Buildings Together Were Horizontal Multiple Dwelling Subject to Rent Stabilization

Two tenants complained of rent overcharge. The DRA ruled against them, finding that the building had only four apartments and therefore wasn't rent stabilized. Tenants appealed and won. Tenants claimed that the building was part of a horizontal multiple dwelling (HMD) that consisted of six residential units and therefore formed a rent-stabilized building. Tenants said that the buildings together had a long history of common ownership, a shared boiler, common water and sewer lines, and other common systems. The DHCR agreed that there were sufficient indications of common facilities, ownership, management, and operation to treat the housing as an HMD. Both buildings in question were purchased in a single transaction by current landlord in 1984. Six mailboxes for both addresses were located in one of the buildings. There was a shared main water line, sewer line, electrical line, gas line, one heating system, and all electric and gas meters for both buildings located in one of the buildings. The buildings were adjacent to each other, connected to one another and had common looking facades. There was no common roof because one building was two-story and the other three-story. Despite having a separating foundation wall in the basements, there were holes to facilitate shared piping for the common systems. The common systems outweighed the fact that the two buildings have different block and lot numbers and different tax designations. The tax designations were based on the number of residential and commercial units in each building and no analysis was made to determine whether the buildings comprised one unit with common systems when the tax designations were assigned.

Rosendo/Romano: DHCR Adm. Rev. Docket Nos. IU410021RT - IU410023RT (8/24/21)[4-pg. document]