Landlord Installs New Telephone System

Landlord applied for MCI rent hikes based on the installation of a concierge communication station and telephone system. The DRA initially ruled against landlord, finding that the new system was a service substitution that required the DHCR's approval, not an MCI. Landlord requested reconsideration. The DRA ruled for landlord and granted an MCI rent increase of 63 cents per room. Landlord also filed an application to modify services, which the DRA granted. However, the DRA gave tenants a $5.00 per month rent reduction to offset the cost of the new system, since it required tenants to use their own telephones to contact the concierge desk and was somewhat less convenient than the old system. Both landlord and tenants appealed. Landlord claimed that there should be no rent reduction for the new service. Tenants claimed that they should be charged no rent increase for it. The DHCR ruled against landlord and ruled for tenants, only to the extent that the effective date of the rent increase was changed to coincide with the date that the service modification order was issued.

315 W. 57th St./330 W. 58th St.: DHCR Admin. Rev. Dckt. No. JL410179RO (10/10/02) [4-pg. doc.]