Overcharge Complaint About Security Deposit Dismissed Because Tenant Had Moved Out

An unregulated tenant complained to the DHCR in December 2019 that he was specifically overcharged because he paid three months' rent at $2,600 per month when he moved into his apartment in July 2019. He claimed that landlord collected the extra two months' rent totalling $5,200 as excess security deposit. Landlord answered that the apartment had been vacancy-deregulated in 2003 and therefore should be dismissed. The DRA ruled against tenant because he had moved out of the apartment and the DHCR no longer had the authority to rule on his security deposit claim.

Tenant appealed and lost. Tenant argued that the DRA should have considered whether the unit was improperly deregulated and whether there was any additional overcharge. The DHCR disagreed. Tenant filed a specific overcharge complaint concerning the security deposit only, and had moved out of the unit. The DHCR has long held that jurisdiction over a former tenant's security deposit lies with the state Attorney General or a court, as set forth in NY General Obligations Law Section 7-103.

Eick: DHCR Adm. Rev. Docket No. LX410006RT (2/15/24)[2-pg. document]