Permanent Rent Reduction for Elimination of Storage Closets

Landlord asked the DHCR for permission to eliminate hallway storage closets in a rent-stabilized building. The DRA ruled for landlord on condition that landlord permanently reduce tenants' rents by the most recent rent guidelines increase. Landlord appealed and lost. Landlord claimed that since tenants no longer paid rent for the hallway closets they would receive a windfall. But landlord unilaterally eliminated the hallway closets before applying to the DHCR for permission to do so. The DRA's order proportionately and fairly compensated tenants for the loss of their storage space. In a separate proceeding, tenants had complained of decreased services and obtained rent reductions from the DHCR. Landlord must file separately to restore rents in order to obtain future rent increases.

322 West 57th Street: DHCR Adm. Rev. Docket Nos. YI410025RO, ZI410060RO (3/7/13) [4-pg. doc.]