Customized Heater and Air-Conditioner Units Qualify

Landlord applied for MCI rent hikes, based on the installation of new heater/air-conditioner units. The DRA ruled against landlord. Landlord appealed, and the DRA then reconsidered landlord's application. The DRA ruled that the heater/air conditioner units were custom-designed and, therefore, qualified as MCIs. Tenants appealed. The DHCR ruled against tenants. Under certain circumstances, customized heater/air-conditioner units qualify as MCIs. Landlord met those requirements. Given the nature and extent of the work done, the fact that a few tenants may have had minor difficulty with their installations didn't bar the rent increase. Landlord must, however, fix any units that aren't working correctly.

353 East 83rd Street: DHCR Adm. Rev. Dckt. Nos. FL 410482-RT et al. (11/12/93) [6-page document]