Landlord Can Convert to Direct Electric Metering with Rent Reductions

Landlord applied to the DHCR in 2011 for permission to modify building services in a loft building by terminating rent inclusion of electricity for tenants and changing from master metering to direct metering of electricity charges. The DRA ruled for landlord in 2012, permitting landlord to install individual meters in the apartments or in the building, so that tenants would pay their own electric bills based on usage. The DRA also reduced tenants' rents based on a DHCR schedule.

Tenants appealed and lost. DHCR Operational Bulletin 2003-1, as updated, and Policy Statement 93-2 outline the procedure for setting rent reductions in these cases. The schedule of rent reductions is derived from data analyzed by the NYC Rent Guidelines Board, as well as HPD tabulation of data from the U.S. Census Bureau. 

Various Tenants of 165 William Street: DHCR Adm. Rev. Docket No. AO410033RT (11/16/21)[3-pg. document]