PA 11-94—HB 5437

Insurance and Real Estate Committee

Housing Committee

AN ACT CONCERNING SECURITY DEPOSITS

SUMMARY: This act eliminates the requirement that a landlord pay a minimum 1. 5% interest rate on residential security deposits. Prior law required a landlord to pay at least the average savings deposit interest rate paid by insured commercial banks published in the Federal Reserve Board Bulletin in November of the prior year (i. e. , deposit index), but not less than 1. 5%. (The 2010 deposit index rate is 0. 28%. ) The act retains the deposit index method for calculating the security deposit interest rate. It also makes technical changes.

EFFECTIVE DATE: January 1, 2012

OLR Tracking: ND: JK: JL: DF