Useful Life of Old Boiler Had Not Expired

Landlord applied for MCI rent hikes based on a new boiler installation. The DRA ruled against landlord because it had installed another boiler in 1991 and obtained an MCI hike at that time. Landlord appealed and lost. Landlord claimed that the old boiler broke down, its warranty had expired after 15 years, and the company that installed the old boiler had gone out of business. The DHCR said the useful life of a boiler is 25 years for MCI purposes. DHCR Operational Bulletin 90-2 states that if landlord seeks a waiver of the useful life requirement, it must apply to the DHCR before performing the MCI. If the work is done on an emergency basis, landlord can seek the useful life waiver when it submits its MCI application. Landlord didn't do so in this case, and its MCI application was properly denied.

215 Church Ave.: DHCR Adm. Rev. Docket No. UG220037RO (11/8/06) [3-pg. doc.]