Gas Piping for Oil Burner Was Necessary Work Related to MCI

Landlord applied for MCI rent hikes based on installation of several improvements. The DRA granted an increase for a new boiler/burner with related boiler room doors, boiler breeching, and a new chimney. But the DRA denied any increase for costs associated with new gas piping, swing-over piping, and the installation/removal of bypass equipment.

Landlord appealed and won, in part. Landlord argued that the excluded items were necessary work directly related to the boiler installation. The DHCR found that the cost of installing the piping to supply for the new boiler/burner is eligible to be included as part of the approved MCI. The newly installed oil/gas boiler couldn't have been made operational without the installation of new piping to provide gas supply to the new burner. The installation of gas piping from the meter to the new boiler constituted other necessary work that was directly related to the MCI-qualifying boiler/burner installation. But the DRA properly disallowed the swing-over piping. This work was performed to maintain the supply of cooking gas to the apartments. Landlord failed to show how the installation of piping relating to the supply of cooking gas was necessary for and directly related to the completion of the MCI-qualifying boiler/burner installation. The temporary bypass wasn't eligible to be included in the approved MCI costs.

1225 Park Corp.: DHCR Adm. Rev. Docket No. GQ430052RO (1/14/20) [2-pg. doc.]