Landlord Didn't Get Waiver of Useful Life Requirement for Boiler

Landlord applied to the DHCR for MCI rent hikes based on the installation of a boiler and chimney blockage. The DRA ruled against landlord, who appealed and lost. Landlord obtained a prior MCI rent increase in 2002 for a boiler installed in 2000. Since the current boiler was installed in 2016 before the expiration of the 25-year required useful life of the prior boiler, the current boiler didn't qualify for an MCI rent increase. Although landlord argued that the boiler replacement was needed because the old boiler was damaged beyond repair during the very cold winter season of 2016, landlord didn't apply for and receive prior approval for a waiver of the useful life requirement before applying for the new MCI rent increase. And, while landlord could have made an emergency request for prior approval at the time it filed the MCI application, it failed to do so. The chimney work also didn't qualify as an MCI because it wasn't a complete replacement. Landlord replaced only the chimney flues, removed a major blockage at the base of the chimney, and replaced and repointed the chimney bricks. This work didn't qualify as an MCI. 

J & A Abruzzo Family LLC: DHCR Adm. Rev. Docket No. GO110002RO (8/29/18) [2-pg. doc.]