Landlord Can Keep Two-Month Security After Building Becomes Stabilized

In an opinion letter, the DHCR advised landlord that he could keep a two-month security deposit collected from tenant at a time when the building wasn't rent-stabilized. The building subsequently became stabilized after landlord did renovations and got a J-51 tax abatement. But, under the Rent Stabilization Code, landlord can collect only one month's security deposit from any tenant who moves in while the building is under the J-51 program.

DHCR Opinion Ltr. by Nathaniel Geller 2/18/92 [1-page document]