Discontinuation of Service Elevator Results in 3% Permanent Rent Reduction

Landlord asked the DHCR in 2018 for permission to modify required services for rent-stabilized tenants by removing the building's service elevator. Landlord had in fact already removed the service elevator. The building still had a separate passenger elevator. The DRA ruled for landlord and granted the request on condition that tenants receive a permanent $25 monthly rent reduction. Tenants appealed and won, in part. Among other things, tenants argued that any rent reduction granted for the service modification should be greater than $25. The DHCR agreed and modified the permanent rent reduction to 3 percent of any legal regulated rent for each regulated unit in the building. Prior to removal, the service elevator had been a required building service. And now tenants had no other elevator option if the passenger elevator was out of service.

Various Tenants of 340 West 72nd Street: DHCR Adm. Rev. Docket Nos. KW410016RT, LM410027RT (1/26/24)[5-pg. document]