(a) Increased space and services, new equipment, new furniture or furnishings; major capital improvements; other adjustments.
(1) An owner is entitled to a rent increase where there has been a substantial increase, other than an increase for which an adjustment may be claimed pursuant to paragraph (2) of this subdivision, of dwelling space or an increase in the services, or installation of new equipment or improvements, or new furniture or furnishings, provided in or to the tenant's housing accommodation, on written tenant consent to the rent increase. In the case of vacant housing accommodations, tenant consent shall not be required.
(2) An owner may file an application to increase the legal regulated rents of the building or building complex on forms prescribed by the DHCR, on one or more of the following grounds:
(i) There has been a major capital improvement, including an installation, which must meet all of the following criteria:
(a) deemed depreciable under the Internal Revenue Code, other than for ordinary repairs;
(b) is for the operation, preservation and maintenance of the structure;
(c) is an improvement to the building or to the building complex which inures directly or indirectly to the benefit of all tenants, and which includes the same work performed in all similar components of the building or building complex, unless the owner can satisfactorily demonstrate to the DHCR that certain of such similar components did not require improvement; and
(d) the item being replaced meets the requirements set forth on the following useful life schedule, except with DHCR approval of a waiver, as set forth in clause (e) of this subparagraph.
Useful Life Schedule For Major Capital Improvements
Replacement Item or Equipment Years - Estimated Life