Landlord Illegally Converted Hot Water Service

Rent-stabilized tenant complained of a reduction in services. In 1997, landlord had stopped providing hot water and installed an electrically operated hot water tank in tenant's bathroom closet. Tenant then had to pay for his own hot water. Landlord made this conversion without the DHCR's permission. The DRA ruled for tenant. In addition to ordering a rent reduction, the DRA ruled that tenant could deduct from the rent the cost of his monthly electric bill from Con Edison until landlord restored service. Landlord appealed, claiming that the DHCR had no authority to order the additional penalty of the deduction of tenant's electric bill.
The DHCR ruled against landlord. Heat and hot water are fundamental services that landlord must provide to rent-stabilized tenants. Landlord's conversion of tenant's hot water service was unlawful. And because it was done more than 10 years before tenant complained, the DHCR could not compare prior Con Ed bills to current ones to determine how much the conversion affected tenant's electricity costs. So the DRA reasonably permitted tenant to deduct the full cost of his electric bill from his rent until service was restored.

Gold: DHCR Adm. Rev. Docket No. YG410032RO (9/23/11) [4-pg. doc.]