Prior Landlord Never Returned Security Deposit

New landlord demanded that tenants pay one month's security deposit. New landlord bought the building from a receiver and claimed that it got no security deposits from prior landlord or receiver. Tenant had paid a security deposit to prior landlord and asked the DHCR if new landlord could demand a new security deposit. In an opinion letter, the DHCR said no. It didn't matter whether new landlord received the security deposits from anyone. If the security deposit wasn't returned to tenant, new landlord can't ask for a new payment. New landlord, in fact, is responsible for returning the security deposit to tenant when tenant moves out.

DHCR Opin. Ltr. by Charles Goldstein (10/22/01) [2-pg. doc.]