New York State
Division of Housing and Community Renewal
Office of Rent Administration
Gertz Plaza, 92-31 Union Hall St.
Jamaica, New York 11433
Public Information: (718)739-6400
Mario M. Cuomo, Governor
Donald M. Halperin, Commissioner
Joseph A. D'Agosta, Deputy Commissioner for Rent Administration
New York City Rent Stabilization Code
< OPERATIONAL BULLETIN 90-2 (SEPTEMBER 26, 1990) >
USEFUL LIFE SCHEDULE FOR MAJOR CAPITAL IMPROVEMENTS
This Operational Bulletin is issued pursuant to Sections
2522.4(a)(1)(2)(i)(d) and (11) of the Rent Stabilization Code,
which require the DHCR to issue and to utilize, in determining an
owner's eligibility for major capital improvement (MCI) rental
increases, a useful life schedule, which is in accordance with
manufacturing industry standards. DHCR shall also set forth
conditions under which the useful life requirement may be waived.
This schedule and the conditions for waiver shall be effective
immediately.
Factors that were considered in establishing the following useful
life schedule include:
1) wear and tear and decay or decline from natural causes;
2) normal progress of the arts, economic changes, inventions
and current developments; and
3) climatic and other local conditions.
MAJOR CAPITAL IMPROVEMENTS USEFUL LIFE SCHEDULE
Replacement Item or Equipment Years - Estimated Life
1) Boilers and Burners
(a) Cast Iron Boiler 35
(b) Package Boiler 25
(c) Steel Boiler 25
(d) Burners 20
2) Windows
(a) Aluminum 20
(b) Wood 25
(c) Steel 25
(d) Storm 20
(e) Vinyl 15
3) Roof
(a) 2 Ply (asphalt) 10
(b) 3-4 Ply (asphalt) 15
(c) 5 Ply (asphalt) 20
(d) Shingle 20
(e) Single ply rubber (EPDM) 20
(molecular breakdown)
Ethlyne Propaline Diene Terpolimer
(f) Single ply Modified Bitumen 10
(g) Quarry Tile 20
4) Pointing 15
5) Rewiring 25
6) Intercom System 15
7) Mailboxes 25
8) Plumbing Repiping
(a) Galvanized Steel 25
(b) TP Copper 30
(c) Brass cold water 15
(d) Fixtures 25
9) Elevator
(a) Major Upgrade 25
(b) Controller's and Selector 25
10) Doors
(a) Apartment Entrance 25
(b) Lobby/Vestibule 15
11) Bathroom Upgrading
(a) Toilets and Valves 20
(b) Bathroom and Sinks 20
(c) Vanity 20
11a) Kitchen Upgrading 20
(a) Metal/Wood Cabinets 20
(b) Ranges 20
(c) Refrigerators 15
(d) Sinks 20
12) Water Tanks
(a) Metal 25
(b) Wood 20
(13) Waste Compactors 10
(14) Air Conditioner
(a) Individual Units/Sleeves 10
(b) Central System 15
(c) Branch Circuitry Fixtures 15
15) Aluminum Siding 25
Vinyl Siding 15
16) Catwalk 25
17) Chimney
(a) Steel 25
(b) Brick 25
18) Courtyard/Walkways
Cement 25
19) Fire Escapes 25
20) Fuel Oil Tank
(a) In Vaults 25
(b) Underground 20
21) Water Heating Units
(a) Hot Water/Central Heating 20
(b) Hot Water Heater (Domestic 10
22) Parapet
Brick 25
23) Resurface Exterior Walls 25
24) Solar Heating System 25
25) Structural Steel 25
26) Television Security 10
For major capital improvements not listed above, the owner must
submit with the MCI application evidence that the useful life of
the item or equipment being replaced has expired.
The foregoing useful life schedule establishes the period during
which an item is expected to be of service to the building or
building complex, in accordance with manufacturing industry
standards, However, compelling reasons may exist to grant an
owner's request for a waiver of the useful life requirements
stated above. Following are the conditions which an owner must
satisfy in order to be granted a waiver of the useful life
requirements:
WAIVER OF USEFUL LIFE REQUIREMENT
AUTHORIZATION TO PROCEED
Where an owner wishes to request a waiver of the useful life
requirement, the owner shall 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 (MCI) rental increase. DHCR
will approve or deny the waiver as promptly as possible.
