Useful Life Requirement Waived for Unavailable Replacement Parts

March 1, 1994

LVT Number: 8592

Landlord's boiler was over 50 years old. The burner was almost 20 years old. New parts for the burner were no longer available, and landlord wanted to replace both the boiler and burner at the same time. Landlord asked the DHCR if it could get an MCI increase under these circumstances. In an opinion letter, the DHCR said probably yes. DHCR Operational Bulletin 90-2 defines the useful life of a burner as 20 years. But Bulletin 90-2 also provides for a waiver of the useful life requirement.

Landlord's boiler was over 50 years old. The burner was almost 20 years old. New parts for the burner were no longer available, and landlord wanted to replace both the boiler and burner at the same time. Landlord asked the DHCR if it could get an MCI increase under these circumstances. In an opinion letter, the DHCR said probably yes. DHCR Operational Bulletin 90-2 defines the useful life of a burner as 20 years. But Bulletin 90-2 also provides for a waiver of the useful life requirement. Landlord submitted a manufacturer's distributor's letter, stating that replacement parts for the burner were no longer available. This was grounds for waiving the 20-year requirement.

DHCR Opin. Ltr. by Nathaniel Geller (4/92) [2-page document]

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