Peeling Paint and Plaster at Bulkheads Was De Minimis Condition

Rent-stabilized tenants complained of a reduction in building-wide services based on the condition of the bulkhead walls and ceiling at the building. The DRA ruled for tenants and reduced their rents after inspection showed that the bulkhead walls and ceiling were unmaintained. Landlord appealed and won. The DRA reduced rents based on "evidence of cracked peeling paint/plaster on the bulkhead walls and ceilings." Landlord argued that the two bulkheads in the building were solely designated as mechanical space not accessible or usable for tenants. So, even if the DRA's findings were correct, the condition was de minimis and didn't warrant any rent reduction. The DHCR agreed. Under Rent Stabilization Code Section 2523.4(e)(17) and DHCR Fact Sheet #37, any painting condition that's limited to the top-floor bulkhead area is considered a de minimis condition, provided there's no active water leak in that area. There were no active leaks reported or observed in landlord's building. 

Osgood LLC: DHCR Adm. Rev. Docket No. IX410001RO (4/16/21) [3-pg. doc.]