Cost of Boiler/Burner Disallowed from MCI

LVT Number: #20569

Landlord applied for MCI rent hikes based on the installation of a new heater and furnace. The DRA ruled for landlord in part. The DRA deducted the cost of a replaced boiler/burner from the total cost because landlord had gotten a prior MCI rent hike for a boiler/burner and its useful life hadn't expired. Landlord appealed, claiming that the old furnace had broken down completely and was beyond repair. The DHCR ruled against landlord. Landlord didn't seek a waiver of the useful-life requirement before starting the MCI work.

Landlord applied for MCI rent hikes based on the installation of a new heater and furnace. The DRA ruled for landlord in part. The DRA deducted the cost of a replaced boiler/burner from the total cost because landlord had gotten a prior MCI rent hike for a boiler/burner and its useful life hadn't expired. Landlord appealed, claiming that the old furnace had broken down completely and was beyond repair. The DHCR ruled against landlord. Landlord didn't seek a waiver of the useful-life requirement before starting the MCI work. So DHCR had no opportunity to determine whether the useful-life requirement for the boiler/burner should be waived.

440 West 22nd Street: DHCR Adm. Rev. Docket No. VL420014RO (4/16/08) [3-pg. doc.]

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