General Assembly Raised Bill No. 253 proposes to repeal the current maximum limits on security deposits that landlords can charge tenants, which are currently capped at two months' rent for tenants under sixty-two years of age and one month's rent for those aged sixty-two and older. This repeal will allow landlords to set security deposit amounts without restrictions. The bill also introduces new legal language that clarifies the treatment of security deposits, emphasizing that they remain the property of the tenant and are exempt from the landlord's creditors. It outlines the process for returning security deposits, including timelines and penalties for non-compliance, and requires landlords who are not state residents to appoint the Secretary of the State as their attorney for service of process.

Additionally, the bill amends various sections of existing law, including the reclassification of subsections related to security deposits and the introduction of provisions that allow landlords to retain part of the deposit for damages due to tenant non-compliance. It mandates that landlords provide written notice of the escrow amount and financial institution details within thirty days of receiving a security deposit. The bill also establishes penalties for landlords who fail to comply with these regulations and ensures that recipients of assistance programs must sign an agreement regarding the return of their security deposit. Overall, Raised Bill No. 253 aims to enhance tenant protections while providing landlords with clearer guidelines and greater flexibility in managing security deposits.

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