Chimney Liner Doesn't Qualify as MCI

Landlord applied for MCI rent hikes based on installation of a chimney flue pipe replacement and related masonry work. The DRA ruled against landlord, finding that this was repair work and not a major capital improvement. Landlord appealed, claiming that the work was actually a complete replacement of the furnace and water heater exhaust system to accommodate new gas hot water heaters that would be installed soon. Landlord later said that the new flue piping was essential to the installation of the heating and hot water system that was now completed. The DHCR ruled against landlord. The installation of a chimney liner doesn't qualify as an MCI unless it is done in connection with a qualifying MCI. For the DRA to consider landlord's claim, landlord must file a new MCI application for the hot water heaters and chimney liners. If the facts warrant, and if landlord files its application within two years of completion of all parts of the claimed MCI, then landlord may get a rent hike for the work performed.

440 West 22nd Street: DHCR Adm. Rev. Docket No. TI420060RO (2/27/08) [2-pg. doc.]