No MCI Increase for Conversion to No. 4 Fuel Oil
LVT Number: #32358
Landlord applied for MCI rent hikes based on installation of a new fuel oil tank and fuel line. The DRA ruled against landlord, finding that the work was an interim repair rather than a building-wide improvement. Landlord appealed and lost. The work involved conversion from No. 6 to No. 4 heating oil. The DHCR acknowledged that NYC Local Law 43 of 2011 restricted the use of fuel oil grade numbers 4 and 6 in heat and hot water boilers/burners. That law requires landlords to phase out the use of No. 6 oil by July 2015 and to convert No. 4 oil to either No. 2 oil or natural gas by 2030. So the DHCR generally no longer allows for an MCI increase based on the replacement of a boiler/burner or fuel tank in NYC that uses No. 6 oil, since such use is no longer permitted. And the DHCR doesn't permit an MCI increase for conversion to No. 4 oil because such work would be in the nature of an interim repair. In addition, a DOB Vacate Order placed on the building in 2011 was still in effect and therefore barred landlord from receiving an MCI increase.
Pettit Realty Company LP: DHCR Adm. Rev. Docket No. EO110017RO (11/9/22)[2-pg. document]