276             1997 Session Laws of Kansas             Ch. 68

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 58-2550 is hereby amended to read as follows:
58-2550. (a) A landlord may not demand or receive a security deposit for
an unfurnished dwelling unit in an amount or value in excess of one
month's periodic rent. If the rental agreement provides for the tenant to
use furniture owned by the landlord, the landlord may demand and re-
ceive a security deposit not to exceed one and one-half (11/2) month's 11/2
months' rent, and if the rental agreement permits the tenant to keep or
maintain pets in the dwelling unit, the landlord may demand and receive
an additional security deposit not to exceed one-half (1/2) 1/2 of one
month's rent. A municipal housing authority created under the provisions
of K.S.A. 17-2337 et seq., and amendments thereto, which is wholly or
partially subsidized by aid from the federal government may, pursuant to
a rental agreement in which rent is determined solely by the personal
income of the tenant, may demand and receive a security deposit in ac-
cordance with a schedule established by the housing authority, which is
based on the bedroom unit size of the dwelling unit. Any such municipal
housing authority which establishes such a schedule shall provide a de-
ferred payment plan whereby the tenant may pay the deposit in reason-
able increments over a period of time and shall pay to the tenant interest

Ch. 68             1997 Session Laws of Kansas             277

on the amount deposited at a rate of not less than five percent (5%) per
year, payable upon termination of the tenant's tenancy.

(b) Upon termination of the tenancy, any security deposit held by the
landlord may be applied to the payment of accrued rent and the amount
of damages which the landlord has suffered by reason of the tenant's
noncompliance with K.S.A. 58-2555, and amendments thereto, and the
rental agreement, all as itemized by the landlord in a written notice de-
livered to the tenant. If the landlord proposes to retain any portion of the
security deposit for expenses, damages or other legally allowable charges
under the provisions of the rental agreement, other than rent, the land-
lord shall return the balance of the security deposit to the tenant within
fourteen (14) 14 days after the determination of the amount of such ex-
penses, damages or other charges, but in no event to exceed thirty (30)
30 days after termination of the tenancy, delivery of possession and de-
mand by the tenant. If the tenant does not make such demand within
thirty (30) 30 days after termination of the tenancy, the landlord shall
mail that portion of the security deposit due the tenant to the tenant's
last known address.

(c) If the landlord fails to comply with subsection (b) of this section,
the tenant may recover that portion of the security deposit due together
with damages in an amount equal to one and one-half (11/2) 11/2 the
amount wrongfully withheld.

(d) Except as otherwise provided by the rental agreement, a tenant
shall not apply or deduct any portion of the security deposit from the last
month's rent or use or apply such tenant's security deposit at any time in
lieu of payment of rent. If a tenant fails to comply with this subsection,
the security deposit shall be forfeited and the landlord may recover the
rent due as if the deposit had not been applied or deducted from the rent
due.

(e) Nothing in this section shall preclude the landlord or tenant from
recovering other damages to which such landlord or tenant may be en-
titled under this act.

(f) The holder of the landlord's interest in the premises at the time
of the termination of the tenancy shall be bound by this section.

Sec. 2. K.S.A. 58-2550 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 7, 1997.