New York State Bill A3992
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[ Memo ]
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.