Hallway Storage Closet Was Ancillary Service

Rent-stabilized tenant complained that landlord refused to renew her lease for a hallway closet space outside her apartment that she rented from landlord. The DRA ruled for tenant. The DRA stated that landlord didn't have to offer tenant a lease renewal for the closet space. But the service remained rent stabilized and can't be taken away. Landlord also couldn't increase the closet rent until giving tenant a renewal lease and could only increase the rent pursuant to rent guidelines. Landlord appealed, claiming that the hallway closet wasn't a required service. Landlord also claimed that there was a contrary ruling in a housing court case between landlord and tenant. The DHCR ruled against landlord. Landlord never answered tenant's DHCR complaint and didn't notify the DHCR about the court proceeding. So landlord couldn't raise claims for the first time on appeal. In addition, the DHCR wasn't bound by the ruling in the court case. The DRA correctly ruled that the closet space was an ancillary service and that landlord couldn't increase the rent for the closet without giving tenant a renewal lease.

322 West 57th Owner, LLC: DHCR Adm. Rev. Docket No. VG410029RO (11/16/07) [3-pg. doc.]