Landlord Transferred Heat and Hot Water Billing to Tenant

Rent-stabilized tenant complained that landlord unilaterally transferred the cost of heat and hot water for his apartment to tenant without DHCR approval. The DRA ruled for tenant and reduced his rent. Landlord appealed and lost. Tenant moved into the apartment in 2008. His lease stated that landlord would supply heat, as required by law, and hot water. Before tenant moved in, landlord installed two heaters in tenant's apartment, and they were charged to tenant's utility account. Landlord also had installed a hot water tank below tenant's apartment before he moved in, and he believed he was being billed by Con Edison for the hot water. Tenant claimed that a separate boiler provided hot water to the rest of the building. The DRA found that landlord improperly transferred the cost of tenant's heat to tenant without the DHCR's approval. Landlord claimed that it assumed the cost of the gas to heat tenant's apartment in November 2009 but acknowledged that the heating units' electronic screens were powered by electricity that tenant paid for. Landlord also improperly transferred the cost of hot water to tenant without DHCR approval. Landlord claimed that it changed the electric meter back to landlord's lines in 2011, but Con Ed bills supplied insufficient proof that this was done.

201 Management LLC: DHCR Adm. Rev. Docket No. ZL20026RO (5/22/13) [6-pg. doc.]