N.Y. Comp. Codes R. & Regs. tit. 9 § 2525.4

Current through Register Vol. 46, No. 17, April 24, 2024

Section 2525.4 - Security deposits

Regardless of any contract, agreement, lease or other obligation heretofore or hereafter entered into, no owner, in addition to the authorized collection of rent, shall demand, receive or retain a security deposit or advance payment for or in connection with the use or occupancy of a housing accommodation which exceeds the rent for one month; provided, however, that where a greater security deposit was paid by the tenant in continuous occupancy since the date the housing accommodation became subject to the RSL, such deposit may continue in effect during the term of such lease and any renewals thereof with the same tenant. Such security deposit shall be subject to the following conditions:

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

(b) the person depositing such security money 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 § 2525.4