Landlord Installed Individual Heaters Without DHCR Permission

Rent-stabilized tenant complained of a reduction in services based on landlord’s unilateral transfer to tenant of the costs for heat and hot water. The DRA ruled for tenant and reduced his rent. The DRA also authorized tenant’s deduction of the cost of gas and electricity from his monthly rent. Landlord appealed and lost. Landlord claimed that there was no failure to maintain heat and hot water and that tenant’s payment for these services was a de minimis, or minor, condition not warranting a rent reduction. Landlord also argued that the DHCR was authorized only to reduce tenant’s rent by a guidelines rent but couldn’t authorize deduction of the utility cost from tenant’s rent. But the reduction in required services wasn’t de minimis. In 2005, before tenant moved into the apartment, landlord converted the building from a central boiler system with steam radiators in each apartment to gas/electric heaters. The bathroom and inner room of the apartment were left without any heat source. This change was made without a prior application to the DHCR for permission to modify services. This discontinuation of services was a reduction in required services and wasn’t de minimis. And the DHCR was authorized to apply an additional penalty as a matter of fairness.

Lev Tov Properties LLC: DHCR Adm. Rev. Docket No. ZK210028RO (9/14/12) [4-pg. doc.]