Uncollected Security Deposit Increases Are Waived

Rent-stabilized tenant moved into apartment in 1981 and paid a security deposit of $345. For many years, landlord requested no additional security deposit whenever tenant's lease was renewed. Then, in 2008, landlord asked for a security deposit increase equal to the difference between the $345 and tenant's current rent. Tenant asked the DHCR if landlord could do this. In an opinion letter, the DHCR said no. Landlord had waived any security deposit increases it didn't collect upon prior lease renewal. At the time of tenant's 2008 renewal, landlord could request a security deposit increase equal only to the applicable rent guidelines increase. Under RGBO #40, this meant that landlord could increase tenant's security deposit by the greater of 4.5 percent or $45 for a one-year renewal, and the greater of 8.5 percent or $85 for a two-year renewal.

DHCR Opin. Ltr. by Fewer (3/18/09) [1-pg. doc.]