Rent Reduction Order States It Wouldn't Apply If Apartment Wasn't Rent Stabilized

Rent-stabilized tenant complained to the DHCR in 2023 of a reduction in required services because gas service to the building had been cut off. Landlord didn't answer the DRA's notice of tenant's complaint. The DRA ruled for tenant and reduced his rent after inspection confirmed that no cooking gas service was being provided in his apartment.

Landlord appealed in 2024 and lost. Landlord argued that tenant's apartment was exempt from rent stabilization because it had been vacancy deregulated. The DHCR noted that the DRA's rent reduction order stated that, "the finding of the order and determination would not be applicable if the apartment was found to not be rent stabilized." So, the DRA's order applied only to apartments that are subject to the applicable rent laws and regulations administered by the DHCR. So the DRA properly granted tenant's application for a rent reduction as its ruling was based on DHCR inspection. Landlord could commence an Administrative Determination (AD) proceeding as a basis for its request for a ruling that the apartment was exempt from rent stabilization. Or it could file an application to restore rent once gas service was restored.

LIC Apts., LLC: DHCR Adm. Rev. Docket No. MV110026RO (1/15/25)[3-pg. document]