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A LANDLORD WHO SEEKS TO RETAIN PART OF A TENANT’S SECURITY DEPOSIT MUST PROVIDE THE TENANT WITH AN ITEMIZED STATEMENT OF THE DAMAGE WITHIN 14 DAYS OF THE VACATION OF THE PROPERTY; HERE THE ITEMIZED STATEMENT WAS SIX DAYS LATE, PRECLUDING SUMMARY JUDGMENT IN FAVOR OF THE LANDLORD (SECOND DEPT). ​

The Second Department, reversing Supreme Court, determined the fact that defendant landlord did not comply with General Obligations Law section 7 (which requires the landlord who seeks to retain a portion of a security deposit for damage to the property to submit an itemized statement within 14 days of the tenant’s vacation of the property} precluded summary judgment in favor of the landlord. Here the landlord submitted the itemized statement six days late:

“In 2019, the legislature enacted the Housing Stability and Tenant Protection Act of 2019 (hereinafter HSTPA) (L 2019, ch 36)” … , “landmark legislation making sweeping changes to the rent laws and adding greater protections for tenants throughout the State” … . In order to use security deposit funds to pay the cost of repairing damages caused by a tenant … , a landlord must comply, among other things, with General Obligations Law § 7-108(1-a)(e), one of the statutory provisions enacted by HSTPA. Pursuant to General Obligations Law § 7-108(1-a)(e), “[w]ithin fourteen days after the tenant has vacated the premises, the landlord shall provide the tenant with an itemized statement indicating the basis for the amount of the deposit retained, if any, and shall return any remaining portion of the deposit to the tenant.” General Obligations Law § 7-108(1-a)(e) further provides that, “[i]f a landlord fails to provide the tenant with the statement and deposit within fourteen days, the landlord shall forfeit any right to retain any portion of the deposit” … . Cohen v Abruzzo, 2024 NY Slip Op 03163, Second Dept 6-12-24

Practice Point: Pursuant to General Obligations Law section 7, a landlord who seeks to retain part of a tenant’s security deposit must provide the tenant with an itemized statement of the damages within 14 days of the vacation of the property.

 

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