Council to Consider Policy Recommendation on Ratio Utility Billing

Published on June 09, 2026

On June 16, 2026, the Alameda City Council will consider proposed updates to the Rent Ordinance that would prohibit landlords from charging fees for utilities that are not separately metered, including a ban on the use of Ratio Utility Billing Systems (RUBS). The proposal would also establish a system for landlords who are currently charging such fees to receive a one-time upward rent adjustment.

RUBS is a method some property owners or managers use to divide a building's utility costs among tenants based on factors like unit size or number of occupants. While use of RUBS is currently permitted in Alameda, an uptick in tenant concerns about unclear formulas and fairness has prompted a review of these practices and consideration of new policy options.

Earlier this year, the Rent Program made presentations at three community workshops and circulated an online survey to gather feedback from tenants, landlords and property managers on potential RUBS regulations. Staff reviewed community input, researched regulatory trends across California, and is now presenting a policy recommendation for City Council's consideration. The recommendation aims to establish frameworks that balance fairness, transparency, and practicality for both tenants and landlords.

The proposed updates would prohibit landlords from charging fees for utilities that are not separately metered for all fully regulated rental units. For existing tenancies, landlords would transition out of RUBS through a one-time petition process, allowing them to seek a rent adjustment based on documented average utility costs. The petition process would have staggered deadlines, with larger properties required to file before smaller properties. Tenants would have the right to petition if the adjustment was inconsistent with their rental agreement. Submeter installation would be added as an eligible Capital Improvement Plan (CIP) project for all fully-regulated rental properties, allowing housing providers to recover installation costs through a limited, amortized pass-through.

Furthermore, landlords still have the right to petition for a rent adjustments based on the concept of fair return. If a landlord can demonstrate that rising utility costs or other expenses are diminishing the property’s net operating income, an independent hearing officer may determine that an additional rent adjustment is warranted.

Contact the Rent Program at 510-747-7520 or rentprogram@alamedaca.gov for more information.