Bill > A01431

This bill establishes new security deposit options for tenants in New York, requiring landlords to offer at least three alternative ways to pay a security deposit: (1) paying the full deposit over six or more equal monthly installments alongside rent payments, (2) paying a reduced security deposit of no more than 50% of one month's rent, or (3) using a deposit through a social services grant program if the tenant qualifies. Additionally, landlords may accept rental security insurance from a licensed New York carrier, subject to specific criteria such as effective coverage, no mandatory arbitration, and limits on tenant liability. The bill mandates that landlords provide written notice to tenants about these deposit alternatives before signing a lease, explicitly stating the three options available. Landlords cannot impose additional fees or interest for tenants using these alternative payment methods, and the bill classifies these provisions as a source of income protection, making violations potentially subject to existing executive law anti-discrimination provisions. The act will take effect 30 days after becoming law, with immediate authorization for implementing regulations.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A1431