Brooklyn residents receive refund from landlords through settlement over security deposits
A number of Brooklyn residents are receiving refund from their landlords through some settlement over security deposit.
According to state Attorney General Letitia James, real estate company SGW Properties has agreed to repay nearly $300,000 in illegally withheld security deposits to more than 120 tenants who lived in buildings the company owns in Crown Heights, Bedford-Stuyvesant, Midwood and Stuyvesant Heights.
Changes in 2019 to the state’s rental law required landlords like SGW to return deposits within 14 days to tenants vacating an apartment or provide a written itemized list of their reasons for keeping the deposit.
If a landlord fails to provide the list within two weeks, the company no longer has the right to keep the deposit and must return the entire amount.
Tenants who sue for their security deposit and are successful are entitled to damages. If the landlord’s actions were intentional, the tenant is entitled to double damages.
“As housing, health and affordability crises continue, it’s more important than ever to put money back into the pockets of New Yorkers,” James said.
“Tenants deserve transparency and accountability from their landlords, and New Yorkers should trust that their security deposit will be returned to them as required by their leases and the law.”
In May 2021, James’ office launched an investigation into violations of the new security deposit law, following complaints by tenants who reported that landlords were withholding their money.
The investigation found that SGW failed to send itemized lists outlining its reasons for withholding security deposits, and was not authorized to keep the deposits.
The company also failed to properly segregate the security deposits in escrow accounts as required by law, James said.
As a result, James said, the company unlawfully withheld security deposits from 129 residents for a total of $296,273.
A company representative said SGW is now in full compliance with the law. It blamed the problems on short staffing during the COVID pandemic.
