Appeals Court Upholds DHCR Rent Reduction Based on Reduction in Living Space
LVT Number: #32485
Rent-stabilized tenant complained to the DHCR that installation of gas piping in her living room reduced required services because the installation was done in an unworkmanlike manner and reduced her total apartment space. The DHCR ruled for tenant and reduced her rent because DHCR inspection showed that the cooking gas pipe was installed on the wall in the living room, next to the kitchen, and thereby reduced the living room space by an area of 20 x 5/12 square foot. It also obstructed the living room area and effectively reduced the space of the living room [see LVT #31285]. Landlord then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled for landlord and sent the case back to the DHCR for reconsideration.
The DHCR appealed and won. The appeals court held that the DHCR's determination that landlord's installation of new exposed gas pipes in tenant's living room resulted in a loss of dwelling space that warranted a rent reduction had a rational basis. The DHCR's ruling wasn't arbitrary or capricious. The DHCR rationally found that the effect of the loss of living space on tenant's use and enjoyment of the apartment was not de minimis. The configuration of the exposed gas pipes would require tenant to take precautions to avoid any type of impact that could potentially cause a dangerous gas leak.
Matter of 495 Estates v. DHCR: Index No. 158723/20, App. No. 17269, Case No. 2022-00264, 2023 NY Slip Op 00720 (App. Div. 1 Dept.; 2/9/23; Kern, JP, Singh, Shulman, Pitt-Burke, Higgitt, JJ)