Garage Is Required Ancillary Service

Landlord asked the DHCR for a declaration that garage service in its building was not a required ancillary service. Landlord claimed that the garage was independently operated. The DHCR ruled against landlord. Landlord appealed and lost. The DHCR's ruling that the garage operator wasn't an independent contractor was reasonable. The DHCR also reasonably interpreted Rent Stabilization Code Section 2520.6(r)(4)(xi). This provision states that a service for which there is a separate charge isn't subject to regulation if there is no common ownership between the building owner and service operator. The DHCR found that the exemption for separately operated ancillary services didn't apply to a garage formerly subject to regulation under the Mitchell-Lama law.

West 97th Street Realty Corp. v. DHCR: NYLJ, 6/2/08, p. 28, col. 5 (App. Div. 1 Dept.; Lippman, PJ, Tom, Gonzalez, Buckley, Renwick, JJ)