No MCI Rent Hike for Heating System Conversion

Landlord applied for MCI rent hikes based on the conversion of a centralized oil heating system to a localized gas heating system. Landlord's proposal stated that the work would involve the installation to apartments of 42 boilers and 42 gas hot water heaters with piping to 42 meters complete with controls, circulator, flow valves, and smoke pipe to the existing chimney. The DRA ruled against landlord, finding that the building already had a heating system in place and that landlord went ahead with conversion of the heating system without prior approval from the DHCR. Landlord appealed and lost. In a prior ruling, the DHCR denied landlord's application to change the heating service by replacing the central heating with individual apartment-based heating units. Landlord now sought an MCI rent hike for what was really a substitution of essential services. The DRA properly denied landlord's MCI application.

Shurin: DHCR Adm. Rev. Docket No. VD710030RO (9/19/07) [3-pg. doc.]