No Interest Awarded on Security Deposit Refund

Tenant complained of a rent overcharge. He said that landlord collected excess security deposit. The DRA ruled for tenant and ordered landlord to refund $176. Tenant appealed, arguing that the DHCR should have assessed interest on the security deposit refund ordered. The DHCR ruled against tenant. Landlord was required by law to keep tenant's security deposit in an interest-bearing bank account. Interest on the excess security deposit would already have accrued in the bank account. So the DRA didn't charge landlord interest on the security deposit refund because the money was already subject to interest assessed by the bank.

Rojas: DHCR Adm. Rev. Docket No. WD210015RT (6/13/08) [3-pg. doc.]