Landlord Can End Electrical Inclusion in Rent

Landlord applied to the DHCR for permission to stop paying for tenants' electricity. The DRA ruled for landlord on the condition that landlord give tenants a permanent rent reduction to offset the additional cost to tenants. Tenant appealed, arguing that his lease stated that the cost of electricity was included in his rent. He said landlord couldn't change the terms of his lease because he didn't agree to it. The DHCR ruled against tenant. Rent Stabilization Code Section 2522.4(d) allows the DHCR to grant landlord's request for conversion from master metering of electricity to individual metering with tenants paying separately for their own electricity. Tenant's lease didn't bar landlord from seeking permission for the electrical conversion or bar the DHCR from granting landlord's application. DHCR Operational Bulletin 2003-1 sets forth a schedule of rent reductions to be applied for electrical conversions.

17-25 West 86th Street: DHCR Adm. Rev. Docket No. UI430060RT (5/8/08) [2-pg. doc.]