Landlord Must Pay for Hot Water

Rent-stabilized tenant complained of a reduction in services, claiming that former landlord improperly transferred the cost of providing hot water to tenant by removing the building's boiler and installing an electric-powered hot water tank in the apartment. The DHCR ruled for tenant and reduced his rent by the amount of his electric bill until such time as landlord assumed the cost of providing hot water. Landlord appealed, claiming that the DHCR's decision was arbitrary and unreasonable because it went beyond ordering the type of rent reduction authorized by Rent Stabilization Code (RSC) Section 2523.4(a)(1). The court ruled against landlord. The DHCR wasn't limited to reducing tenant's rent by a rent guidelines increase as provided in the RSC. The DHCR was required to reduce rents when landlord failed to provide required services, and its action was both reasonable and equitable.

Gold v. DHCR: Index No. 113218/11, NYLJ No. 1202562436080 (Sup. Ct. NY; 6/6/12; Stallman, J)