N.Y. Comp. Codes R. & Regs. tit. 9 § 2505.4

Current through Register Vol. 46, No. 19, May 8, 2024

Section 2505.4 - Security deposits

Regardless of any contract, agreement, lease or other obligation heretofore or hereafter entered into, no person shall demand, receive or retain a security deposit for or in connection with the use or occupancy of housing accommodations, which exceeds the rent for one month in addition to the authorized collection of rent; provided, however, that where a lease in effect on December 1, 1983 validly required a greater security deposit, such requirement may continue in effect during the term of such lease and any renewals thereof with the same tenant. However, no owner shall demand, receive or retain a security deposit or advance payment for or in connection with the use or occupancy of a housing accommodation by any tenant who is 65 years of age or older, which exceeds the rent for one month for any lease or lease renewal entered into after July 1, 1996. Such security deposits shall be subject to the following conditions:

(a) the security deposit shall be deposited in an interest-bearing account in a banking organization;

(b) the person depositing such security deposit shall be entitled to receive, as administrative expenses, a sum equivalent to one percent per annum upon the security money so deposited;

(c) at the tenant's option, the balance of the interest paid by the banking organization shall be applied for the rental of the housing accommodation, or held in trust until repaid, or annually paid to the tenant; and

(d) the owner otherwise complies with the provisions of article 7 of the General Obligations Law.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 2505.4