Landlord Can Replace Metal Lock and Keys with Keycard System

LVT Number: #24741

Landlord asked the DHCR for permission to replace the existing standard locking system with a keyless electronic lock system in its rent-regulated building. The DRA ruled for landlord, with certain conditions. Landlord appealed and lost. Landlord argued that the DRA's requirement that it provide unlimited free keycards to all tenants and lawful occupants, plus four additional free keycards, was arbitrary and capricious, negated the increase in security that landlord sought to provide, and imposed a prohibitive expense.

Landlord asked the DHCR for permission to replace the existing standard locking system with a keyless electronic lock system in its rent-regulated building. The DRA ruled for landlord, with certain conditions. Landlord appealed and lost. Landlord argued that the DRA's requirement that it provide unlimited free keycards to all tenants and lawful occupants, plus four additional free keycards, was arbitrary and capricious, negated the increase in security that landlord sought to provide, and imposed a prohibitive expense. Landlord had proposed to provide each apartment with two free keycards, with additional keycards to be provided upon payment of a $50 refundable deposit per keycard. Landlord also pointed out that DHCR decisions in other cases didn't provide for unlimited key cards, and that DHCR opinion letters stated that landlords need only provide key cards to each lawful full-time apartment occupant and could charge a reasonable fee for additional keys. The DHCR found that the DRA's order was based on agency policy and practice and that the ruling on the provision of free keycards was justified by the fact that tenants couldn't copy keycards on their own as they could traditional metal keys. Notably, the DRA's order stated that tenants may obtain up to four free additional keycards for employees or guests, and didn't require landlord to supply any or all of these four keycards without tenant's need for them. The DRA also ruled that landlord could charge $25 per keycard for each replacement keycard if one was lost or stolen.

142-41 41st Avenue: DHCR Adm. Rev. Docket No. YC110030RO (2/21/13) [3-pg. doc.]

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