In the previous works of Borzov and Damaskinsky [“Chebyshev-Koornwinder oscillator,” Theor. Math. Phys. 175(3), 765–772 (2013)] and [“Ladder operators for Chebyshev-Koornwinder oscillator,” in Proceedings of the Days on Diffraction, 2013], the authors have defined the oscillator-like system that is associated with the two variable Chebyshev-Koornwinder polynomials. We call this system the generalized Chebyshev-Koornwinder oscillator. In this paper, we study the properties of infinite-dimensional Lie algebra that is analogous to the Heisenberg algebra for the Chebyshev-Koornwinder oscillator. We construct the exact irreducible representation of this algebra in a Hilbert space $\mathcal {H}$H of functions that are defined on a region which is bounded by the Steiner hypocycloid. The functions are square-integrable with respect to the orthogonality measure for the Chebyshev-Koornwinder polynomials and these polynomials form an orthonormalized basis in the space $\mathcal {H}$H. The generalized oscillator which is studied in the work can be considered as the simplest nontrivial example of multiboson quantum system that is composed of three interacting oscillators.