Landlord Must Refund Excess Security Deposit

Rent-stabilized tenant in a 421-a building complained of a rent overcharge. The DRA found no overcharge, but directed landlord to refund excess security deposit collected. Landlord appealed and lost. Under the 421-a tax benefit program, landlord can collect a 2.2 percent increase annually. This increases the collectible rent, but not the legal regulated rent. While tenant's collectible rent with the 2.2 percent increase was $2,021, his legal regulated rent remained $1,923.65. So landlord must refund the difference to tenant.

80-81 & First Associates: DHCR Adm. Rev. Docket No. ZC410015RO (11/15/11) [2-pg. doc.]