Rent Reduction for Minor Condition Tenants Didn't Complain About Was Revoked

(Decision submitted by Larry L. Rukaj of the Paramus, N.J., real estate consulting firm of Larry L. Rukaj & Associates, Inc.)

Rent-stabilized tenants complained of a reduction in building-wide services. The DRA ruled for tenants in part, finding that the paint/plaster above the window by the lobby entrance door wasn’t maintained. The DRA reduced tenants’s rents. Landlord appealed, arguing that tenants didn’t complain about that condition and that it was, at any rate, de minimis. Landlord also said that the DHCR waited almost a year after inspection to issue its rent reduction order, which was unfair to landlord. The DHCR ruled against landlord, who then filed an Article 78 court appeal. The court sent the case back to the DHCR for reconsideration. The DHCR then ruled for landlord and revoked the rent reduction. Rent Stabilization Code Section 2523.4(e)(17) included as a de minimis condition “isolated or minor areas where paint or plaster is peeling; or other similarly minor areas requiring repainting; provided there are no active water leaks.” The DHCR also agreed that tenants didn’t specifically complain about this condition, and landlord had repaired it. 

C.E.Y. Realty Assoc., LLC: DHCR Adm. Rev. Docket No. EU430006RP (2/16/17) [3-pg. doc.]