Inc., 32 Misc 3d 131[A], 2011 NY Slip Op 51319[U] [App Term, 2d Dept, 2d, 11th
& 13th Jud Dists 2011]).
"Under General Obligations Law § 7-103 (1), it is black letter law that money
deposited or advanced by a tenant on a lease agreement 'shall continue' to be tenant's money and
'shall' be held in trust for the benefit of tenant until the lease is terminated and it is repaid or
applied. The deposit is meant to cover the costs of repairing damages to the
apartment"(14 E. 4th St.
Unit 509 LLC v Toporek, 203 AD3d 17 [1st Dept 2022]).
The security deposit "must be returned at the conclusion of the tenancy, absent proof, for
example, that the tenant caused damage beyond that attributable to ordinary wear and tear" (Gable v Cahill, 69 Misc 3d
128[A], 2020 NY Slip Op 51135[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists
2020]). "Where a landlord establishes that the tenant caused such damage, it is the landlord's
further burden to establish the reasonable value of any of the repairs allegedly made to the
premises" (id. [internal citations and quotation marks omitted]).
As claimant correctly pointed out, Section 2525.4 of the Rent Stabilization Code provides
that a security deposit paid by a tenant of a rent stabilized housing accommodation is subject to
the provisions of article 7 of the General Obligations Law. General Obligations Law §
7-108 states, in pertinent part:
"(b) The entire amount of the deposit or advance shall be refundable to the tenant
upon the tenant's vacating of the premises except for an amount lawfully retained for the
reasonable and itemized costs due to non-payment of rent, damage caused by the tenant beyond
normal wear and tear, non-payment of utility charges payable directly to the landlord under the