MCI Increase Granted for Converting Fuel Source

Landlord applied for MCI rent hikes based on exterior restoration with related consultant services, as well as a heating system conversion. The DRA ruled for landlord, granting the rent increases. Tenants appealed and lost. Among other things, they argued that the room counts for both the "L" and "C" lines were incorrect, the conversion of the heating system wasn't an MCI, and there was no contractor affidavit.  

The DHCR found no changes in room counts after comparing an earlier MCI application indicating there were no changes to the room counts for L or C line apartments. The heating system was converted to change the fuel source from No. 6 oil to a combined No. 2 oil/natural gas system. Under long-standing DHCR policy, such a conversion, performed in connection with a boiler/burner replacement and undertaken under NYC local law mandating the discontinued use of No. 6 fuel oil, qualifies as an MCI-eligible installation. Also, landlord's MCI application did comply with DHCR policy regarding the submission of signed contractor affirmations or proof that the landlord had made a valid attempt to obtain such signatures but was unable to do so. 

85 East End Avenue Tenants Association: DHCR Adm. Rev. Docket No. GO410022RT (1/28/22)[2-pg. document]