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Landlord may have spent security deposit

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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Landlord may have spent security deposit

Postby hellskitchener » Sat Sep 08, 2018 12:01 am

We have a situation in our building.

Every year, like clockwork, the tenants in our large building would receive a little interest check from the bank where our security deposits are kept.

This year, none of the tenants have received it.

Our Tenant Association suspects that the LL has spent the our money on several major RS buyouts of Tenants.

What does the Law say about this? Is this something DHCR can help us with, and are there penalties to a LL who empties the security deposit account?

We are prepared to send a letter from the TA asking where the money is?

Any other suggestions?

Thanks.
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Re: Landlord may have spent security deposit

Postby TenantNet » Sat Sep 08, 2018 12:53 am

Check the Forum's Reference section and search the forum and the site. There are a number of pages on deposits. It's been discussed many times.

Understand though that interest rates are so low that you might get back something less than a dollar.
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Re: Landlord may have spent security deposit

Postby hellskitchener » Sat Sep 08, 2018 1:04 am

Understood, but we have always gotten something annually from the bank with the accounting and usually a $3-$5.00 check.
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Re: Landlord may have spent security deposit

Postby hellskitchener » Sun Sep 09, 2018 2:08 pm

If we wanted to report the emptying of the security deposit accounts, what city agency has power to investigate?
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Re: Landlord may have spent security deposit

Postby TenantNet » Sun Sep 09, 2018 2:29 pm

Do you know for certain the account has been "emptied?" LLs are required to maintain deposits in banks in accounts set up for that purpose. They are required to tell you what bank holds the the account. Have you looked at our page on security deposits?

If the LL fails to send you interest, you can complain to the NYS Attorney General's office.
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Re: Landlord may have spent security deposit

Postby hellskitchener » Sun Sep 09, 2018 2:36 pm

They have failed to send us interest in the past year, after consistently sending it annually.
I read everything I could find about security deposits. We will send an email, (and certified letter) to the LL, and forward it to the AG's office.
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Re: Landlord may have spent security deposit

Postby TenantNet » Sun Sep 09, 2018 2:51 pm

Don't just send a copy of the letter to the AG. Make a proper complaint. (if you had read everything, then wouldn't you know to contact the AG's office?)

Have you contacted the bank? They are the ones who usually send out the checks.
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Re: Landlord may have spent security deposit

Postby hellskitchener » Sun Sep 09, 2018 2:55 pm

We will write a separate letter to the AG, but include our correspondence with the LL as supporting materials.
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Re: Landlord may have spent security deposit

Postby TenantNet » Sun Sep 09, 2018 7:03 pm

With the AG, make a proper complaint; not just a letter.
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