S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4398
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 Introduced by M. of A. WALKER -- read once and referred 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.
              

                                                            LBD07768-01-1

 A. 4398                             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.