OLR Bill Analysis
AN ACT CONCERNING SECURITY DEPOSITS FOR AGE-RESTRICTED PUBLIC HOUSING.
This bill requires housing authorities, community housing development corporations, and other corporations providing state-assisted public housing to the elderly and individuals with disabilities to allow these tenants to pay security deposits in installments. The installments must be (1) reasonable in light of the tenant's income and (2) paid in equal amounts and at approximately equal intervals not exceeding one month, over a period of at least 12 months. The bill specifies that it does not prohibit a housing authority or corporation from waiving a security deposit requirement or extending installments beyond 12 months.
The bill eliminates the requirement that housing authorities and the corporations noted above return security deposits to elders and individuals with disabilities after the tenant has lived in the housing for at least one year. It instead requires them to return security deposits when the tenancy terminates.
By law, housing authorities and corporations must pay an annual interest rate on these tenants' security deposits equal to the deposit index (0.08% for calendar year 2016).
Lastly, the bill makes a technical change.
EFFECTIVE DATE: October 1, 2016 and applicable to individuals whose tenancy begins on or after that date.
Joint Favorable Substitute