HB 5345 Summary

• Removes limits on security deposits that landlords may demand from tenants, eliminating prior restrictions of two months' rent for tenants under 62 and one month's rent for tenants 62 and older.

• Requires landlords to deposit all security deposits into escrow accounts at financial institutions and maintain them for the benefit of tenants, with deposits remaining tenant property.

• Mandates landlords pay annual interest on security deposits at a rate not less than the deposit index as defined in section 36a-26, with interest paid to tenants on the tenancy anniversary date or credited toward rent.

• Requires landlords to return security deposits within 30 days of tenancy termination or 15 days after receiving written notice of forwarding address, whichever is later, with an itemized statement if deductions are made for damages.

• Establishes penalties for landlord violations including liability for twice the security deposit amount or $10 plus twice the accrued interest if only interest payment is withheld, and allows tenants to pursue claims through small claims court.