Within three (3) business days after receiving notification of the displacement, the
landlord shall provide written notice to a displaced tenant, by personal delivery or mail to
the tenant’s last known address, indicating when and where the tenant’s security deposit
will be available for return. If the last known address for the tenant is at the property that
is no longer habitable, the landlord shall post notices at each exterior entrance of the
property. The landlord may make arrangements to have the municipal clerk hold the
security deposit so that the tenant may collect it at the clerk’s office. If the tenant does
not collect the security deposit within 30 days, it shall be redeposited or reinvested by the
landlord in the same bank from which it was withdrawn.
If the tenant does collect the security deposit and then reoccupies the property, the tenant
is required to repay the security deposit. The tenant must immediately redeliver one-third
of the security deposit, one-third more in 30 days and the final one-third in 60 days.
Recipients of Governmental Assistance
A governmental agency that has made deposits on behalf of a tenant, who has received
financial assistance through a State or federal program such as welfare, or rental
assistance, may impose a civil penalty against a landlord who has willfully and
intentionally withheld deposits in violation of this law. The penalty shall be no less than
$500 and no more than $2,000 for each offense.