SCRIE Tenants Exempt from Rent Reduction

Landlord asked the DHCR for permission to discontinue the inclusion of electricity in rent-stabilized tenants' rents and change from master metering to submetering at a seven-building complex. The DRA ruled for landlord. Tenants appealed and lost. Rent Stabilization Code Section 2522.4(d)(3) and DHCR policy permit electrical conversion to individual metering so that tenants become responsible for the cost of their apartment electricity. Update No. 1 to DHCR Operational Bulletin No. 2003-1 lists a schedule of rent reductions to offset the increased electrical costs to tenants. Tenants argued that submetering alone wasn’t an effective energy conservation measure. But the DHCR requires no further energy conservation measure beyond conversion from master metering to individual meters. Landlord sufficiently described the proposed submetering in its application and agreed to the rent reductions. However, tenants receiving Senior Citizens Rent Increase Exemption (SCRIE) benefits would not get rent reductions and the cost of electricity would remain part of their rents even though landlord was permitted to install equipment in their apartments required to complete the electrical conversion.

620 Lenox Avenue: DHCR Adm. Rev. Docket Nos. XF410071RT et al. (12/11/09) [5-pg. doc.]