Amount of HVAC Service Surcharge Not Regulated Under Rent Stabilization

(Decision submitted by Eileen O’Toole of the Manhattan law firm of Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., who represented the landlord.)

Rent-stabilized tenant of 421-a building complained of rent overcharge based on a lease requirement that tenant pay for HVAC services provided by landlord, in addition to monthly apartment rent. The DHCR ruled against tenant, finding that the HVAC charges weren’t part of the legal regulated rent and that therefore landlord’s collection of HVAC surcharge wasn’t subject to rent stabilization. Tenant filed an Article 78 appeal and lost. The DHCR reasonably interpreted the law. Rent Stabilization Code Section 2520.6(c) defines “rent” so that it does not include surcharges authorized under RSC 2522.10. RSC 2522.10 doesn’t expressly define “utility service,” so  it wasn’t unreasonable for the DHCR to interpret this regulation as encompassing HVAC charges. 

Hidalgo v. DHCR: Index No. 18059/14 (Sup. Ct. Kings; 2/4/16; Spodek, J)