Replacement of Intercom System Requires Telephone Landlines

Landlord asked the DHCR for permission to replace a traditional wired intercom system with a modernized telephone-based intercom system. The DRA ruled for landlord on condition that, in order to offset costs to rent-regulated tenants of maintaining landline telephones to use with the new system, legal rents were reduced by $15 per month. Landlord appealed and lost. Landlord argued that it was an error for the DRA not to notify landlord during processing that the rent reduction would be a condition to approval. The DHCR noted that, while not specifically spelled out by the Rent Stabilization Code, the DHCR’s standard policy for intercom changeovers to a telephone-based system required touch-tone landline phones along with a permanent rent reduction to offset the basic cost for maintenance of the landline. Landlord also stated that it was in the process of reverting back to the old intercom system. If so, the DHCR stated that landlord must now submit a new service modification application based on the reconversion of the intercom system. 

Claflin Apartments LLC: DHCR Adm. Rev. Docket No. EU610048RO (2/24/17) [3-pg. doc.]