N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1727-4.10

Current through Register Vol. 46, No. 45, November 2, 2024

Section 1727-4.10 - Security deposits

(a) A rental housing company may require tenants to pay a security deposit in advance as a condition of occupancy to insure faithful compliance with the terms of the lease and the rules and regulations.

(b) Security deposits shall be placed in separate interest-bearing accounts. Such money, with interest accruing thereon, shall continue to be the money of the tenant making such deposit and shall be held in trust for them by the housing company and not mingled with other funds.

(c) The tenant shall be notified in writing of the name and address of the bank in which the security deposit is being held and the amount of the security deposit.

(d) The security deposit plus interest which has accrued since the date of the previous annual payment but less any deductions for rent due, loss or damage to property, or other charges, shall be returned to the tenant as soon as possible after the apartment is vacated. (See Appendix S-8, infra, Exhibit 34.)

(e) The housing company shall be entitled to receive, for administration expenses, the sum of one percent per annum of the security money so deposited. The balance of the interest credited by the banking organization shall be annually paid to the person making the deposit of security money.

N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1727-4.10