Including Cost of Removing Old Boiler in MCI Application
Q I'm filing a major capital improvement (MCI) application with the Division of Housing and Community Renewal (DHCR) to get a rent increase for a boiler replacement and hot water heater installation I just completed. The boiler replacement was a conversion from oil to gas. Therefore, I had to get the old oil tank removed from the basement in order to get the new gas boiler inspected and certified by the city. Can I include the cost of the oil tank removal in the total MCI costs that I am filing?
A Yes. According to New York attorney William Neville, the owner should be able to include the cost in the MCI application because it was a necessary part of the installation of the new boiler system. This assumes that the new boiler system was eligible for an MCI rent increase because the old boiler needed to be replaced.
Under certain circumstances, ancillary expenses are allowed to be included in the cost of the improvement if they are directly related to the improvement. Neville believes that this is the case here.
Also, he sees no harm in including the cost. Let the owner ask for the increase, and let the DHCR decide whether the cost is covered. Items necessary for the installation of a legitimate MCI will be considered. The best thing to do is provide all the documentation related to the removal of the oil tank as part of the MCI application. The DHCR's MCI Unit can then decide.