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Posted by TenantNet on September 01, 1998 at 00:04:15:

In Reply to: Re: DHCR has no jurisdiction over security deposits? posted by Tenant Rep on August 31, 1998 at 16:32:08:

: The question is not if interest is paid on security deposit. The points are was follows:

: 1) can the landlord apply security deposit for "retroactive MCI" that is still pending at DHCR as a PAR?

: 2) DHCR claims in writing that security deposits are outside its jurisdiction. Is this something new? did DHCR abdicates its responsibilites in this matter? if so, does not this encourage
: landlords to keep security deposits, as most recent immigrants are not likely to go to small claim courts to challenge.

: SANTA, please address these two issues. thanks.

You have two intertwining issues. For a good discussion on security
deposits, see the CTRC Fact Sheets on the web site. DHCR does limit the
deposit to one month, but does not have jurisdiction over getting the
owner to return them. When tenants move within the same building, the
owner usually transfers the existing deposit to the new unit and they
make an adjustment for the difference.

MCI's are a bit more complicated. Sec. 2529.12 of the Rent Stab. Code
provides the filing of a PAR stays the collection of retroactive MCI's
until the PAR is decided. So it's illegal for the owner to collect the
retroactive PAR at this point. But the prospective part of the MCI is
not stayed. I would 1) check the Code to make sure my memory is right,
2) check with DHCR again on the collection of DHCR's under PAR and if this
bears out, 3) have the tenant make the adjustment and put everything
in writing to the landlord what the tenant is doing (i.e., deducting
overpaid security deposit).

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Comments:
: : The question is not if interest is paid on security deposit. The points are was follows:

: : 1) can the landlord apply security deposit for "retroactive MCI" that is still pending at DHCR as a PAR?

: : 2) DHCR claims in writing that security deposits are outside its jurisdiction. Is this something new? did DHCR abdicates its responsibilites in this matter? if so, does not this encourage
: : landlords to keep security deposits, as most recent immigrants are not likely to go to small claim courts to challenge.

: : SANTA, please address these two issues. thanks.

: You have two intertwining issues. For a good discussion on security
: deposits, see the CTRC Fact Sheets on the web site. DHCR does limit the
: deposit to one month, but does not have jurisdiction over getting the 
: owner to return them. When tenants move within the same building, the 
: owner usually transfers the existing deposit to the new unit and they
: make an adjustment for the difference.

: MCI's are a bit more complicated. Sec. 2529.12 of the Rent Stab. Code
: provides the filing of a PAR stays the collection of retroactive MCI's
: until the PAR is decided. So it's illegal for the owner to collect the
: retroactive PAR at this point. But the prospective part of the MCI is
: not stayed. I would 1) check the Code to make sure my memory is right,
: 2) check with DHCR again on the collection of DHCR's under PAR and if this
: bears out, 3) have the tenant make the adjustment and put everything
: in writing to the landlord what the tenant is doing (i.e., deducting
: overpaid security deposit).



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