MCI Increase Granted for Gas Piping Related to New Burner Installation

LVT Number: #32355

Landlord applied for MCI rent hikes based on installation of an oil/gas burner. The DRA ruled for landlord in part but denied costs for a gas piping installation. Landlord appealed and won. The DHCR acknowledged that, since NYC's Local Law 43 now required landlords to discontinue the use of heating oil nos. 6 and 4 in boiler and burner systems, and to convert these systems to operate using no. 2 oil or natural gas.

Landlord applied for MCI rent hikes based on installation of an oil/gas burner. The DRA ruled for landlord in part but denied costs for a gas piping installation. Landlord appealed and won. The DHCR acknowledged that, since NYC's Local Law 43 now required landlords to discontinue the use of heating oil nos. 6 and 4 in boiler and burner systems, and to convert these systems to operate using no. 2 oil or natural gas. So the DHCR allowed certain conversion costs as MCIs where the work was done according to Local Law 43 provisions, including that gas lines run to boilers/burners within property lines. In this case, a portion of the gas piping was installed by Con Edison. But landlord showed that the gas piping installation was directly related to the heating system's conversion to no. 2 oil and gas. Landlord's plumber also submitted a sworn statement to the DHCR stating that all piping was within the property line and the claimed cost didn't include any fees assessed by Con Edison. 

49 Terrace Corp.: DHCR Adm. Rev. Docket No. GP430017RO (11/16/22)[3-pg. document]

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