Housing Committee
AN ACT CONCERNING SECURITY DEPOSITS FOR AGE-RESTRICTED PUBLIC HOUSING
SUMMARY: This act requires housing authorities, community housing development corporations, and other corporations providing state-assisted public housing to seniors and individuals with disabilities to allow these tenants to pay security deposits in installments, pursuant to a written agreement. The agreement must include a payment schedule and a determination of the tenant's ability to pay according to the schedule. 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 act specifies that it does not prohibit a housing authority or corporation from waiving a security deposit requirement or extending installments beyond 12 months.
The act eliminates the requirement that housing authorities and the corporations noted above return security deposits to seniors and individuals with disabilities after the tenant has lived in the housing for 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). The act prohibits interest from accruing on a security deposit until all installments have been paid in full.
Finally, the act makes technical changes. It expands the definition of “security deposit” to include installment payments and replaces an outdated reference to the social services commissioner with the housing commissioner. By law, the housing commissioner is responsible for housing for seniors and individuals with disabilities.
EFFECTIVE DATE: October 1, 2016 and applicable to individuals whose tenancy begins on or after that date.
OLR Tracking: KS, JR; VR; bs