A.
The Village of New Paltz has a significant tenant population.
B.
Equitable landlord-tenant relations are a matter of public welfare.
C.
Prompt, reasonable return of security deposits is an important factor
in tenants being able to obtain subsequent housing.
D.
The issue of return of security deposits is a source of potential
conflict between landlords and tenants which may result in a burdensome
effect on the court system.
Whenever a tenant shall deposit with the landlord a security
deposit, such deposit, or any portion thereof, until repaid or rightfully
applied for obligations of the tenant to the landlord, shall continue
to be the money of the tenant and shall be held in trust by the landlord
with whom such deposit shall be made and shall not be mingled with
the personal moneys or become an asset of the landlord.
Whenever a tenant shall provide to the landlord a security deposit,
the landlord shall provide to the tenant a written receipt for the
security deposit and shall further inform the tenant, in writing,
of the location where the deposit is held; if the deposit is being
held in a banking organization, the name and address of the banking
organization in which the security deposit is being held; and a statement
as to whether or not the deposit is being held in an interest-bearing
account.
Upon the expiration of the Rental Agreement or the time that
a tenant surrenders possession of the residential unit, whichever
occurs later, the tenant shall have the obligation of placing the
residential unit in an overall clean condition as it was when the
tenancy commenced, excepting normal wear and tear.
A.
Within 21 days after the termination of tenancy or the surrender
of the premises, whichever occurs later, the landlord shall return
to the tenant the full security deposit deposited with the landlord
by the tenant or, if there is actual cause for retaining the security
deposit or any portion of it, the landlord shall provide to the tenant
a written statement specifying the reasons for such retention, including
a good-faith estimate of the costs to be incurred for each item of
damage or if said damage has already been repaired, documentation
(e.g. receipts, invoices) of the costs incurred for each item of damage.
The written statement specifying the reasons for the retention of
any portion of the security deposit shall be accompanied by a full
payment of the difference, if any, between the security deposit and
the amount retained. Failure to return the security deposit or provide
the aforesaid written statement within 21 days of termination of the
tenancy or surrender of the premises shall preclude the landlord from
any right to retain all or a portion of the security deposit unless
good cause is shown for said failure by landlord. Nothing contained
in this section shall preclude the landlord from retaining all or
a portion of the security deposit to cover the costs of storing and/or
disposing of unclaimed property, for nonpayment of rent and for nonpayment
of utility charges which the tenant was required to pay directly to
the landlord.
B.
If there is a provision in a rental agreement that a tenant is responsible
to reimburse or apply from a security deposit any amounts due from
any violations issued to the landlord pursuant to the New Paltz Village
Code or the New York State Uniform Fire Prevention and Building Code
(the Uniform Code) for the property or residential unit being rented
as a result of the actions of tenant or members of his/her household
or their invitees or guests, it shall be the landlord's responsibility
to give the tenant notice of that ticket in a timely fashion as a
condition to enforce that provision, and in order to help the tenant
correct and prevent the condition for which the violation was issued.
Timely notice shall be no later than three weeks from the date the
violation is sent from the Village to the landlord. Failure to provide
such notice shall serve as the landlord's waiver of reimbursement
or application of security deposit for any ticket for which notice
was not given.
C.
Nothing in this section shall be construed to imply other than it
is the landlord's responsibility to return the tenant's security deposit
or balance as soon as reasonably possible.
Absent good cause shown by the landlord, should the landlord fail to return the security deposit or provide the aforesaid written statement within the twenty-one-day period established in § 129-19A herein, the landlord shall be liable to the tenant for an additional 25% of the entire security deposit in landlord's possession. Furthermore, in the event that the landlord willfully and without good cause fails to return all or a portion of the security deposit, a court may award to the tenant up to triple the amount of that portion of the security deposit wrongfully withheld from the tenant, together with reasonable attorney's fees and court costs. In determining whether to award such treble damages and/or attorney's fees, the court may consider the past practices of the landlord regarding return of other security deposits. Treble damages and/or attorney's fees shall not be awarded pursuant to this section where a landlord has made a good-faith estimate or has properly documented (e.g. with receipts, invoices) the amounts which properly should be withheld from the security deposit and has returned to the tenant the balance of the security deposit in a timely manner. Should the landlord, within the aforesaid twenty-one-day period, fail to return the entire security deposit or fail to provide the aforesaid written statement specifying the reasons for the retention of all or a portion of the security deposit, accompanied by full payment of the difference between the security deposit and the amount retained, it shall be presumed that the landlord is willfully and without good cause retaining the security deposit.
In any court action brought by a tenant for the return of the
security deposit, the landlord shall bear the burden of proving that
the withholding of the security deposit or any portion of it was justified.
Any attempted waiver of the terms of this article by a landlord
or tenant, by contract or otherwise, shall be deemed to be against
public policy and shall be considered void and unenforceable.
