Bill > H1112

This bill establishes a process for tenants to withhold rent when landlords fail to address serious code violations that endanger health and safety. Specifically, it allows banks to create special two-party escrow accounts for rent payments, requiring the signatures of both the tenant and landlord to access the funds, with provisions for bank fees and handling of inactive accounts. The bill also amends existing law to outline the conditions under which a tenant can use such an escrow account as a defense or counterclaim in housing court, requiring official certification of code violations, written notice to the landlord, and a reasonable time for repairs, while also specifying that the premises must not be a hotel or short-term lodging and that the tenant is not responsible for the damage. Crucially, tenants must prove that all withheld rent has been deposited into a court-approved account, an attorney's escrow account, or the new bank escrow account, with exceptions for documented out-of-pocket expenses and a reduced deposit requirement for tenants receiving rental assistance.