Bill > A06696

This bill amends the New York General Obligations Law regarding security deposits held by landlords in interest-bearing bank accounts. Currently, landlords can retain a small percentage of the interest earned as an administrative expense, but this bill increases that allowance from one percent to twenty percent of the interest earned per year. Specifically, the bill changes the language to allow landlords to receive up to twenty percent of the interest generated by a tenant's security deposit annually, while still limiting the total administrative expense to no more than one percent of the deposited security money. The bill mandates that the remaining interest must either be held in trust or paid annually to the tenant who made the original security deposit. The amendment provides landlords with a slightly more generous provision for covering administrative costs associated with managing security deposits, while still protecting tenants' interests by limiting the amount that can be retained. The changes will take effect on the first day of January following the bill's passage into law.

Justice

https://www.nysenate.gov/legislation/bills/2025/A6696