Increase Granted for Fuel Storage Tank

Landlord applied for MCI rent hikes based on an oil tank replacement. The DRA ruled for landlord. Tenants appealed and lost. Tenants claimed that the work performed was not a capital improvement but merely repair work due to ordinary wear and tear. The DHCR's regulations don't specifically list replacement of fuel storage tanks as a qualifying MCI. But the DHCR has recognized that this item may qualify as a building-wide major capital improvement. Landlord proved that the installation was for the operation, preservation, or maintenance of the building structure, and was an improvement that benefited all tenants.

Campbell: DHCR Adm. Rev. Docket No. UF910009RT (11/15/06) [3-pg. doc.]