Useful Life of Burners Hadn't Expired

Landlord applied for MCI rent hikes based on the installation of new burners. The DRA ruled for landlord in part, and deducted the cost of prior burners, whose useful life hadn't expired, from the total cost of the new MCI. Tenant appealed, claiming that landlord didn't get a prior useful life waiver from the DHCR and that the full cost of the new burners should be disallowed. The DHCR ruled for tenant. Since landlord didn't get a useful life waiver from the DHCR and since there was no emergency otherwise requiring replacement, Operational Bulletin 90-2 barred landlord from getting the MCI rent hike.

London Terrace Gardens: DHCR Adm. Rev. Dckt. No. QG430069RT (10/13/05) [4-pg. doc.]