Landlord Who Removed Lobby Space Must Reduce Rents by $50 per Month

Landlord applied to the DHCR for permission to modify building services by moving tenant mailboxes from an open area to a new secured mailroom. The DRA ruled for landlord on condition that: (1) tenants' rents be reduced permanently by $50 per month; (2) landlord ensure that the door to the mailroom was self-closing; (3) landlord provide each apartment with two sets of mailroom and mailbox keys; and (4) if it chose to continue the current package delivery policy, landlord properly secure packages in the mailroom until a tenant to whom it belonged claimed the package.

Landlord appealed and lost. Landlord objected to the rent reduction. But landlord had created the mailroom before getting DHCR permission to modify services and had removed a significant portion (approx. 650 square feet) of open lobby space to do so. But the lobby area was a required service and reducing its square footage constituted a reduction in services requiring a rent reduction. Landlord also objected to the DRA's condition concerning packages. But landlord's application stated that tenants could pick up their packages in the new mailroom.

57 Elmhurst, LLC: DHCR Adm. Rev. Docket No. KV110008RO (4/5/24)[7-pg. document]