Landlord Can Switch to Electronic Key Card System

Facts: Tenants asked for a building-wide rent reduction after landlord of Peter Cooper Village proposed to switch to building complex access system from metal keys to electronic key card system. Tenants claimed that there would be a limit on additional keys issued to tenants; that there would be conditions imposed on issuance and renewal of keys, such as photographing tenants; that there would be a tracking system recording tenants' arrival, which would threaten their security; that there would be a failure to accommodate observant Jews, who couldn't use the electronic card key access system on the Sabbath or certain holidays; that there would be a risk of identity theft because the key card would show tenants' photographs; that an inadequate number of employees would be available to remedy key malfunctions for 21 buildings; and that there would be restrictions on guests. Landlord argued that the key card system would improve building security and that tenants still had metal keys for their apartment doors. Landlord also said that there would be no charge for one key and that tenants could get up to four additional cards at no charge for employees or frequent guests, and pay an $8 fee for replacement cards. The DRA ruled for landlord, permitting landlord to modify services, and ruled against tenants. Tenants appealed. Landlord also appealed, to get clarification of certain aspects of the DRA's ruling. DHCR: Tenants lose. Landlord's use of a electronic key card system doesn't reduce services and doesn't violate rent regulation laws. NYPD's Crime Prevention Unit, as well as two security consultants, recommended this change. Tenants submitted no proof that the key cards would increase the risk of identity theft. Also, no Jewish Sabbath observers submitted any statements to the DRA. And landlord stated that it would have security personnel assist any observers who needed assistance entering the building on the Jewish Sabbath. As to identity theft, landlord wasn't putting any confidential, personal information on the key cards. Tenants have the option of having their name placed on the key cards or not. This option was extended to tenant guests who are given key cards. But landlord may require names to be placed on cards issued to tenant invitees, such as employees, caregivers, and independent contractors. No expiration dates should be placed on key cards for guests, but may be placed on key cards for tenant employees or invitees.

Sanders et al.: DHCR Adm. Rev. Dckt. No. TI410005RT et al. (4/28/06) [12-pg. doc.]