No MCI Increase for Fuel Tanks Where Landlord Didn't Submit Waiver Request

Landlord applied to the DHCR for MCI rent hikes based on installation of two fuel oil tanks. The DRA ruled against landlord, who appealed and lost. When landlord filed its application in 2021, fuel tanks weren't listed in the DHCR's reasonable cost schedule for MCIs found in Operational Bulletin 2021-1. So the DRA asked landlord to submit a reasonable cost waiver request while its application was pending. Landlord sent only a contractor's letter stating that the fuel oil tanks were old and leaking and had to be replaced. Landlord didn't submit a certification by a licensed architect or engineer stating that its claimed costs were accurate and reasonable. Given the DRA's repeated request for this documentation, and landlord's failure to submit it, the MCI application was reasonably denied.

Sunnyville LLC: DHCR Adm. Rev. Docket No. KN110006RO (5/22/24)[2-pg. document]