANY DWELL-
 ING; RETENTION.  1.  DEFINITIONS. FOR THE PURPOSE OF THIS SECTION:
   (A)  THE TERM "SECURITY DEPOSIT" SHALL MEAN ANY ADVANCE OR DEPOSIT  OF
 MONEY  THAT IS SUBJECT TO THE PROVISIONS OF SECTION 7-103 OF THIS TITLE,
 AND THE PRIMARY FUNCTION OF WHICH IS TO  SECURE  THE  PERFORMANCE  OF  A
 RENTAL AGREEMENT FOR THE USE OR RENTAL OF ANY DWELLING OR ANY PART THER-
 EOF.
   (B)    THE  TERM "LANDLORD" SHALL MEAN ANY PERSON WHO RECEIVES PAYMENT
 FROM A TENANT FOR THE RENTAL OR USE OF ANY DWELLING OR ANY PORTION THER-
 EOF AND HAS RECEIVED A SECURITY DEPOSIT IN CONNECTION WITH SUCH RENTAL.
   (C)  THE TERM "TENANT" SHALL MEAN ANY PERSON WHO OCCUPIES ANY DWELLING
 OR ANY PORTION THEREOF FOR WHICH  HE  OR  SHE  PAYS  RENT  AND  WHO,  IN
 CONNECTION WITH SUCH RENTAL, HAS FURNISHED A SECURITY DEPOSIT.
   2.   A LANDLORD SHALL, WITHIN THIRTY DAYS AFTER THE TENANT VACATES THE
 DWELLING RETURN TO THE TENANT THE FULL SECURITY DEPOSIT AND ANY  ACCRUED
 INTEREST TO WHICH THE TENANT IS ENTITLED.
   3.  A  LANDLORD  MAY  RETAIN  ALL  OR A PART OF A SECURITY DEPOSIT FOR
 NONPAYMENT OF RENT, USE AND OCCUPANCY, UNJUSTIFIABLE ABANDONMENT OF  THE
 PREMISES PRIOR TO THE EXPIRATION OF THE LEASE TERM, NONPAYMENT OF UTILI-
 TY  CHARGES, REPAIR WORK OR CLEANING CONTRACTED BY THE TENANT OR DAMAGES
 CAUSED BY THE TENANT TO THE PREMISES. IN THE  EVENT  THAT  THE  LANDLORD
 RETAINS ANY PORTION OF THE SECURITY DEPOSIT, HE OR SHE SHALL PROVIDE THE
 TENANT WITH A WRITTEN STATEMENT LISTING THE REASONS FOR THE RETENTION OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04574-01-3
              

 S. 5156                             2
 
 SUCH PORTION OF THE SECURITY DEPOSIT. WHEN THE STATEMENT IS DELIVERED IT
 SHALL BE ACCOMPANIED BY PAYMENT OF THE DIFFERENCE BETWEEN ANY SUM DEPOS-
 ITED  AND  THE  AMOUNT  RETAINED.  THE  LANDLORD SHALL BE DEEMED TO HAVE
 COMPLIED  WITH  THIS  SECTION  BY  MAILING THE STATEMENT AND ANY PAYMENT
 REQUIRED TO THE TENANT'S NEW ADDRESS, IF KNOWN BY THE  LANDLORD,  OR  TO
 THE LAST KNOWN ADDRESS OF THE TENANT.
   4.  THE  WILLFUL  RETENTION OF A SECURITY DEPOSIT IN VIOLATION OF THIS
 SECTION SHALL RENDER A LANDLORD LIABLE FOR TREBLE  THE  AMOUNT  OF  THAT
 PORTION  OF  THE  SECURITY  DEPOSIT WRONGFULLY WITHHELD FROM THE TENANT,
 TOGETHER WITH REASONABLE ATTORNEY'S FEES AND COURT COSTS. IN ANY  ACTION
 BROUGHT  BY  A  TENANT  UNDER  THIS SECTION, THE LANDLORD SHALL BEAR THE
 BURDEN OF PROVING THAT HIS OR HER WITHHOLDING OF THE SECURITY DEPOSIT OR
 ANY PORTION THEREOF WAS NOT WILLFUL.
   5.  ANY PROVISION OF A CONTRACT OR AGREEMENT WHEREBY A PERSON  WHO  SO
 DEPOSITS OR ADVANCES MONEY WAIVES ANY PROVISION OF THIS SECTION IS ABSO-
 LUTELY VOID.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.