Utility Credit Set by HPD Not Subject to DHCR Jurisdiction
LVT Number: #33623
Rent-stabilized tenant complained to the DHCR that landlord failed to offer him a renewal lease on the same terms and conditions as his expiring lease. Tenant claimed that landlord took away a utility credit that was part of his vacancy lease and added an impermissible "temporary rent concession rider." The DRA ruled for tenant, finding that the utility allowance/credit included in tenant's 2021 vacancy lease must be continued in all renewal leases offered to tenant.
Landlord appealed and won. Landlord pointed out that it had advised the DRA that the building participated in a Low-Income Housing Tax Credit (LIHTC) program and pointed to previous DHCR and appeals court orders finding that the utility allowance/credit was established by HPD under a Regulatory Agreement. So, although the building was subject to rent stabilization, the disputed utility allowance wasn't subject to the DHCR's jurisdiction. The DHCR agreed and revoked the DRA's order.
44th Street Development, LLC/Robbins: DHCR Adm. Rev. Docket Nos. MV410029RO, MW410003RT (2/3/25)[3-pg. document]
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