NYC adds no separate deposit-return ordinance — the state 14-day rules govern — but for rent-stabilized units an excess deposit above the one-month cap is a rent overcharge recoverable through DHCR (Form RA-89), with treble damages for willful overcharges.
Both New York law and New York City's ordinance apply to you.
New York State law governs the deposit itself throughout the city: GOL § 7-108’s 14-day return-or-itemize deadline (missing it forfeits any right to retain), up to 2× the deposit for a willful violation, the statewide one-month cap, § 7-103’s interest/trust-account rules for six-plus-unit buildings, and the § 7-107 rent-stabilized carve-out (eff. Nov 15, 2025).
New York City penalty
Overcharge route (rent-stabilized)
City ordinance — separate remedy
For rent-stabilized units, the Rent Stabilization Code folds an excess security deposit into the definition of “rent,” so a deposit collected above the one-month cap can be pursued as a rent overcharge (9 NYCRR § 2520.6(c)) — filed with DHCR on Form RA-89, with treble damages where the overcharge was willful (willfulness is presumed and the owner bears the burden of rebutting it), a six-year recovery window, and costs in that proceeding (Admin Code § 26-516). Important limit: this channel attaches to an EXCESS deposit at collection — it is not a remedy for the ordinary failure to return a lawful one-month deposit at move-out, which the state § 7-108 rules govern.
New York penalty
up to 2× (willful)
State law — still applies
A landlord who misses the 14-day deadline forfeits any right to retain the deposit; a willful violation exposes the landlord to punitive damages of up to twice the deposit under § 7-108(1-a).
These are two distinct remedies under two different laws — they are not the same claim, and one does not replace the other. The New York return deadline of 14 days still applies.
A narrow legacy exception: Under Admin Code § 26-511(c)(5), certain legacy rent-stabilized tenancies involving tenants 62 and older or SSI/SSDI recipients may lawfully retain a pre-existing two-month deposit — so an above-one-month deposit is not automatically an overcharge in every case.
Yes. New York State law governs the deposit itself throughout the city: GOL § 7-108’s 14-day return-or-itemize deadline (missing it forfeits any right to retain), up to 2× the deposit for a willful violation, the statewide one-month cap, § 7-103’s interest/trust-account rules for six-plus-unit buildings, and the § 7-107 rent-stabilized carve-out (eff. Nov 15, 2025).
For rent-stabilized units, treat any deposit demanded above one month’s rent as a rent overcharge under the Rent Stabilization Code — the tenant can file DHCR Form RA-89
For rent-stabilized units, the Rent Stabilization Code folds an excess security deposit into the definition of “rent,” so a deposit collected above the one-month cap can be pursued as a rent overcharge (9 NYCRR § 2520.6(c)) — filed with DHCR on Form RA-89, with treble damages where the overcharge was willful (willfulness is presumed and the owner bears the burden of rebutting it), a six-year recovery window, and costs in that proceeding (Admin Code § 26-516). Important limit: this channel attaches to an EXCESS deposit at collection — it is not a remedy for the ordinary failure to return a lawful one-month deposit at move-out, which the state § 7-108 rules govern. This is a separate remedy from the New York state penalty, which also applies: A landlord who misses the 14-day deadline forfeits any right to retain the deposit; a willful violation exposes the landlord to punitive damages of up to twice the deposit under § 7-108(1-a).
New York General Obligations Law § 7-108 and Rent Stabilization Code, 9 NYCRR § 2520.6(c) and NYC Administrative Code § 26-516. We verify these against the ordinance text itself; the date we last checked is shown on this page.
Sources & verification
The New York City rules on this page were verified against the ordinance text itself:
Last verified against primary sources on .
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New York City sits on top of New York's statewide security deposit law. Read the full New York rule →
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