NY A01431

Requires landlords who demand security deposits to offer tenants at least one alternative payment option: installment payments over at least six months, a reduced deposit of no more than 50% of one month's rent, or payment through the Department of Social Services grant program for qualifying tenants

Permits landlords to accept rental security insurance (surety bonds or insurance policies) in lieu of deposits, with requirements that the insurance provider be state-licensed, coverage remain effective for the entire lease term, and tenants cannot be held liable for claims paid to landlords

Prohibits landlords from charging additional fees or interest on tenants who choose alternative security deposit payment methods

Mandates landlords provide written notice of all available security deposit alternatives before entering into a lease agreement, including specific required disclosure language explaining tenant rights

Classifies violations of these requirements as potential source of income discrimination under the Executive Law, making non-compliance actionable as a civil rights violation