Tenant asking security deposit to move out

[Ankan Basak]

Havent gotten paid last 2 months. Issued notice of termination as I also found out the unit is not legally rentable. The tenant asking for one-month security deposit back so he can pay for the next place he will be moving into end of this month. Tenant threatening if I dont, he will stay back rent-free till eviction goes through for another 2-3 months. 

This is NY, and eviction takes time. Also, legally I cannot even have them in the unit for next-month's town reinspection. What to do? I am tempted to give him the security deposit, but I fear he may still not move out. I dont get the keys back till end of this month. Or maybe I dont give the security deposit and let the courts evict them in expedite manner because the unit is not rentable in the first place and they cannot legally live there?