§ 143-c. Avoidance of abuses in connection with rent security
deposits. 1. Whenever a landlord requires that he be secured against
non-payment of rent or for damages as a condition to renting a housing
accommodation to a recipient of public assistance, a local social
services official may in accordance with the regulations of the
department secure the landlord by either of the following means at the
option of the local social services official:

(a) By means of an appropriate agreement between the landlord and the
social services official, or

(b) By depositing money in an escrow account, not under the control of
the landlord or his agent, subject to the terms and conditions of an
agreement between the landlord and the social services official in such
form as the department may require or approve provided, however, that
this option shall not be used in instances where recipients reside in
public housing.

2. Except as expressly provided in subdivision three of this section,
it shall be against the public policy of the state for a social services
official to pay money to a landlord to be held as a security deposit
against the non-payment of rent or for damages by a public assistance
recipient, or to issue a grant to a recipient of public assistance
therefor.

3. When, however, in the judgment of a social services official
housing accommodations available in a particular area are insufficient
to properly accommodate recipients of public assistance in need of
housing, and in order to secure such housing it is essential that he pay
money to landlords to be held as security deposits against the
non-payment of rent or for damages by public assistance recipients, or
to issue grants to recipients of public assistance therefor, such social
services official may pay or furnish funds for such security deposits
until sufficient housing accommodations are available in the particular
area to properly accommodate recipients of public assistance in need of
housing. Social services officials shall not pay or furnish such funds
in instances where recipients reside in public housing. Landlords
receiving such security deposits shall comply with the provisions of
article seven of the general obligations law. Such cash security
deposits shall be subject to assignment to the local social services
official by the recipients of public assistance or care. Any social
services official paying or furnishing funds for security deposits in
accordance with the provisions of this subdivision shall make diligent
effort to recover such payments or funds from a recipient landlord as
allowed by law.

4. This section shall apply to federally-aided categories of public
assistance except to the extent prohibited by applicable federal laws
and regulations.

5. This section shall apply to recipients of supplemental security
income benefits or additional state payments, as defined in section
three hundred of this chapter, and such persons shall be deemed
recipients of public assistance for the purposes of this section.