Useful Life of Old Burner Hadn't Expired

Landlord applied for MCI rent hikes based on the installation of a new burner. Landlord stated that the new burner was installed in 2004, and that the old burner was 25 years old when replaced. The DRA ruled for landlord. Tenant appealed, claiming that the useful life of the old boiler hadn't expired. The DHCR ruled for tenant and revoked the MCI rent hikes. Tenant showed that in 1986, the DHCR granted a prior MCI rent hike for the installation of a burner and boiler in the building. The Rent Stabilization Code defines the useful life of a burner as 20 years. Since the prior burner was less than 20 years old when replaced, it hadn't exhausted its useful life and no rent increase was permitted. The fact that landlord misrepresented the age of the prior burner also was grounds to deny the MCI rent hikes.

435 Fort Washington Avenue: DHCR Adm. Rev. Docket No. UE430054RT (7/3/08) [2-pg. doc.]