Bill Text: NY S04785 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to establishing the New York state emergency rent supplement program; requires the commissioner of housing and community renewal to establish a program to hold security deposits and create a dispute resolution process regarding the withholding of security deposits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S04785 Detail]

Download: New_York-2021-S04785-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4785

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 12, 2021
                                       ___________

        Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development

        AN ACT to amend the public housing law, the general obligations law, and
          the  state finance law, in relation to establishing the New York state
          emergency rent supplement program

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision  1 of section 14 of the public housing law is
     2  amended by adding a new paragraph (x) to read as follows:
     3    (x) administer the New York state emergency  rent  supplement  program
     4  pursuant to section 7-103 of the general obligations law.
     5    § 2. Section 7-103 of the general obligations law, as amended by chap-
     6  ter 1009 of the laws of 1970, subdivisions 2 and 2-a as amended by chap-
     7  ter 402 of the laws of 1979, is amended to read as follows:
     8    § 7-103. Money deposited or advanced for use or rental of real proper-
     9  ty; [waiver void; administration expenses] New York state emergency rent
    10  supplement program. 1. [Whenever money shall be deposited or advanced on
    11  a  contract  or license agreement for the use or rental of real property
    12  as security for performance of  the  contract  or  agreement  or  to  be
    13  applied  to  payments  upon  such  contract  or agreement when due, such
    14  money, with interest accruing  thereon,  if  any,  until  repaid  or  so
    15  applied, shall continue to be the money of the person making such depos-
    16  it  or  advance  and shall be held in trust by the person with whom such
    17  deposit or advance shall be made and  shall  not  be  mingled  with  the
    18  personal moneys or become an asset of the person receiving the same, but
    19  may  be disposed of as provided in section 7-105 of this chapter.] There
    20  shall be established  within  the  division  of  housing  and  community
    21  renewal a New York state emergency rent supplement program.
    22    2. [Whenever the person receiving money so deposited or advanced shall
    23  deposit such money in a banking organization, such person shall thereup-
    24  on notify in writing each of the persons making such security deposit or
    25  advance,  giving  the  name  and  address of the banking organization in
    26  which the deposit of security money is made,  and  the  amount  of  such

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07381-01-1
        S. 4785                             2

     1  deposit.  Deposits  in a banking organization pursuant to the provisions
     2  of this subdivision shall be made in a  banking  organization  having  a
     3  place  of business within the state. If the person depositing such secu-
     4  rity  money  in a banking organization shall deposit same in an interest
     5  bearing account, he shall be  entitled  to  receive,  as  administration
     6  expenses,  a  sum equivalent to one per cent per annum upon the security
     7  money so deposited, which shall be in lieu of all  other  administrative
     8  and  custodial expenses. The balance of the interest paid by the banking
     9  organization shall be the money of the  person  making  the  deposit  or
    10  advance  and  shall either be held in trust by the person with whom such
    11  deposit or advance shall be made, until repaid or applied for the use or
    12  rental of the leased premises, or annually paid to the person making the
    13  deposit of security money.
    14    2-a. Whenever the money so deposited or advanced is for the rental  of
    15  property  containing  six  or  more  family  dwelling  units, the person
    16  receiving such money shall, subject to the provisions of  this  section,
    17  deposit  it  in  an  interest  bearing account in a banking organization
    18  within the state which account shall earn interest at a rate which shall
    19  be the prevailing rate earned by other such deposits made  with  banking
    20  organizations in such area.
    21    2-b.  In the event that a lease terminates other than at the time that
    22  a banking organization in such area regularly pays interest, the  person
    23  depositing  such security money shall pay over to his tenant such inter-
    24  est as he is able to collect at the date  of  such  lease  termination.]
    25  Such program shall:
    26    (a)  include  a system where tenant security deposits or advances on a
    27  contract or agreement for the use or rental of real property are held by
    28  a third-party custodian and arbiter, with interest accruing thereon;
    29    (b) require landlords to place a tenant's security deposit or  advance
    30  in such system if a security deposit or advance is received;
    31    (c) include a process for returning the security deposit or advance to
    32  the  tenant,  including  a  method for tenants to transfer the remaining
    33  balance of their security deposit to apply to a new lease agreement;
    34    (d) require that if a landlord wishes to withhold such security depos-
    35  it or advance, the landlord shall make  an  agreement  with  the  tenant
    36  specifying  the  amount of money to be withheld and the reasons for such
    37  withholding;
    38    (e) establish a dispute resolution service for  disagreements  arising
    39  over  the withholding of a security deposit or advance to be provided at
    40  no cost to the landlord and tenant;
    41    (f) require that both parties agree prior to using the dispute  resol-
    42  ution service that the decision of such service is binding; and
    43    (g)  include  any  other  regulations  as  determined necessary by the
    44  commissioner of housing and community renewal.
    45    2-a. Any person who violates the requirement  specified  in  paragraph
    46  (b) of subdivision two of this section shall be punished by a civil fine
    47  of up to fifteen percent of the annual rent under such contract.
    48    3.  Any provision of such a contract or agreement whereby a person who
    49  so deposits or advances money waives any provision of  this  section  is
    50  absolutely void.
    51    4. The term "real property" as used in this section is co-extensive in
    52  meaning with lands, tenements and hereditaments.
    53    §  3.  The public housing law is amended by adding a new section 223-c
    54  to read as follows:
    55    § 223-c. New York state emergency  rent  supplement  program.  1.  The
    56  division  shall  establish  a  fund  to  be known as the tenant security
        S. 4785                             3

