NY State Senate Bill 2021-S3504

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to judiciary
Jan 29, 2021	referred to judiciary

2021-S3504 (ACTIVE) - Details

See Assembly Version of this Bill:: A440
Current Committee:: Senate Judiciary
Law Section:: General Obligations Law
Laws Affected:: Amd §7-103, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3026, A4785
2023-2024: S1773, A761

2021-S3504 (ACTIVE) - Summary

Relates to permitting lessees the option to pay security deposits in six or fewer equal installments.

2021-S3504 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3504

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to permitting
lessees the option to pay security deposits in installments

 
PURPOSE:

This bill would permit tenants entering into a residential lease the
ability to pay their security deposit in installments.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends section 7-103 of the general obligations law by
adding a new subdivision 2-c.

Section two sets forth the effective date.

JUSTIFICATION:

A security deposit is an upfront payment demanded by a landlord from a
prospective tenant to insure against any damages made to a unit by an
outgoing tenant. In theory, security deposits should be returned in full
if no damages are made, and the landlord should retain no more than the
amount necessary to cover any expenses associated with needed repairs.
In practice, security deposits are poorly regulated and the result is an
arbitrary process that usually benefits the landlord and leaves the
tenant with no formal recourse to recover lost money.

New York State residents have long struggled to find affordable housing,
especially residents living in New York City. According to a report from
the office of New York City Controller Scott Stringer, New York City
tenants spent $507 million on security deposits in 2016. Often times, a
security deposit for a residential lease can be equivalent to two
months' worth of rent payments or more, creating a serious financial
burden for New Yorkers already struggling with exorbitant housing costs.
Most landlords will require this security deposit to be paid in full
along with their first month's rent at the time of signing a lease.

A security deposit, meant to provide security to a landlord in case of
damages to a unit, should not be preventing working-class residents from
being able to obtain safe and affordable housing. This legislation would
protect tenants and ensure renting an apartment does not become an
excessive financial burden by allowing tenants to pay their security
deposits in up to six installments. Landlords under this legislation
would be prohibited from imposing any additional fees or penalties on

2021-S3504 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3504
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sen.  BAILEY -- 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  permitting
   lessees the option to pay security deposits in installments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 7-103 of the general obligations law is amended  by
 adding a new subdivision 2-c to read as follows:
   2-C.  FOR ANY DEPOSIT OR ADVANCE UNDER THIS SECTION, THE PERSON MAKING
 SUCH DEPOSIT OR ADVANCE SHALL HAVE THE OPTION TO  PAY  SUCH  DEPOSIT  OR
 ADVANCE IN INSTALLMENTS.
   (A)  SUCH  INSTALLMENTS  SHALL  BE DUE ON THE FIRST OF EACH SUBSEQUENT
 MONTH UNTIL THE DEPOSIT OR ADVANCE IS PAID IN FULL.
   (B) FOR LEASES UNDER THIS SECTION OF A TERM OF  ONE  YEAR  OR  LONGER,
 TENANTS  SHALL BE ALLOWED TO PAY NOT MORE THAN SIX CONSECUTIVE AND EQUAL
 INSTALLMENTS.
   (C) LANDLORDS SHALL NOT IMPOSE ANY ADDITIONAL FEES OR  INTEREST  ON  A
 TENANT  THAT  PAYS  HIS  OR  HER  SECURITY DEPOSIT OR ADVANCE UNDER THIS
 SUBDIVISION.
   (D) ANY AGREEMENT TO PAY A SECURITY DEPOSIT IN INSTALLMENTS  SHALL  BE
 INCLUDED  WITHIN  SUCH CONTRACT OR AGREEMENT AND SHALL SPECIFY THE TOTAL
 DEPOSIT AMOUNT DUE AND THE AMOUNT DUE FOR EACH INSTALLMENT.
   (E) THIS SUBDIVISION SHALL APPLY TO ANY DEPOSIT,  ADVANCE  OR  NON-RE-
 FUNDABLE FEE USED AS A DOWN PAYMENT FOR USE OF RENTAL PROPERTY.
   (F)  ANY  PERSON WHO VIOLATES THE PROVISIONS OF THIS SUBDIVISION SHALL
 BE PUNISHED BY A CIVIL FINE OF UP TO FIFTEEN PERCENT OF THE ANNUAL  RENT
 UNDER SUCH CONTRACT OR AGREEMENT.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00542-01-1

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Senate Bill S3504

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

2021-S3504 (ACTIVE) - Details

2021-S3504 (ACTIVE) - Summary

2021-S3504 (ACTIVE) - Sponsor Memo

2021-S3504 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3504

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Sponsored By

Jamaal T. Bailey

Archive: Last Bill Status - In Senate Committee Judiciary Committee

2021-S3504 (ACTIVE) - Details

2021-S3504 (ACTIVE) - Summary

2021-S3504 (ACTIVE) - Sponsor Memo

2021-S3504 (ACTIVE) - Bill Text download pdf

Comments