Bill > S06397

This bill establishes new requirements for landlords regarding security deposit options for tenants, mandating that landlords who require a security deposit must offer at least three alternative payment methods: (1) the ability to pay the security deposit in six or more equal monthly installments, (2) the option to pay a reduced security deposit of no more than 50% of one month's rent, or (3) payment through a social services grant program for qualifying tenants. Additionally, landlords may accept rental security insurance from a licensed New York carrier, subject to specific criteria, such as ensuring the insurance coverage is effective for the entire lease term, does not require arbitration, and cannot exceed the required security deposit amount. The bill requires landlords to provide written notice to tenants about these security deposit alternatives before entering a lease agreement, and specifies that tenants cannot be charged additional fees or interest for choosing an alternative payment method. Importantly, the bill considers these provisions as part of source of income protections, meaning violations could be subject to existing legal penalties under executive law.

Justice

https://www.nysenate.gov/legislation/bills/2025/S6397