A00761 Summary:

SPONSORRosenthal L (MS)
COSPNSRSimon, Jean-Pierre, Hyndman, Cruz, Colton, Darling, De Los Santos
MLTSPNSRHevesi, Manktelow, McDonough
Amd §7-103, Gen Ob L
Relates to permitting lessees the option to pay security deposits in six or fewer equal installments.
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A00761 Actions:

01/11/2023referred to judiciary
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A00761 Committee Votes:

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A00761 Floor Votes:

There are no votes for this bill in this legislative session.
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A00761 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Rosenthal L (MS)
  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. hi 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 fmancial 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 fmancial 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 tenants who elect to pay such deposit in installments.   LEGISLATIVE HISTORY: 2021-22: A.440 - Referred to Judiciary; S.3504 - Referred to Judiciary 2019-20: A.4785 - Referred to Judiciary; S.3026 - Referred to Judiciary   FISCAL IMPLICATIONS: None to the State.   EFFECTIVE DATE: This act shall take effect in 60 days
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A00761 Text:

                STATE OF NEW YORK
                               2023-2024 Regular Sessions
                   IN ASSEMBLY
                                    January 11, 2023
        Introduced  by M. of A. L. ROSENTHAL, SIMON, JEAN-PIERRE, HYNDMAN, CRUZ,
          COLTON, DARLING, DE LOS SANTOS -- Multi-Sponsored by -- M. of A. HEVE-
          SI, MANKTELOW, McDONOUGH -- read once and referred to the Committee on
        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:
     1    Section 1. Section 7-103 of the general obligations law is amended  by
     2  adding a new subdivision 2-c to read as follows:
     3    2-c.  For any deposit or advance under this section, the person making
     4  such deposit or advance shall have the option to  pay  such  deposit  or
     5  advance in installments.
     6    (a)  Such  installments  shall  be due on the first of each subsequent
     7  month until the deposit or advance is paid in full.
     8    (b) For leases under this section of a term of  one  year  or  longer,
     9  tenants  shall be allowed to pay not more than six consecutive and equal
    10  installments.
    11    (c) Landlords shall not impose any additional fees or  interest  on  a
    12  tenant  that  pays  his  or  her  security deposit or advance under this
    13  subdivision.
    14    (d) Any agreement to pay a security deposit in installments  shall  be
    15  included  within  such contract or agreement and shall specify the total
    16  deposit amount due and the amount due for each installment.
    17    (e) This subdivision shall apply to any deposit,  advance  or  non-re-
    18  fundable fee used as a down payment for use of rental property.
    19    (f)  Any  person who violates the provisions of this subdivision shall
    20  be punished by a civil fine of up to fifteen percent of the annual  rent
    21  under such contract or agreement.
    22    §  2.  This  act  shall take effect on the sixtieth day after it shall
    23  have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
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A00761 LFIN:

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A00761 Chamber Video/Transcript:

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