No Rent Hike for Emergency Boiler/Burner Installation

LVT Number: #26335

Landlord applied for MCI rent hikes based on boiler/burner replacement. The DRA ruled against landlord because a prior MCI increase for a boiler/burner was issued in 1997. The old unit hadn’t outlived its useful life. Landlord appealed and lost. Landlord pointed out that the old boiler malfunctioned, couldn’t be repaired, and that the new boiler was installed on an emergency basis. But landlords must request, and the DHCR must approve, a useful-life waiver before an MCI increase can be granted under such circumstances.

 

 

Landlord applied for MCI rent hikes based on boiler/burner replacement. The DRA ruled against landlord because a prior MCI increase for a boiler/burner was issued in 1997. The old unit hadn’t outlived its useful life. Landlord appealed and lost. Landlord pointed out that the old boiler malfunctioned, couldn’t be repaired, and that the new boiler was installed on an emergency basis. But landlords must request, and the DHCR must approve, a useful-life waiver before an MCI increase can be granted under such circumstances.

 

 

Fountoulis: DHCR Adm. Rev. Docket No. YF130026RO (6/23/15) [1-pg. doc.]

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