Landlord Can Change Heating System If Tenants Bear No Costs for Heat

Landlord asked the DHCR for permission to modify services for two apartments after replacing the existing steel boiler with a building-wide dual heat pump/air conditioner system. The application indicated that tenants would be billed for the cost of heat from the new system, and the DHCR issued rent reduction orders. Landlord also said that the modification would result in billing to landlord for heating costs. The DRA ruled for landlord on condition that: (a) landlord continue to provide adequate heat during heating season and hot water throughout the year at landlord's sole cost and without any monetary liability to tenants for those services; and (b) during non-heating season, tenants could use either of the options proposed by landlord so that tenants could maintain control of costs for air conditioning. Tenant appealed and lost. Tenant had a rent reduction that would remain in effect unless and until landlord showed that it was providing heat at no cost to tenants.  

Festa: DHCR Adm. Rev. Docket No. EU410007RT (7/13/17) [3-pg. doc.]