Shuttle Bus May Be Ancillary Service

Several neighboring landlords considered providing a shuttle bus service to elderly tenants in their buildings at a separate charge for each trip. Landlord asked the DHCR whether this service would become a required ancillary service subject to rent stabilization. In an opinion letter, the DHCR stated that the bus service could be an ancillary service if there was a common interest between the landlords, the managing agent, or the corporate entities under their control, and the bus company. All the buildings in question had the same managing agent, and landlord corporations had some of the same principals. If the bus company was an independent contractor from the outset, the shuttle bus wouldn't be an ancillary service. If the buildings' managing agent merely sold tickets, this could raise a question---but, by itself, probably wouldn't make the service and its rates subject to rent stabilization.

DHCR Opin. Ltr. by Charles Goldstein (3/24/93) [3-page document]