Computerized Heat Control System Doesn't Qualify as MCI

Landlord applied for MCI rent hikes based on the installation of a computerized heat control system. The DRA ruled against landlord, who appealed and lost. It is the DHCR's established position that installation of a heat control system is ordinary maintenance and repair and not a major capital improvement. It didn't matter that the Department of Taxation and Finance defined this system as a capital improvement; its definitions were different from the DHCR's. And in another case where the DHCR approved an MCI increase for a heat control system, it was installed as part of an MCI-qualifying boiler replacement.

Jarosch: DHCR Adm. Rev. Docket No. ER110018RO (11/17/17) [2-pg. doc.]