New York State Bill A3992

Text of New York State Bill A03992


                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         3992

                              1997-1998 Regular Sessions

                                 I N  A S S E M B L Y

                                   February 10, 1997
                                      ___________

       Introduced  by M. of A. PERRY -- read once and referred to the Committee
         on Housing

       AN ACT to amend the  real  property  actions  and  proceedings  law,  in
         relation to mandatory deposits of disputed rent into an escrow account
         in homeowner tenant proceedings

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. The real property actions and proceedings law is amended by
    2  adding a new section 732-a to read as follows:
    3    S 732-A. DEPOSIT OF RENT. 1.  IN ALL PROCEEDINGS BETWEEN A  TENANT  OR
    4  TENANTS  AND AN OWNER OR OWNERS OF A RESIDENTIAL BUILDING WITH UP TO SIX
    5  RENTAL UNITS OR LESS, AND WHERE THE OWNER OR OWNERS OCCUPY AT LEAST  ONE
    6  UNIT  AS  A  PRIMARY RESIDENCE, THE COURT SHALL REQUIRE THAT ANY AND ALL
    7  RENT PAST DUE AND DUE DURING THE PROCEEDINGS BE PAID TO THE COURT TO  BE
    8  DEPOSITED  IN  AN  INTEREST  BEARING  ACCOUNT; PROVIDED THAT THE OWNER`S
    9  PETITION OR ANSWER STATES THAT PAYMENT OF RENT IS IN  DISPUTE  AND  THAT
   10  THE  TENANT  IS  IN  ARREARS FOR MORE THAN THIRTY DAYS IN THE PAYMENT OF
   11  RENT AND THAT THERE IS NO AGREEMENT OTHERWISE CONCERNING THE PAYMENT  OF
   12  DISPUTED  RENT.   UPON FINAL DETERMINATION, THE COURT SHALL DISBURSE THE
   13  RENT DEPOSITED AS APPROPRIATELY DETERMINED BY THE COURT, EXCEPT THAT THE
   14  PROPERTY OWNER SHALL BE PRESUMED TO BE ENTITLED TO THE  FULL  AMOUNT  OF
   15  RENT DUE AND DEPOSITED INTO THE ESCROW ACCOUNT.
   16    2.  IN THE EVENT THAT A TENANT ASSERTS THAT RENT WAS PAID AND PROVIDES
   17  PROOF OF SUCH TO THE COURT, OR THAT NON-PAYMENT IS A RESULT OF A DISCON-
   18  TINUATION OF SOCIAL SERVICES` BENEFITS, THE COURT SHALL ORDER THAT  ONLY
   19  RENT  DUE DURING THE PROCEEDING BE DEPOSITED IN SUCH ACCOUNT ESTABLISHED
   20  PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
   21    3. SUCH ACCOUNT SHALL BE ESTABLISHED BY THE COURT FOR THE PURPOSES  OF
   22  HOLDING RENTS WITH ANY INTEREST EARNED BY SUCH ACCOUNT TO BE USED IN THE
   23  ADMINISTRATION OF SUCH ACCOUNT.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             { } is old law to be omitted.
                                                                  LBD07660-01-7

       A. 3992                            2

    1    S 2. This act shall take effect on the one hundred eightieth day after
    2  it shall have become a law.