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 MCI
application.
If the waiver is denied the owner will not be eligible for an MCI
increase. If the waiver is granted the useful life requirement
will not be a factor in the determination of eligibility for the
MCI increase. However, approval of the waiver in no way assures
that the MCI increase will be granted. The MCI application will
be subject to the same scrutiny in processing on every other
condition for eligibility and the increase may be denied if the
owner is found ineligible on any other grounds.
CONDITIONS FOR WAIVER
An owner may apply for, and the DHCR may grant, a waiver of the
useful life requirements as stated in the Useful Life Schedule if
the owner satisfactorily demonstrates that one or more of the
following circumstances existed:
1) The item or equipment cannot be repaired and must be
replaced during its useful life because of a fire,
vandalism or other emergency, or "act of God" resulting
in an emergency: or
2) The item or equipment needs to be replaced since such
item or equipment is beyond repair, or that spare parts
are no longer available, or that the required repairs
would cost more than 75% of the cost of the total
replacement of the item or equipment. Certification by
a duly licensed engineer or architect, who has no
relationship, financial or otherwise, with the owner,
shall be considered substantial proof of such
condition(s). The owner may also be required to submit
proof that the item or equipment was properly
maintained. Such Proof could include receipts for
repairs and parts or maintenance logs.
3) (a) An appropriate New York State or local
governmental agency has determined that the item
or equipment needs to be replaced as part of a
government housing program;
(b) For the owner to qualify for a New York State or
local government long-term loan or insured loan,
the governmental lender or insurer requires the
remaining useful life of the building or building
complex, as well as the component parts of such
building or building complex, to be as great as or
greater than the term of the loan agreement.
4) The replacement of an item or equipment which has
proven inadequate, through no fault of the owner,
provided that there had been no major capital
improvement rent increase for that item or equipment
being replaced
DETERMINATION OF INCREASE
In the event that DHCR determines that an installation qualifies
for a waiver of the useful life requirements, the agency may:
1) where no previous increase was granted within the useful
life of the item or equipment being replaced and the cost of
repair would equal or exceed the cost of replacement DHCR
would approve 100% of the substantiated cost of the item or
equipment, including installation;
2) where no previous increase was granted within the useful
life of the item or equipment being replaced and the cost of
repair is more than 75% of the cost of replacement DHCR
would grant a prorated increase based upon the remaining
useful life.
3) where it is determined that an item is eligible to be
replaced during its useful life, the increase granted shall
be the difference between the substantiated cost of the item
or equipment, including installation, and (a) the amount
reimbursed from other sources, such as insurance proceeds,
or any other form of commercial guarantee, etc., and (b) the
amount of any increase previously granted for the same item
or equipment either as a major capital improvement, or
pursuant to other governmental programs, if such item or
equipment has not exhausted at least 75 percent of its
useful life at the time of the installation.
4) where it is determined that an item is eligible to be
replaced even though it has not exhausted 75% of its useful
life and it was installed as part of a substantial
rehabilitation or the new construction of a building for
which the owner set initial building-wide rents, DHCR may
reduce the increase granted as a MCI by a proportion of the
remaining useful life of such item or equipment.
Notwithstanding the above, where an owner has substantially
commenced work on the major capital improvement installation
before the effective date of this Operational Bulletin, based on
prior DHCR decisions and policies, and where adherence to these
requirements or to the conditions of the waiver would create an
undue hardship, the owner's application will be determined in
accordance with those prior decisions and policies.
Elliot G. Sander
Deputy Commissioner for Rent Administration
------------------------------------------------------------
< ADDENDUM TO OPERATIONAL BULLETIN 90-2 (NOVEMBER 1990) >
USEFUL LIFE SCHEDULE
REQUIREMENT FOR APPLICATION AND EXTENSION OF THE EFFECTIVE DATE
OF THE WAIVER PROVISION OF THE USEFUL LIFE SCHEDULE
On September 26, 1990, the DHCR issued Operational Bulletin: 90-
2, Useful Life Schedule for Major Capital Improvements.
