Landlord Changed Intercom System Without Prior DHCR Approval

Tenants complained of a reduction in building-wide services. The DRO ruled for tenants and reduced their rents. Landlord had converted the building intercom system from a traditional system to a phone-line system without obtaining prior approval from the DHCR for modification of required services. Landlord appealed and lost. Landlord argued that tenants benefitted from the new intercom system and had frequently complained about defects in the old system that could no longer be repaired. But, by law, landlord was required to maintain required services and may not unilaterally change or modify required services without permission from the DHCR. Under Rent Stabilization Code Sections 2522.4(d) and (e), landlord was required to file an application for permission to modify services before doing so. It was also the DHCR’s policy, upheld by the courts, that a change in a building intercom system constitutes a reduction in services without approval of an application to modify services.

Electro Concourse Associates: DHCR Adm. Rev. Docket No. DT630042RO (3/9/16) [2-pg. doc.]