Landlord Must Refund Second Month's Security Deposit

Rent-stabilized tenant complained of rent overcharge, specifically that landlord held more than one month's security deposit even though tenant was more than 65 years old. Landlord argued that it bought the building from a hospital that originally rented to tenant under an employee occupancy agreement. Since prior landlord collected two months' security deposit while the building wasn't rent stabilized, landlord shouldn't have to refund the second month's deposit. The DRA ruled for tenant, and landlord appealed. The DHCR ruled against landlord. Rent Stabilization Law Section 26-511(c)(5) provides in relevant part that no landlord can retain a security deposit or advanced rent payment in connection with the use and occupancy of an apartment by a tenant who is 65 years of age older. So landlord must refund the second month's security deposit to tenant. 

Phillips: DHCR Adm. Rev. Docket No. ET210079RT (4/13/17) [3-pg. doc.]