Text to be removed highlighted in red.
1 Procedure. Amend RSA 540-A:6, I(a) to read as follows:
I.(a) a landlord shall not demand or receive any security deposit in an amount or value in excess of one month's rent or $100, whichever is greater. Nothing in this section shall prohibit a landlord from entering into a written lease that requires the quarterly or less frequent payment of rent; provided, however, that the security deposit received in addition to the initial rent payment may not exceed the equivalent of one month's rent.
2 New Section; Security Deposits for Applicants Not Meeting Landlord's Approval Criteria. Amend RSA 540-A by inserting after section 8 the following new section:
540-A:9 Security Deposits for Applicants Not Meeting Landlord's Approval Criteria.
I. A landlord may require a security deposit of up to 2 months' rent if an applicant fails to meet the landlord's approval criteria, provided that the unmet criteria were disclosed prior to or concurrently with the submission of the rental application, and further provided that at least one of the following is true:
(a) The applicant's credit score fails to meet the landlord's requirements, and the landlord's minimum FICO score requirement does not exceed 650.
(b) The applicant's verifiable gross income from lawful sources fails to meet the landlord's requirements, and the landlord's minimum gross income requirement does not exceed 3 times the monthly rent.
(c) The applicant fails to meet the landlord's requirements regarding prior eviction proceedings, excluding cases dismissed without judgment against the tenant.
(d) The applicant fails to meet the landlord's requirements regarding outstanding unpaid judgments pertaining to rental or financial obligations.
(e) The applicant has no prior rental history and is unable to provide a landlord reference.
II. Nothing in this section shall be construed to:
(a) Compel a landlord to accept a higher security deposit as a compensating factor;
(b) Compel a landlord to approve an applicant who fails to meet their approval criteria; or
(c) Limit a landlord's ability to set approval criteria at their discretion; provided, however, that a landlord whose approval criteria are more restrictive than the thresholds specified in RSA 540-A:9, I shall conform to the limits set forth in RSA 540-A:6, I.
III. A landlord who requires a security deposit exceeding one month's rent under this section shall provide written notice to the applicant specifying the grounds for the higher deposit, informing the applicant of their right to request a re-screening under RSA 540-A:9, IV, and disclosing any fees for re-screening.
IV. A tenant who was required to provide a security deposit exceeding one month's rent under this section may submit a written request for re-screening at their own expense, no more than once every 6 months. If the tenant establishes that they meet the landlord's standard rental criteria, the landlord shall remove the additional security deposit requirement. The landlord shall, at its option, issue a refund of rent or apply any excess deposit amount to the tenant's future rental obligations within 30 days of the tenant's submission for re-screening.
3 Effective Date. This act shall take effect 60 days after its passage.
Text to be added highlighted in green.
1 Procedure. Amend RSA 540-A:6, I(a) to read as follows:
I.(a) Except as provided for inRSA 540-A:9, a landlord shall not demand or receive any security deposit in an amount or value in excess of one month's rent or $100, whichever is greater. Nothing in this section shall prohibit a landlord from entering into a written lease that requires the quarterly or less frequent payment of rent; provided, however, that the security deposit received in addition to the initial rent payment may not exceed the equivalent of one month's rent.
2 New Section; Security Deposits for Applicants Not Meeting Landlord's Approval Criteria. Amend RSA 540-A by inserting after section 8 the following new section:
540-A:9 Security Deposits for Applicants Not Meeting Landlord's Approval Criteria.
I. A landlord may require a security deposit of up to 2 months' rent if an applicant fails to meet the landlord's approval criteria, provided that the unmet criteria were disclosed prior to or concurrently with the submission of the rental application, and further provided that at least one of the following is true:
(a) The applicant's credit score fails to meet the landlord's requirements, and the landlord's minimum FICO score requirement does not exceed 650.
(b) The applicant's verifiable gross income from lawful sources fails to meet the landlord's requirements, and the landlord's minimum gross income requirement does not exceed 3 times the monthly rent.
(c) The applicant fails to meet the landlord's requirements regarding prior eviction proceedings, excluding cases dismissed without judgment against the tenant.
(d) The applicant fails to meet the landlord's requirements regarding outstanding unpaid judgments pertaining to rental or financial obligations.
(e) The applicant has no prior rental history and is unable to provide a landlord reference.
II. Nothing in this section shall be construed to:
(a) Compel a landlord to accept a higher security deposit as a compensating factor;
(b) Compel a landlord to approve an applicant who fails to meet their approval criteria; or
(c) Limit a landlord's ability to set approval criteria at their discretion; provided, however, that a landlord whose approval criteria are more restrictive than the thresholds specified in RSA 540-A:9, I shall conform to the limits set forth in RSA 540-A:6, I.
III. A landlord who requires a security deposit exceeding one month's rent under this section shall provide written notice to the applicant specifying the grounds for the higher deposit, informing the applicant of their right to request a re-screening under RSA 540-A:9, IV, and disclosing any fees for re-screening.
IV. A tenant who was required to provide a security deposit exceeding one month's rent under this section may submit a written request for re-screening at their own expense, no more than once every 6 months. If the tenant establishes that they meet the landlord's standard rental criteria, the landlord shall remove the additional security deposit requirement. The landlord shall, at its option, issue a refund of rent or apply any excess deposit amount to the tenant's future rental obligations within 30 days of the tenant's submission for re-screening.
3 Effective Date. This act shall take effect 60 days after its passage.