DHCR-Approved Service Modification for Gas to Electric Stoves Included Rent Reduction

Landlord asked the DHCR for permission to replace gas-cooking stoves with electric stoves in rent-regulated apartments at its building. The DRA ruled for landlord. Tenant appealed and won. Tenant argued that, because landlord currently paid for cooking gas and gas heat, this modification would pass the expense of cooking facilities onto tenants. Tenant also pointed out that the building had no gas meters and that the tenant received permission from landlord, prior to the grant of landlord's service modification application, to operate a gas dryer in his apartment. In response to tenant's PAR, landlord admitted that it currently paid for the cooking gas and heating gas in the building and that it would be installing electric stoves only in currently vacant apartments, and for other apartments as they became vacant. Landlord also said that it would continue to provide and pay for cooking gas and heating gas in tenant's apartment. Landlord also said that it never gave tenant permission to have a gas dryer in his apartment. 

The DHCR pointed out that it was the agency's position that conversion from gas to electric stoves was an adequate substitution of services. Where tenants already paid for cooking fuel separate from the rent, no rent reduction was required for this modification of services. The provided service in such cases was the cooking facility, not the cooking fuel. But here, landlord in fact paid for gas cooking fuel while tenants paid for electricity. So tenant was entitled to a rent reduction in this case. But, since landlord stated that it would remove the existing gas stove from tenant's occupied apartment, a rent reduction would take place only as necessary and not immediately. If and when rent-regulated apartments in the building were converted from gas to electric cooking fuel, tenants would be compensated with a permanent rent reduction. And such rent reduction would be based on the HPD Cooking Gas Utility Allowance in effect at the time the conversion occurred. 

Neumann: DHCR Adm. Rev. Docket No. JP210045RT (2/2/23)[2-pg. document]