New Chimney Installation Qualified as MCI

Landlord applied to the DHCR for MCI rent hikes based on installation of a new chimney, boiler flue, and related work. The DRA ruled for landlord.

Tenants appealed and lost. Among other things, tenants claimed that the new chimney was non-operational, that landlord had performed electrical work without DOB permits, and that a separate DHCR order denying landlord's application to modify services was grounds to deny any MCI increase since the installation directly related to a heat pump not approved in that case by the DHCR.

The DHCR pointed out that, in order to qualify as an MCI, a chimney installation must involve a complete replacement emanating from the heating source, or a new chimney where none existed previously. The contractor's statement submitted to the DRA confirmed that the chimney work involved the complete replacement of the original chimney and that it came from a heating source. Landlord wasn't required to provide architectural drawings or municipal approvals for this work, and it wasn't required that the installation increased tenant safety. The DHCR also found that the new chimney was part of the mechanism by which tenants currently received hot water, and therefore met the definition of an MCI warranting a rent increase. 

Various Tenants of 320 East 52nd Street: DHCR Adm. Rev. Docket No. ER410018RT (5/4/22)[3-pg. document]