S1276-2011 Actions

• Jan 4, 2012: REFERRED TO JUDICIARY
• Jan 6, 2011: REFERRED TO JUDICIARY

S1276-2011 Memo

BILL NUMBER:S1276

TITLE OF BILL:

An act
to amend the general obligations law, in relation to the return of a
security deposit by a landlord

PURPOSE OR GENERAL IDEA OF BILL:

This bill would add a new section 7-104 to the general obligations
law, that will require a landlord who withholds all or any part of a
tenant's security deposit, to notify the tenant by written statement
listing the reasons for retention within 30 days after the surrender
and acceptance of the premises. At that time, the landlord will be
required to deliver the statement giving the reasons for retention,
along with the difference if any, between the security deposit and
the amount retained. A landlord's retention of a security deposit in
violation of this section, will make the landlord liable for treble
the amount of the security deposit wrongfully withheld from the
tenant, together with reasonable attorney fees and court costs
incurred by the tenant.

JUSTIFICATION:

This bill would provide protection of tenants from possible misuse and
unjustified retention of their security deposits by dishonest and
negligent landlords. The bill in no way affects the legitimate
ability of a landlord to retain all or part of a security deposit for
nonpayment of rent or utility charges, abandonment of premises,
damages caused by the tenant to premises, and cleaning contracted by
the tenant. However, as it now stands, some landlords make deductions
from security deposits for repairs that are never made, or overcharge
a tenant for repairs made, or charge a tenant for damages that were
preexistent. Moreover, many landlords fail to return security
deposits within a reasonable period of time. This bill will act to
eliminate these situations by imposing the burden of proof upon the
landlord when all or part of a security deposit is retained, and by
sanctioning violations with a penalty of triple the amount of any
misapplied deductions on the part of the landlord.

PRIOR LEGISLATIVE HISTORY:

2006: S.7070 (Duane), Died in Judiciary; A.9368 (Wright), Died in
Judiciary
2007: S.2311 (Duane), Died in Judiciary; A.662 (Wright), Died in
Judiciary
2008: S.2311 (Duane), Died in Judiciary; A.662 (Wright), Died in
Judiciary
2009: S.1441 (Duane), Died in Codes; A.1435 (Wright), Died in
Judiciary
2010: S.1441 (Duane), Died in Codes; A.1435 (Wright), Died in
Judiciary

FISCAL IMPLICATIONS:


None.

EFFECTIVE DATE:

The sixtieth day after it shall have become a law.

S1276-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1276
 2011-2012 Regular Sessions
 I N  SENATE
 January 6, 2011
 
 Introduced  by  Sen.  DUANE  -- 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:

 

S  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.
 LBD00956-01-1
 
       S. 1276                             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.
 

S  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.

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