H-1706.1  _______________________________________________

                          HOUSE BILL 2024

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Representatives Costa, Mason, Scott, Tokuda, Veloria, Cody, Dickerson, R. Fisher, Romero and Wolfe

Read first time 02/22/95.  Referred to Committee on Trade & Economic Development.

Paying interest on deposits held by landlords of mobile home parks.

    AN ACT Relating to interest on deposits held by landlords of mobile home parks; amending RCW 59.20.170; and adding a new section to chapter 59.20 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 59.20.170 and 1979 ex.s. c 186 s 12 are each amended to read as follows:

    All moneys paid to the landlord by the tenant as a deposit as security for performance of the tenant's obligations in a rental agreement shall promptly be deposited by the landlord in a trust account, maintained by the landlord for the purpose of holding such security deposits for tenants of the landlord, in a bank, savings and loan association, mutual savings bank, or licensed escrow agent located in Washington.  ((Unless otherwise agreed in writing, the landlord shall be entitled to receipt of interest paid on such trust account deposits.))  The landlord shall provide the tenant with a written receipt for the deposit and shall provide written notice of the name and address and location of the depository and any subsequent change thereof.  If during a tenancy the status of landlord is transferred to another, any sums in the deposit trust account affected by such transfer shall simultaneously be transferred to an equivalent trust account of the successor landlord, and the successor landlord shall promptly notify the tenant of the transfer and of the name, address and location of the new depository.  The tenant's claim to any moneys paid under this section shall be prior to that of any creditor of the landlord, including a trustee in bankruptcy or receiver, even if such moneys are commingled.

NEW SECTION. Sec. 2.  A new section is added to chapter 59.20 RCW to read as follows:

    (1) A landlord of any mobile home park with twenty-five or more lots shall pay interest on any money paid to the landlord by a tenant as a deposit or as security for performance of the tenant's obligations, to the mobile home park relocation fund established under RCW 59.21.050.  The interest shall be computed from the date of the deposit at a rate of four percent per year on any security deposit held by the landlord for more than six months.  The interest shall be paid within thirty days after the end of each twelve-month period.

    (2) A landlord may retain any portion of the interest payable under subsection (1) of this section that is required to compensate the landlord for nonpayment of rent or for damages caused by the tenant in excess of the security deposit.  A landlord may also retain a portion of the interest payable under subsection (1) of this section, pursuant to rules adopted by the department of community, trade, and economic development, to cover reasonable costs associated with the payment of this interest.

    (3) The interest shall be remitted by the landlord to the department of revenue under the rules the department shall adopt.  The interest shall be forwarded by the department of revenue to the state treasurer for deposit into the mobile home park relocation account.  The provisions of chapter 82.32 RCW shall apply to the collection and enforcement of this interest.

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