New York S 6397: Establishes security deposit options for certain tenants

Bill Text

Bill Search and Legislative Information | New York State Assembly 

• 

• 

• 

• 

• 

• 

• 

• 

 Skip to main content 

 New York State Assembly

 Speaker Carl E. Heastie

 --> 
 --> 

 --> 

• 
 Assembly Members 

• 
 Legislative Info 

• 
 Public Hearings 

• 
 Speaker's Press 

• 
 Assembly Reports 

• 
 Committees & More 

• Bill Search Home
• Laws
• Legislative Calendar
• Public Hearing Schedule
• Assembly Calendars
• Assembly Committee Agenda 

 Javascript must be enabled to properly view this page. 

 Bill No.: 

• Summary 
• Actions 
• Committee&nbspVotes 
• Floor&nbspVotes 
• Memo 
• Text 
• LFIN 
• Chamber&nbspVideo/Transcript 
S06397 Summary:

BILL NOS06397 

&nbsp

SAME ASSAME AS A01431

&nbsp

SPONSORJACKSON

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add §238-b, RP L

&nbsp

Establishes security deposit options for certain tenants, including but not limited to, an option to pay any deposit or advance to rent or use residential real property or a dwelling unit.

Go to top S06397 Actions:

BILL NOS06397 

&nbsp

03/13/2025REFERRED TO JUDICIARY

01/07/2026REFERRED TO JUDICIARY

Go to topS06397 Committee&nbspVotes:

Go to topS06397 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS06397 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 6397

 2025-2026 Regular Sessions

 IN SENATE

 March 13, 2025
 ___________

 Introduced by Sen. JACKSON -- read twice and ordered printed, and when
 printed to be committed to the Committee on Judiciary

 AN ACT to amend the real property law, in relation to establishing secu-
 rity deposit options for certain tenants

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The real property law is amended by adding a new section
 2 238-b to read as follows:
 3 § 238-b. Security deposit. 1. A landlord who requires a security
 4 deposit to be paid by a tenant which is covered by the provisions of
 5 sections 7-107 and 7-108 of the general obligations law shall also be
 6 required to offer to accept at least one of the following options in
 7 lieu of such security deposit:
 8 a. Payment of any security deposit over a series of no less than six
 9 equal monthly installment payments, which installments shall be due on
 10 the same day as the monthly rent payment and which may be paid together
 11 with the monthly rent payment in a single transaction, absent a separate
 12 agreement between such landlord and tenant;
 13 b. Payment of a reduced security deposit which shall be no more than
 14 fifty percent of the amount of one month's rent under such contract; or
 15 c. If such tenant qualifies, payment of any deposit pursuant to 18
 16 NYCRR 352.6.
 17 2. In addition to the options in subdivision one of this section in
 18 lieu of a security deposit, a landlord may accept rental security insur-
 19 ance, defined as a surety bond or insurance policy issued by a
 20 licensed carrier in the state of New York that guarantees or indemnifies
 21 a tenant after default of a financial obligation under the rental
 22 agreement. If the landlord wishes to offer or suggest rental security
 23 insurance that is provided by itself or a separate company, the rental
 24 security insurance offered must satisfy the following criteria:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03281-01-5

 S. 6397 2

 1 a. the insurance provider is an approved carrier licensed by the
 2 department of financial services pursuant to article eleven of the
 3 insurance law;
 4 b. the coverage is effective upon the payment of the first premium or
 5 fee and remains effective for the entire lease term;
 6 c. any dispute under the coverage cannot require arbitration and waive
 7 the tenant's right to go to court;
 8 d. the amount paid by the tenant cannot exceed the amount of the
 9 coverage;
 10 e. the tenant cannot be liable to the insurance provider for any
 11 claims paid out to the landlord; and
 12 f. the coverage provided per claim is no less than the amount such
 13 landlord requires for security deposits.
 14 3. A tenant who elects to provide rental security insurance, pursuant
 15 to paragraph a of subdivision one of this section, in lieu of a required
 16 security deposit shall not be required to provide additional security or
 17 insurance coverage per claim in an amount greater than the amount
 18 required for the security deposit.
 19 4. Such landlord shall not impose any additional fees or interest on a
 20 tenant that pays their security deposit in an alternate manner pursuant
 21 to subdivision one of this section.
 22 5. Any agreement to pay a security deposit in installments shall be
 23 included within such contract, lease or agreement and shall specify the
 24 total deposit amount due and the amount due for each installment.
 25 6. Prior to entering into a contrac