N.Y. Social Services Law § 143-c: Avoidance of abuses in connection with rent security deposits

§ 143-c. Avoidance of abuses in connection with rent security

deposits. 1. Whenever a landlord requires that he be secured against

non-payment of rent or for damages as a condition to renting a housing

accommodation to a recipient of public assistance, a local social

services official may in accordance with the regulations of the

department secure the landlord by either of the following means at the

option of the local social services official:

(a) By means of an appropriate agreement between the landlord and the

social services official, or

(b) By depositing money in an escrow account, not under the control of

the landlord or his agent, subject to the terms and conditions of an

agreement between the landlord and the social services official in such

form as the department may require or approve provided, however, that

this option shall not be used in instances where recipients reside in

public housing.

2. Except as expressly provided in subdivision three of this section,

it shall be against the public policy of the state for a social services

official to pay money to a landlord to be held as a security deposit

against the non-payment of rent or for damages by a public assistance

recipient, or to issue a grant to a recipient of public assistance

therefor.

3. When, however, in the judgment of a social services official

housing accommodations available in a particular area are insufficient

to properly accommodate recipients of public assistance in need of

housing, and in order to secure such housing it is essential that he pay

money to landlords to be held as security deposits against the

non-payment of rent or for damages by public assistance recipients, or

to issue grants to recipients of public assistance therefor, such social

services official may pay or furnish funds for such security deposits

until sufficient housing accommodations are available in the particular

area to properly accommodate recipients of public assistance in need of

housing. Social services officials shall not pay or furnish such funds

in instances where recipients reside in public housing. Landlords

receiving such security deposits shall comply with the provisions of

article seven of the general obligations law. Such cash security

deposits shall be subject to assignment to the local social services

official by the recipients of public assistance or care. Any social

services official paying or furnishing funds for security deposits in

accordance with the provisions of this subdivision shall make diligent

effort to recover such payments or funds from a recipient landlord as

allowed by law.

4. This section shall apply to federally-aided categories of public

assistance except to the extent prohibited by applicable federal laws

and regulations.

5. This section shall apply to recipients of supplemental security

income benefits or additional state payments, as defined in section

three hundred of this chapter, and such persons shall be deemed

recipients of public assistance for the purposes of this section.