In an effort to inform owners of the issuance of the Useful Life
Schedule, the DHCR distributed it through the Owner Advisory
Committee to owner organizations and publications.
In recognition of the fact that there may be a lag between the
DHCR promulgation of the Bulletin and the time its existence
becomes general knowledge, the DHCR is providing a grace period
(September 26, 1990 February 1, 1991) before fully implementing
the waiver provisions of the Useful Life Schedule. The Bulletin,
which is effective as of September 26, 1990, requires an owner
who requests a waiver of the useful life requirements to file
before commencing work on the major capital improvement
installation. For the duration of the grace period an owner may
file a request for a waiver after the work has begun. The DHCR
will determine an owner's application for waiver in accordance
with prior decisions and policies, if an owner can demonstrate
that work was substantially commenced on the major capital
improvement prior to February 1, 1991 and adherence to the
requirements of the bulletin or to the conditions of the waiver
would create an undue hardship.
A request for a waiver should be made by sending a letter to the
MCI Unit of the DHCR explaining the circumstances and including
the necessary documentation.
Elliot G. Sander
Deputy Commissioner for Rent Administration
--------------------------------------------------------------
DHCR Operational Bulletins are issued by the New York State
Division of Housing and Community Renewal (DHCR) and update
agency administration of the rent laws.
Electronic versions of the documents on TenantNet
are for informational purposes only and there is no guarantee
they will be accepted by any court (or even DHCR) as true copies
of DHCR policy. The reader is advised to obtain true copies of
these documents from DHCR. Also see DHCR Policy Statements,
DHCR Advisory Opinions, the Rent Stabilization Code, the Rent
Stabilization Law and various Rent Control Statutes.
Every attempt has been made to conform to the original Operational
Bulletins as issued by DHCR; TenantNet makes no
representation the enclosed material is current or will be
applied as written. The reader is advised that DHCR often fails
to properly apply, interpret or enforce housing laws. Since
housing laws are complex and often contradictory, it is
recommended the reader obtain competent legal advice from a
tenant attorney or counseling from a tenant association or
community group. (rev. 3/13/96) DHCR documents
are public documents; the electronic version of such documents
have been developed by TenantNet and any added value, enhancements
and/or proprietary features are copyright 1994, 1995 and 1996 by
TenantNet. These documents may be freely distributed provided they
remain intact as herein presented, including this and the top
informational banner referencing TenantNet as the original provider.
------------------------------------------------------------
For more information or assistance. call the DHCR Rent Infoline
at (718) 739-6400, or visit your Borough Rent Office.
Queens Central Office
92-31 Union Hall St. 4th Fl.
Jamaica, NY 11433
(718) 739-6400
Bronx
One Fordham Plaza
Bronx, NY 10458
(718) 563-5678
Brooklyn
250 Schermerhorn St.
3rd Floor
Brooklyn, NY 11201
(718) 780-9246
Lower Manhattan
156 William Street
9th Floor
NY, NY 10038
(212) 240-6011, 6012
South side of 110th St. and below
Upper Manhattan
163 W. 125th St.
5th Floor
NY, NY 10027
(212) 961-8930
North side of 110th St. and above
Staten Island
350 St. Mark's Place
Room 105
Staten island, NY 10301
(718) 816-0277
Nassau County District Rent Office
50 Clinton Street, 6th Floor
Hempstead, NY 11550
(516) 481-9494
Westchester County District Rent Office
55 Church Street, 3rd Floor
White Plains, NY 10601
(914) 948-4434
Rockland County District Rent Office
94-96 North Main St.
Spring Valley, NY 10977
(914) 425-6575
Albany Regional Office
119 Washington Avenue
Albany, NY 12210
(518) 432-0596
Buffalo Regional Office
Ellicot Square Building
295 Main St., Room 438
Buffalo, NY 14203
(716) 856-1382
------------------------------------------------------------
