DHCR FACT SHEET #9 Division of Housing and Community Renewal SECURITY DEPOSIT A security deposit is money that a tenant deposits with the owner of the apartment for the repair of any damages to the apartment that the tenant is responsible for. The amount of a security deposit is usually equal to one month's rent. However, if two months' security deposit was collected from a tenant by the owner when the apartment was first under rent stabilization, and the same tenant is still occupying the apartment, that tenant remains bound by the two months' requirement. The next tenant cannot be required to deposit more than one month's rent as security. When a lease is renewed at a higher rental amount, or the rent is increased during the term of the lease, the owner can collect additional money from tenant to bring the security deposit up to the new monthly rent. Even though tenants may be exempt from paying a lease increase because of their Senior Citizen Rent Increase Exemption (SCRIE) [SEE FACT SHEET ON SPECIAL RIGHTS OF SENIOR CITIZENS], they must still pay the increased security. The security deposit must be kept by the owner in an interest bearing account in a New York State bank. The owner must notify the tenant of the name and address of the bank and credit the tenant the full annual interest, less 1% of the security deposit per year for the owner's administrative costs. The tenant can choose whether the interest is to be subtracted from the rent, held in trust until the end of the tenancy, or paid in a lump sum at the end of each year. A security deposit should not be used as a final month's rent. At the end of the lease, if the tenant honored the terms and conditions of the lease and left the apartment in the same condition as it was when rented, except for normal wear, the owner must return the full security deposit. If damage was done, the owner may apply part or all of the security deposit to the cost of repair If the tenant disagrees with the owner over the security deposit or interest, the tenant should contact the Consumer Protection Bureau of the New York State Attorney General's Office if the problem is building-wide, or for individual tenants, begin a proceeding in small claims court. The tenant can file a TENANT'S COMPLAINT OF RENT OVERCHARGES AND/OR EXCESS SECURITY DEPOSIT [DHCR Form RA-89] if the owner demands and the tenant pays more than one month's security. ------------------------------------------------------------ DHCR Fact Sheets (series of thirty) are issued by the New York State Division of Housing and Community Renewal (DHCR) as plain- english informational publications. For official agency policies, see DHCR Policy Statements, Advisory Opinions and Operational Bulletins. Also refer to the Rent Stabilization Code, the Rent Stabilization Law and various Rent Control Statutes. Electronic versions of these documents on TenantNet are for informational purposes only and there is no guarantee they will be accepted by any court (or even DHCR) as true copies of DHCR policy. The reader may obtain true copies of these documents from DHCR. Every attempt has been made to conform to the original Fact Sheets as issued by DHCR; TenantNet makes no representation the enclosed material is current or will be applied as written. The reader is advised that DHCR often fails to properly apply, interpret or enforce housing laws. Since housing laws are complex and often contradictory, it is recommended the reader obtain competent legal advice from a tenant attorney or counseling from a tenant association or community group. (rev. 3/13/96) DHCR documents are public documents; the electronic version of such documents have been developed by TenantNet and any added value, enhancements and/or proprietary features are copyright 1994, 1995 and 1996 by TenantNet. These documents may be freely distributed provided they remain intact as herein presented, including this and the top informational banner referencing TenantNet as the original provider. ------------------------------------------------------------ For more information or assistance, call the DHCR Rent Infoline at (718) 739-6400, or visit your Borough Rent Office. Queens Central Office 92-31 Union Hall St. 4th Fl. Jamaica, NY 11433 (718) 739-6400 Bronx One Fordham Plaza Bronx, NY 10458 (718) 563-5678 Brooklyn 250 Schermerhorn St. 3rd Floor Brooklyn, NY 11201 (718) 780-9246 Lower Manhattan 156 William Street 9th Floor NY, NY 10038 (212) 240-6011, 6012 South side of 110th St. and below Upper Manhattan 163 W. 125th St. 5th Floor NY, NY 10027 (212) 961-8930 North side of 110th St. and above Staten Island 350 St. Mark's Place Room 105 Staten island, NY 10301 (718) 816-0277 Nassau County District Rent Office 50 Clinton Street, 6th Floor Hempstead, NY 11550 (516) 481-9494 Westchester County District Rent Office 55 Church Street, 3rd Floor White Plains, NY 10601 (914) 948-4434 Rockland County District Rent Office 94-96 North Main St. Spring Valley, NY 10977 (914) 425-6575 Albany Regional Office 119 Washington Avenue Albany, NY 12210 (518) 432-0596 Buffalo Regional Office Ellicot Square Building 295 Main St., Room 438 Buffalo, NY 14203 (716) 856-1382 ------------------------------------------------------------