Landlord Gets Partial MCI Rent Hike for New Boiler

Landlord applied for MCI rent hikes based on boiler replacement, along with a new fireproof roof door with alarm. Landlord claimed that the old boiler was 18 years old and that replacement was needed to ensure heat would be provided during the upcoming winter because the replaced boiler had been leaking. The DRA ruled for landlord in part. The total cost of the work was $34,590. The DRA disallowed $17,040 because the useful life of the prior boiler/burner for which landlord obtained a prior MCI increase in 2000 had not expired. Landlord appealed and lost. Landlord claimed that the old boiler's useful life had expired. But applicable provisions of the Rent Stabilization Code, Rent and Eviction Regulations, and DHCR Operational Bulletin 90-2 stated that the useful life of a cast-iron boiler is 35 years. The DHCR noted that landlord also hadn't sought a useful-life waiver from the DHCR before filing its MCI increase application. But since the law and operational bulletin provide for a limited exception for the advance waiver request when an emergency caused danger to human life, safety, or health,  and since no tenants had objected to the increase granted, the DRA's order would stand.

314 50th Street: DHCR Adm. Rev. Docket No. XB230003RO (2/26/13) [3-pg. doc.]