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Can we pursue the legal recovery of our security deposits if at the time when we paid them, the building was not MDL registered?
Anonymous2 views2 answers
The building is now registered with MDL, but we gave three months security to a market rate apartment, that (we didn't understand this at the time) was not legally registered with MDL when we made the deposit. In addition to this, when we asked for information about our security deposits, the LL had to be pestered for several months. Finally in fear of a tenant-wide rent strike, the LL gave each of us an unofficial looking document with no signatures on it stating the bank name and address where supposedly the security deposits are being held. Is there some other more official document with signatures and receipt that is what we should have looked for as a record of the security deposit, or is this type of unofficial document acceptable? In addition to all of this, we had been trying to ge
Dear Brooklyn Tenant:
New York State law allows a landlord required to register a multiple dwelling to recover all legal rights (such as use of the Housing Court for a nonpayment summary proceeding) whenever the landlord files a current and effective rent registration. Courts will allow NYC landlords use of the court for past due rent claim even when the rent arose during the period the landlord was not in compliance with the registration requirements of the MDL. The MDL registration mandate does not impact upon a tenant security deposit.
Even had the landlord never complied with the statute and provided information about the security deposit, your cancelled check should provide the name of the back and account. There is no "official" form to use when informing the tenant of the bank information. The landlord usually would provide the name and address of the bank in a designated location in the lease.
New York State does not restrain a landlord from taking more than one month as a security deposit in a non-rent regulated building.
Tenants are not ordinarily entitled to the return of the security deposit until after the expiration of the leas and after moving out. New York State law does not provide a tenant the option to skip rent in exchange for giving up the return of the security deposit.
Did the tenants have the assistance of an attorney during the rent strike?
The issue of registration is between the city and the property owner not the property owner and tenants.
The following information is from the Attorney General's "Tenant's Rights Guide":
Landlords, regardless of the number of units in the building must treat the deposits as trust funds belonging to their tenants and they may not co-mingle deposits with their own money. Landlords of buildings with six or more apartments must put all security deposits in New York bank accounts earning interest at the prevailing rate. Each tenant must be informed in writing of the bank's name and address and the amount of the deposit. Landlords are entitled to annual administrative expenses of 1% of the deposit. All other interest earned on the deposits belong to the tenants. Tenants must be given the option of having this interest paid to them annually, applied to rent, or paid at the end of the lease term. If the building has fewer than six apartments, a landlord who voluntarily places the security deposits in an interest bearing account must also follow these rules.
For example: A tenant pays a security deposit of $1,000. The landlord places the deposit in an interest bearing account paying 1.1%. At the end of the year the account will have earned interest of $11. The tenant is entitled to $1 and the landlord may retain $10, 1% of the deposit, as an administrative fee. However, with interest rates averaging below 1% in recent years, tenants may not be eligible to receive any interest at all.
