S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5963
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 20, 2019
                                ___________
 
 Introduced by M. of A. BARNWELL -- read once and referred to the Commit-
   tee on Judiciary
 
 AN  ACT  to  amend the general obligations law, in relation to requiring
   landlords to return security deposits within a reasonable time
 
   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.  NO  SECURITY  DEPOSIT  FOR  A  DWELLING SHALL EXCEED MORE THAN ONE
 MONTH'S RENT.
   3. A MONTH PRIOR TO THE EXPIRATION OF THE LEASE,  THE  LANDLORD  SHALL
 NOTIFY ALL TENANTS THAT THEY HAVE THE OPTION TO CONDUCT A PRE-EXIT WALK-
 THROUGH  WITH THE LANDLORD TO DOCUMENT ANY AND ALL DAMAGES, AS WELL AS A
 POST-EXIT WALK-THROUGH WITH THE LANDLORD TO DOCUMENT ANY DAMAGES  CAUSED
 WHILE  MOVING OUT THAT MAY IMPACT THE VALUE OF THE SECURITY DEPOSIT. THE
 POST-EXIT WALK-THROUGH CANNOT BE AFTER THE LAST DAY OF THE LEASE.
   4. A LANDLORD SHALL, WITHIN TWENTY-ONE DAYS OF THE END OF  THE  LEASE,
 RETURN  TO THE TENANT THE FULL SECURITY DEPOSIT AND ANY ACCRUED INTEREST
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07299-01-9

 A. 5963                             2
 
 TO WHICH THE TENANT IS ENTITLED LESS ANY AMOUNT RETAINED BY THE LANDLORD
 UNDER SUBDIVISION FIVE OF THIS SECTION.
   5.  (A)  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.
   (B) (I) 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 SUCH PORTION  OF  THE
 SECURITY  DEPOSIT  WITHIN  TWENTY-ONE  CALENDAR  DAYS  AFTER  THE  LEASE
 EXPIRED.
   (II) THE WRITTEN STATEMENT SHALL  INCLUDE  PHOTOGRAPHIC  DOCUMENTATION
 FOR  ALL  REASONS  FOR  RETENTION REGARDING DAMAGES BY THE TENANT TO THE
 DWELLING AND A DETAILED ITEMIZED RECEIPT OF REPAIR FOR SUCH DAMAGE.  THE
 ITEMIZED  RECEIPT  SHALL INCLUDE PROOF OF THE COST FOR THE REPAIR OF ANY
 LISTED DAMAGE ON SAID RECEIPT.  THE ITEMIZED RECEIPT SHALL ALSO  INCLUDE
 PROOF OF THE PAYMENT IN FULL BY THE LANDLORD FOR THE COST OF THE REPAIR.
 IF  THE  LANDLORD OR LANDLORD'S EMPLOYEE DID NOT DO THE REPAIR WORK, THE
 LANDLORD SHALL PROVIDE THE TENANT A COPY OF THE PAID BILL, PAID INVOICE,
 OR RECEIPT SHOWING PAYMENT IN FULL, SUPPLIED BY  THE  PERSON  OR  ENTITY
 PERFORMING THE WORK.  THE ITEMIZED RECEIPT SHALL PROVIDE THE TENANT WITH
 THE  NAME,  ADDRESS,  AND  TELEPHONE  NUMBER OF THE PERSON OR ENTITY WHO
 PERFORMED THE REPAIR WORK. IF THE LANDLORD AND/OR HIS  OR  HER  EMPLOYEE
 PERFORMED  THE  REPAIR  WORK,  THE  ITEMIZED  RECEIPT  SHALL  REASONABLY
 DESCRIBE THE WORK PERFORMED AND ANY HOURLY RATE CHARGED FOR THE LANDLORD
 AND ANY EMPLOYEE.
   (C) WHEN THE STATEMENT IS DELIVERED, IT SHALL BE SIGNED BY  THE  LAND-
 LORD ATTESTING TO THE ACCURACY OF THE STATEMENT. ALL TENANTS WHOSE SECU-
 RITY  DEPOSIT  IS  BEING  RETAINED  SHALL SIGN THE WRITTEN STATEMENT AND
 RETURN A SIGNED COPY TO THE LANDLORD IF THE TENANT AGREES TO THE ACCURA-
 CY OF THE STATEMENT.
   (D) WHEN THE STATEMENT IS SIGNED BY THE TENANT  AND  RETURNED  TO  THE
 LANDLORD, THE LANDLORD SHALL RETURN TO THE TENANT THEIR SECURITY DEPOSIT
 AND ANY ACCRUED INTEREST TO WHICH THE TENANT IS ENTITLED LESS ANY AMOUNT
 RETAINED  BY  THE  LANDLORD  UNDER  THIS SUBDIVISION AS AGREED TO IN THE
 STATEMENT SIGNED BY THE TENANT.
   (E) IF THE TENANT DOES NOT BELIEVE THE STATEMENT IS ACCURATE AND  THUS
 DOES NOT SIGN, THE STATEMENT WAS NOT SIGNED BY THE LANDLORD, THE REMAIN-
 DER  OF  THE SECURITY DEPOSIT IS NOT RETURNED WITHIN TWENTY-ONE CALENDAR
 DAYS AFTER THE LEASE EXPIRED, OR REPAIRS CANNOT REASONABLY BE  COMPLETED
 WITHIN  TWENTY-ONE CALENDAR DAYS AFTER THE LEASE EXPIRED, THE TENANT MAY
 INVOKE THE USE OF THE NEW YORK STATE ATTORNEY GENERAL'S MEDIATION  PROC-
 ESS  AND, IF THE MEDIATION PROCESS FAILS OR IS NOT USED, BRING AN ACTION
 IN SMALL CLAIMS COURT.
   6. 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 ATTORNEYS' FEES, COURT COSTS, AND THE LAST TWO
 MONTHS' RENT PAID BY THE TENANT. 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. THIS SECTION SHALL NOT LIMIT ANY OTHER PENALTIES  THE  LANDLORD
 COULD BE SUBJECTED TO.

 A. 5963                             3
 
   7.  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.
   8.  ANY  LANDLORD  FOUND  IN VIOLATION OF THIS SECTION SHALL HAVE EACH
 INFRACTION REPORTED TO THE DEPARTMENT OF HOMES  AND  COMMUNITY  RENEWAL,
 WHO  SHALL  COMPILE A LIST OF LANDLORDS WHO HAVE VIOLATED THE PROVISIONS
 OF THIS SECTION INCLUDING, BUT NOT LIMITED  TO,  WHICH  PROVISIONS  WERE
 VIOLATED.  THE DEPARTMENT OF HOMES AND COMMUNITY RENEWAL SHALL POST SUCH
 LIST  ON  THEIR  WEBSITE, AND SUCH INFORMATION CAN BE REQUESTED IN PAPER
 FORMAT BY MEMBERS OF THE PUBLIC.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.