Landlord Can't Modify Building Services to Rent-Stabilized Tenants by Transferring Cost of Heat

Landlord of a Hempstead building applied to the DHCR in 2022 for approval of a proposed building services modification based on removal of an oil boiler that provided steam heat as well as removal of tenant supplied window-mounted air conditioners, so that landlord could replace them with a combined HVAC system via heat pump with units and controls for each system within each apartment. Landlord also sought to remove radiators from the 60 rent-stabilized apartments and shift the heating cost to tenants.

The DRA ruled against landlord, who appealed and lost. ETPA Section 2503.4 requires landlords to maintain required and/or essential services, which includes heat and hot water services. ETPR Section 2502.4 further requires landlord to file an application with the DHCR for permission to decrease or modify required and/or essential services.  It was long-standing DHCR policy that heat was an essential service that must continue to be provided by landlord when included in tenants' rents. Landlord couldn't shift the cost of heat to rent-regulated tenants as it was included in tenants' rents. Even if tenants supported landlord's application, they couldn't waive their rights under ETPA Section 2500.12. 

Bofsa Management: DHCR Adm. Rev. Docket Nos. KW710003RO (6/30/23)[3-pg. document]