Landlord Can Convert Steam Pipe/Radiator System to Electric Baseboard Heat System

Landlord asked the DHCR for permission to modify its building's central heating system from a steam pipe/radiator system to an electrical baseboard heating system with individual baseboard units in each apartment, and with the cost of electricity for heating and hot water to be paid by landlord. The DRA ruled for landlord.

Tenant appealed and lost. Rent Stabilization Code (RSC) Section 2522.4(e) permits modification or substitution of services at no change in the legal regulated rent where such change isn't inconsistent with the Rent Stabilization Law (RSL) or RSC. It's the DHCR's established position that replacing a steam pipe/radiator heating system with an electrical heating system that operates using individual baseboard units powered by owner-supplied electricity, constitutes an adequate substitution of service consistent with the RSL or RSC. And, contrary to tenant's claims, a landlord is generally not required to show that a modification or decrease in service is necessary or justified, or that an existing service/system is defective, when the proposed change has been deemed an adequate substitution of services. Landlord's application also wasn't premature because there was no requirement that government permits be applied for before the DHCR approves a modification. And documentation from a plumber wasn't required unless specifically requested by the DRA. 

Williams II: DHCR Adm. Rev. Docket No. IX410007RT (12/17/21)[2-pg. document]