Heat and Hot Water Weren't Base Date Services Provided by Landlord

The DHCR's Tenant Protection Unit (TPU) filed service reduction complaints on behalf of six rent-stabilized tenants, claiming that inspection showed that the building's central heating/hot water system had been removed and replaced with a system of six individual apartment heating and hot water units without filing a service modification application with the DHCR. The DRA ruled for tenants, reduced their rents, and gave additional relief based on a finding that landlord had taken action without prior DHCR approval to transfer the costs of providing heat and hot water from landlord to each individual tenant.

Landlord appealed and won. Landlord showed that owner-provided heat and hot water weren't base date services because tenants always had their own individual heating systems since 2011 and had always paid for these services. Landlord showed that the building was vacant in 2007, was then substantially rehabilitated, and became rent stabilized solely because landlord obtained J-51 tax benefits starting in December 2012 for the completed work. When tenants moved into the building in 2011, the individual apartment heating/hot water units were in place and were always paid for by tenants. So, there was no reduction in required services because heat and hot water weren't a base date service when the rehabilitated building became rent stabilized under J-51.

Fulton Gardens LLC: DHCR Adm. Rev. Docket Nos. FP210050RO through FP210055RO (8/17/18) [3-pg. doc.]