No MCI Rent Hike for Boiler/Burner and A/C Equipment

The DRA denied landlord’s MCI rent increase application for air conditioning equipment and a boiler/burner. Landlord appealed and lost. The building had a Con Edison steam heating system with an indefinite useful life. The DHCR’s longstanding policy has been that a public utility-supplied steam power system has no “useful life” or waiver application. A new boiler/burner isn’t required for the operation, preservation, or maintenance of a building that has a steam heat system. Landlord pointed out that, in another case, the DHCR found that the useful life of a steam heat system was 50 years. But the DHCR rejected landlord’s argument that the useful life should be 25 years in this case.

BLGD. Management Co. Inc.: DHCR Adm. Rev. Docket No. SA410049RO (3/8/17) [4-pg. doc.]