HB 5344 Summary

• Removes security deposit limits previously capping deposits at two months' rent for tenants under 62 and one month's rent for tenants 62 and older, eliminating age-based restrictions on security deposits.

• Requires landlords to immediately deposit all security deposits into escrow accounts at financial institutions and maintain them separately, with strict rules governing when funds can be withdrawn.

• Mandates landlords return security deposits within 30 days of tenancy termination or 15 days after receiving written notice of forwarding address (whichever is later), with accrued interest, or provide itemized written statement of damages withheld.

• Establishes liability for landlords violating deposit return requirements: twice the deposit amount for general violations, or $10 or twice the accrued interest (whichever is greater) for failing to deliver interest only.

• Clarifies that security deposit refunds paid to social services beneficiaries are excluded from claims and liens, and protects deposits through priority rights over creditors in receivership proceedings, effective October 1, 2022.