When an owner files an application to increase the legal regulated rents of a building or building complex on the grounds that there has been a major capital improvement, the item being replaced must meet the requirements set forth on the following Useful Life Schedule, except where the Division of Housing and Community Renewal (DHCR) has approved a waiver, as discussed below.
For major capital improvements not listed above, the owner must submit evidence with the application that the useful life of the item or equipment being replaced has expired.
An owner who wishes to request a waiver of the useful life requirement must apply to the DHCR for such waiver prior to the commencement of the work for which he or she will be seeking a major capital improvement rent increase. Notwithstanding this requirement, where the waiver requested is for an item being replaced because of an emergency, which causes the building or any part thereof to be dangerous to human life and safety or detrimental to health, an owner may apply to the DHCR for such waiver at the time he or she submits the major capital improvement rent increase application. One reason why the DHCR may grant a waiver is if the item or equipment cannot be repaired and must be replaced during its useful life because of a fire, vandalism or other emergency, or an “act of God” resulting in an emergency.
If the waiver request is denied, the owner will not be eligible for a Major Capital Improvement (MCI) rent increase. If it is granted, the useful life requirement will not be a factor in the determination of eligibility for the MCI rent increase. However, approval of the waiver does not assure that the application will be granted, as all other requirements as set forth in Fact Sheet # 24, Major Capital Improvements (MCI) Questions and Answers, must be satisfied. Furthermore, where a waiver is granted, under certain circumstances the DHCR may grant an MCI rent increase based on a cost that is lower than that claimed by the owner.
For more information or assistance, call the DHCR Rent InfoLine, or visit your Borough or County Rent Office
Queens Lower Manhattan
92-31 Union Hall Street 25 Beaver Street
6th Floor 5th Floor
Jamaica, NY 11433 New York, NY 10004
55 Hanson Place 2400 Halsey Street
7th Floor Bronx, NY 10461
Brooklyn, NY 11217
Upper Manhattan Westchester County
163 W. 125th Street 75 South Broadway
5th Floor 2nd Floor
Last updated on 08/16/13