NY A00259

Requires landlords to offer tenants covered by general obligations law sections 7-107 and 7-108 at least one of three security deposit alternatives: payment over six or more equal monthly installments, a reduced deposit of no more than 50 percent of one month's rent, or eligibility-based payment through the department of social services grant program (18 NYCRR 352.6)

Permits landlords to accept rental security insurance (surety bonds or insurance policies from New York-licensed carriers) as an alternative to traditional security deposits, with specified requirements including that coverage be effective upon first premium payment and remain effective for the entire lease term

Prohibits landlords from imposing additional fees or interest on tenants who elect alternative deposit payment methods and requires that installment agreements be included in the lease with specified deposit amounts

Mandates landlords provide written notice to tenants prior to lease execution detailing available security deposit alternatives and explicitly stating tenants cannot be required to provide insurance coverage exceeding the standard security deposit amount

Designates violations as potential discrimination based on source of income under executive law sections 292 and 296, effective 30 days after enactment