Tenants' Rent Reduced for Lobby Space Reduction

Landlord asked the DHCR for permission to reduce building lobby space. The DRA ruled for landlord on the condition that each tenant's rent be reduced by $11 per month. Both landlord and tenants appealed. Landlord claimed that the rent reduction was excessive; tenants argued that it wasn't enough. The DHCR ruled against both sides. The DRA reasonably calculated the rent reduction. Landlord had reduced the lobby from 230 square feet to 32 square feet many years before getting the DHCR's required permission to do so. Landlord claimed that it removed only 150 square feet of residential space out of a building total of over 10,000 square feet. But the lost space represented 1 percent of the residential area. The DRA reasonably based the rent reduction on the average current rent in the building.

166 East 56th Street: DHCR Adm. Rev. Docket Nos. VF430056RO, VF430067RT (10/26/07) [2-pg. doc.]