Gas Piping Was Other Work Necessary to Installation of New Boiler/Burner System

Landlord applied for MCI rent hikes based on installation of a gas/oil burner, chimney, and new roof. The DRA ruled for landlord in part but disallowed the claimed cost for installation of gas piping to deliver natural gas to the MCI-qualifying burner. Landlord and one tenant both appealed. Tenant claimed that there were outstanding HPD immediately hazardous "C" violations in her apartment for lead paint and that the new roof leaked. The DHCR ruled against tenant because she didn't raise these claims before the DRA and HPD's database revealed no lead-based paint violations in tenant's apartment.

The DHCR ruled for landlord, who claimed that installation of the gas piping, gas sleeve, meter rig, and hookup of the new gas train was required for the new gas/oil burner to use natural gas, and the claimed cost should've been included in the approved MCI amount. The DHCR agreed that this constituted "other necessary work directly related" to the MCI-qualifying burner/boiler installation. Since enactment of NYC Local Law 43 of 2010, DEP required building owners to discontinue the use and to convert the fuel source for boiler/burner systems. It therefore is DHCR's position that the cost of converting #6 or #4 fuel oil to natural gas and/or #2 fuel oil is only an MCI eligible expense when done in conjunction with the installation of a qualifying burner. 

Novy/LSC Enterprises: DHCR Adm. Rev. Docket Nos. GP430036RT, GQ430006RO (7/19/23)[4-pg. document]