     1  deposit fund for the purposes of operating  and  administering  the  New
     2  York  state emergency rent supplement program.  Monies of the fund shall
     3  be kept separate from and shall not be commingled with any other  monies
     4  of  the  division.  The fund shall consist of all monies received by the
     5  division pursuant to section 7-103 of the general  obligations  law  and
     6  funds  appropriated  from  the  tenant security deposit fund established
     7  pursuant to section ninety-nine-ii of the state finance law.
     8    2. Notwithstanding any other provision of law  to  the  contrary,  the
     9  division shall provide an emergency rent supplement to eligible individ-
    10  uals and families in accordance with this section.
    11    3.  (a)  The  division  shall  provide an emergency rent supplement to
    12  eligible tenants as defined in subdivision four of this section  in  one
    13  month  intervals  for up to three months over a thirty-six month period.
    14  The emergency rent supplement shall be issued by the  division  directly
    15  to the landlord or vendor.
    16    (b)  A  tenant shall receive no more than three emergency rent supple-
    17  ments over a period of thirty-six months, regardless of the premises for
    18  which such supplement is provided.  Supplements  shall  be  provided  on
    19  behalf  of  tenants  and  shall not be based upon the premises which the
    20  tenant is leasing.
    21    4. A tenant shall be eligible to receive an emergency rent  supplement
    22  if:
    23    (a)  the  tenant's  household is at or below sixty percent of the area
    24  median income based on the family household size as  calculated  by  the
    25  United States department of housing and urban development in order to be
    26  eligible for an emergency rent supplement;
    27    (b) the tenant provides proof of at least ninety days employment;
    28    (c)  the  tenant provides proof of need as determined by the division.
    29  For the purposes of this section, proof of need includes, but  need  not
    30  be limited to, need due to outstanding medical bills, domestic violence,
    31  notice  of  late  rental  payment,  delayed  payment  due to job status,
    32  student loans, and medical leave from work.   Proof  of  need  does  not
    33  include need due to loss of a job.
    34    § 4. The state finance law is amended by adding a new section 99-ii to
    35  read as follows:
    36    §  99-ii.  Tenant security deposit fund. 1. Establishment of the fund.
    37  There is  hereby  established in the joint custody of  the  state  comp-
    38  troller  and the commissioner of housing and community renewal a special
    39  fund to be known as the tenant security deposit   fund. Moneys  in  this
    40  account  shall be kept separate and not commingled with any other moneys
    41  in the custody of the comptroller.
    42    2. Sources of funds. The sources of funds shall consist of all  moneys
    43  deposited  pursuant  to  section  7-103  of the general obligations law.
    44  Moneys of the fund shall be invested in United  States  treasury  bonds.
    45  Any  interest  received by the comptroller on moneys on deposit shall be
    46  retained and become part of the fund, unless otherwise directed by law.
    47    3. Uses of funds. Moneys of the fund shall be available  for  distrib-
    48  ution  to  the  New  York state emergency rent supplement program estab-
    49  lished pursuant to section two  hundred  twenty-three-c  of  the  public
    50  housing law.
    51    §  5.    This  act  shall take effect on the one hundred twentieth day
    52  after it shall have become a law. Effective immediately,  the  addition,
    53  amendment  and/or  repeal  of  any  rule or regulation necessary for the
    54  implementation of this act on its effective date are  authorized  to  be
    55  made and completed on or before such effective date.