Politicians push to regulate security deposits
BY GABE HERMAN
City and state legislation was introduced
on Feb. 13 that would
regulate security deposits on
apartment rentals.
City Comptroller Scott Stringer released
a report last July that estimated
that New Yorkers spent more than $500
million in security deposits in 2016. It
said that many low-income residents
not in rent-regulated apartments often
pay more than the typical deposit fee of
one months’ rent, especially those with
lower credit scores.
“For these low-wage renters,” the report
said, “a security deposit of two or
three times the monthly rent is not uncommon
— further evidence that it can
be ‘expensive’ to be poor.”
The report further said that prospective
New legislation to regulate security
deposits for rental apartments
is backed up by a report by
City Comptroller Scott Stringer.
renters can also sometimes have
to pay fees for background and credit
checks, which add to the fi nancial burden.
“We know that one major reason
people can’t afford to live in New York
City is out-of-control and completely
unregulated security deposits,” Stringer
said this week in a statement. “It’s preposterous
that a landlord can demand
many months’ rent from a tenant and
there’s little recourse if they just decide
to keep it.”
State Senator Brad Holyman, who
represents much of Downtown and
Midtown Manhattan, is a co-sponsor of
the state legislation. Backers of the City
Council bills include local Councilmembers
Carlina Rivera and Keith Powers.
The proposed legislation would limit
security deposits to one month’s rent;
allow for deposits to be paid in up to
six installments instead of all at once;
and create a protection program where
a third party would hold the deposit,
make sure it is returned, and resolve
disputes between landlord and tenant.
“Unchecked security deposits are
forcing tenants to lose out and help
make our city increasingly unaffordable
for New Yorkers,” Rivera said. “Creating
a fair system where residents know
what landlords can charge them eliminates
the abuse caused by bad actors in
the real estate market.”
“When landlords ask for thousands
of dollars in upfront costs just to move
into an apartment, they are shutting
out thousands of vulnerable people
— especially those from marginalized
communities,” Hoylman said. “Capping
security deposits will eliminate one of
the major barriers that prevent tenants
from accessing safe, affordable housing
across our city.”
Stringer and the coalition of state
and city offi cials have started a survey
to hear from New Yorkers about issues
faced with security deposits. The survey
can be found at comptroller.nyc.gov/
security-deposit-survey/.
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