SCRIE Tenants Exempt from Effects of Electrical Metering Conversion

Landlord asked the DHCR for permission to convert from master metering to direct metering of electricity provided to rent-stabilized tenants. The DRA ruled for landlord. Electricity would no longer be included in tenants’ rents, tenants were given rent reductions, and, going forward, tenants would be billed for electricity.

Tenants appealed. They argued that the N.Y. State Energy Research and Development Authority (NYSERDA) shouldn’t dictate electric conversion policy to the DHCR. Tenants said that utilities had increased by 22 percent, which wasn’t accounted for by their rent reductions. Tenants also said that their Section 8 and Senior Citizens Rent Increase Exemption (SCRIE) subsidies would be reduced unfairly because the rent reductions wouldn’t compensate for the increased electricity charges.

The DHCR ruled against tenants. Rent Stabilization Code Section 2522.4(d)(3)(i) permits landlords to convert master-metered buildings to individual metering. Operational Bulletin 2003-1 sets forth a rent reduction formula designed to give landlords an incentive to convert while easing the financial effect on tenants. An appeals court has upheld the DHCR’s computation of rent reductions for electrical conversion. The rent reductions apply to Section 8 tenants, but tenants receiving SCRIE benefits do not get rent reductions and the cost of electricity remains included in their rents. Landlord is still permitted to install electrical conversion equipment in SCRIE tenants’ apartments.

62-60 108th Street: DHCR Adm. Rev. Docket No. WJ110050RT (6/4/09) [4-pg. doc.]