(a) Any housing authority, community housing development corporation, or other corporation approved by the Commissioner of Housing for state financial assistance to provide public housing for senior citizens and disabled persons under the provisions of part VI or VII of chapter 128 shall return any security deposit with interest, to any tenant or former tenant at the time the tenancy is terminated in accordance with the provisions of section 47a-21.

(b) Any housing authority, community housing development corporation or other corporation approved by the Commissioner of Housing for state financial assistance to provide public housing for senior citizens and disabled persons under the provisions of part VI or VII of chapter 128 shall, pursuant to a written agreement, permit the payment of a security deposit in installments that are reasonable in light of the income of the tenant. Such written agreement shall include the schedule of installment payments and a determination of the tenant's ability to pay under such a schedule. Such installments shall be payable in equal amounts at approximately equal intervals not exceeding one month over a period of at least twelve months. Interest payable pursuant to section 47a-21 shall not begin to accrue until the security deposit, including all installments due if applicable, has been paid in full. Nothing in this section shall preclude any such housing authority or corporation from waiving the payment of the security deposit, or agreeing to extend the installment payments over a period of more than twelve months.

(P.A. 79-371; P.A. 82-246, S. 2; P.A. 93-262, S. 1, 87; P.A. 12-24, S. 1; P.A. 16-74, S. 1.)

History: P.A. 82-246 amended section to change interest rate from 4% to 5.25%; P.A. 93-262 authorized substitution of commissioner and department of social services for commissioner and department on aging, effective July 1, 1993; P.A. 12-24 added provision re calculation of interest rate on and after January 1, 2013; P.A. 16-74 designated existing provisions as Subsec. (a) and amended same to replace “Commissioner of Social Services” with “Commissioner of Housing” and replace provisions re calculation of interest to be provided to tenant who resided in housing at least one year with provisions re interest to be provided to tenant or former tenant at the time tenancy is terminated, and added Subsec. (b) re installment payments for security deposit, effective October 1, 2016, and applicable to any tenant who first commenced occupancy on or after October 1, 2016.