Useful Life of Old Boiler Hadn't Expired

Landlord applied for MCI rent hikes based on installation of a new boiler. The DRA ruled against landlord because the useful life of the prior boiler/burner hadn't expired. Landlord appealed and lost. Landlord had previously obtained an MCI rent hike for a 1994 boiler/burner installation. Under the DHCR's rules, a boiler's useful life is at least 25 years and a burner's useful life is at least 20 years. Landlord filed for the new MCI rent hike in 2006, less than 25 years after the old boiler was installed. Landlord claimed that the old boiler had to be replaced due to extensive corrosion and leakage. But landlord should have asked the DHCR for a waiver of the useful life requirement before seeking the MCI rent hike. Since landlord failed to do so, the DRA properly denied any rent increase.

Lambros D. Ballas and Associates, Inc.: DHCR Adm. Rev. Docket No. UD710008RO (1/10/07) [2-pg. doc.]