Computerized Heat Control System Isn't an MCI

February 23, 2018

LVT Number: #28225

Landlord applied for MCI rent hikes based on installation of a computerized heat control system. The DRA ruled against landlord, who appealed and lost. It's the DHCR's established position that installation of a heat control system by itself is ordinary maintenance and repair, and doesn't qualify as an MCI. While the Department of Taxation and Finance's definition of a capital improvement may be different, that had no bearing on the DHCR's MCI requirements.

Landlord applied for MCI rent hikes based on installation of a computerized heat control system. The DRA ruled against landlord, who appealed and lost. It's the DHCR's established position that installation of a heat control system by itself is ordinary maintenance and repair, and doesn't qualify as an MCI. While the Department of Taxation and Finance's definition of a capital improvement may be different, that had no bearing on the DHCR's MCI requirements. And, in this case, there was no boiler installation or other qualifying MCI that the heat control system was related to.

Jarosch: DHCR Adm. Rev. Docket No. ES110040RO (12/20/17) [2-pg. doc.]

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