Tenant Paid for Own Heat and Hot Water

Tenant complained of a reduction in services. He said that after building renovations in September 2001, he was required to pay for his own heat and hot water based on individual gas and water meters installed by landlord. Landlord acknowledged the change but said that it wished to reimburse tenant. Landlord had asked tenant to send landlord his Con Edison bills. The DRA ruled for tenant and reduced his rent by 12 percent. Landlord appealed. Tenant had submitted his Con Edison bills to the DRA. Landlord argued that for the period in question, landlord should only have to reimburse tenant for Con Edison payments. Landlord said that this amount was much less than 12 percent of tenant's rent. Landlord also pointed out that the condition had been corrected and that tenant now paid only for cooking gas. The DHCR ruled against landlord. Landlord presented no proof of reimbursement to tenant while the case was pending before the DRA. Landlord in fact asked the DRA to determine how to fairly determine a refund to tenant. The Rent Stabilization Code allows the DHCR to consider the equities involved in adjusting rents. So the DRA reasonably reduced tenant's rent by more than one guideline increase, to compensate tenant for the amount that his utility bill had increased due to landlord's reduction in services.

MBZ Assocs. LLC: DHCR Adm. Rev. Dckt. No. SK410040RO (3/4/05) [4-pg. doc.]