Loss of Storage Space Was Minor

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker & Bruh, LLP, attorneys for the landlord.) Facts: Tenants complained to the DHCR of a reduction in building-wide services based on landlord's elimination of basement storage space. Landlord claimed that storage space was never included in tenants' leases or in the building services registration. Landlord also argued that the basement was too small to hold storage for the building's 36 apartments. The DRA ruled for tenants, and landlord appealed. While landlord's PAR was pending in 1995, the DHCR issued an internal memorandum with guidelines on minor service reductions. The memo said that reduction of storage space wasn't a reduction of required services if there was no lease clause providing for it and if tenants didn't complain within four years of discontinuation of the service. Still, the DHCR ruled against landlord. Landlord then started a court case challenging the DHCR's ruling. The court ruled against landlord, and landlord appealed. The appeals court ruled that the DHCR must follow its memorandum guidelines in this case and sent the case back to the DHCR. After further review, the DHCR ruled for landlord. Tenant appealed. Court: Tenant loses. There was no provision for storage space in tenant's lease, and she had waited more than four years to complain about the loss of storage space. Although the DHCR's internal memo wasn't in effect when the DRA's order was issued, the DHCR had a policy even then that there would be no rent reduction for minor service reductions. And while landlord's appeal was pending, the Rent Stabilization Code was amended to formalize the DHCR's 1995 memorandum. So there was no question that this rule applied to tenant's case.

Schoberle v. DHCR: NYLJ, 11/26/03, p. 29, col. 3 (Sup. Ct. NY; Figueroa, J)