House Bill 4525

CODING: Words stricken are deletions; words underlined are additions.







    Florida House of Representatives - 1998                HB 4525

        By Representative Merchant






  1                      A bill to be entitled

  2         An act relating to security deposits; amending

  3         s. 83.49, F.S.; providing that certain security

  4         deposits must be placed in interest-bearing

  5         accounts; providing for the deposit of interest

  6         into the State Housing Trust Fund; providing

  7         for the use of such funds; providing procedures

  8         with respect to such interest-bearing accounts;

  9         providing an effective date.

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11  Be It Enacted by the Legislature of the State of Florida:

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13         Section 1.  Subsection (10) is added to section 83.49,

14  Florida Statutes, to read:

15         83.49  Deposit money or advance rent; duty of landlord

16  and tenant.--

17         (10)  Whenever money is deposited or advanced by a

18  tenant on a rental agreement as security for the performance

19  of the rental agreement or as advance rent for other than the

20  next immediate rental period for a lease agreement in a rental

21  project which has benefited from any of the housing programs

22  administered by the State of Florida or its assigns, the money

23  deposited or advanced shall be placed in an interest-bearing

24  account in a Florida banking institution.  The entire amount

25  of the interest generated from the interest-bearing account

26  shall be accumulated and annually deposited by the landlord

27  into the State Housing Trust Fund as created in s. 420.0005

28  for distribution by the Florida Housing Finance Corporation

29  for neighborhood revitalization housing programs administered

30  by the state.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1998                HB 4525

    513-171B-98






  1         (a)  Every landlord shall keep separate tenant security

  2  deposits accounts in a recognized Florida state depository

  3  authorized to receive such funds.

  4         (b)  The separate accounts comprised of landlord funds

  5  required to be maintained under this section, shall be

  6  interest-bearing accounts from which withdrawals or transfers

  7  may be made without delay, subject only to the notice period

  8  which the depository institution is required to reserve by law

  9  or regulation.

10         (c)  The interest accruing on this account, net of any

11  reasonable and appropriate financial institution service

12  charges or fees, shall be paid to the state treasurer for

13  deposit in the Florida Housing Trust Fund. Appropriate service

14  charges or fees are those charges made by financial

15  institutions on other demand deposit or "now" accounts.

16         (d)  The interest-bearing account shall earn interest

17  at a rate not less than that applicable to individual accounts

18  of the same type, size, and duration and for which withdrawals

19  or transfers can be made without delay, subject to any notice

20  period that the depository institution is required to observe

21  by law or regulation.

22         (e)  The Florida Housing Financing Corporation is the

23  beneficial owner of the interest accruing to the

24  interest-bearing account, minus any service charges or fees.

25         (f)  For each interest-bearing account under this

26  section, the landlord shall direct the depository institution

27  to do all of the following:

28         1.  Annually, before February 1, remit to the Florida

29  Housing Finance Corporation the total interest or dividends,

30  minus service charges or fees, earned on the average daily

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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1998                HB 4525

    513-171B-98






  1  balance in the interest-bearing account during the 12 months

  2  ending on the previous December 31.

  3         2.  May not assess a service charge or fee for an

  4  interest-bearing account against the Florida Housing Finance

  5  Corporation.

  6         Section 2.  This act shall take effect upon becoming a

  7  law.

  8

  9            *****************************************

10                          HOUSE SUMMARY

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      Provides that whenever money is deposited by a tenant as
12    security for a lease agreement in a rental project which
      has benefited from any of the housing programs
13    administered by the State of Florida, the deposit must be
      deposited in an interest-bearing account and the entire
14    interest shall be accumulated and annually deposited by
      the landlord into the State Housing Trust Fund to be used
15    by the Florida Housing Finance Corporation for
      neighborhood revitalization housing programs administered
16    by the state. Provides procedures with respect to such
      interest-bearing accounts. See bill for details.
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