Fitness Room

Landlord cooperative building converted one room in a unit to an exercise/fitness room. Landlord allowed the co-op shareholders to use the fitness room for a fee but didn't allow nonpurchasing rent-stabilized tenants to use it. Landlord asked the DHCR if it could provide limited access to rent-stabilized tenants in any way that would avoid having the fitness room become an ancillary service. In an opinion letter, the DHCR said that if the owner or a related entity provided any access to the fitness room to rent-stabilized tenants, it would become a required ancillary service. The fitness room wouldn't become an ancillary service only if it was provided by an independent contractor. To be considered an independent contractor, the operator must have a written agreement with landlord and there can't be a direct pass-through of fees from the contractor to landlord.

DHCR Opin. Ltr. by Charles Goldstein (12/27/01) [3-pg. doc.]