effective March 31, 2016
RENT INCREASES FOR UNITS SUBJECT TO RENT CONTROL
Rental units that are not exempt under Costa Hawkins (such as multi-family units built before February 1995) and have rent increase notices with an effective date of September 2, 2019 or later, are subject to the Annual General Adjustment (AGA) as laid out in Ordinance 3246. The AGA will be determined each April and will be equal to 70% of the change in the Consumer Price Index.
Under Ordinance 3246, landlords who wish to increase the rent beyond the amount allowed by the AGA may file a petition with the Rent Stabilization Program to initiate a hearing that will be administered by a hearing officer. The landlord petition will be available to enable landlords to obtain a fair rate of return on their property.
Ordinance 3246 also allows tenants to file a petition for a decrease in rent if they have experienced a reduction in housing services. This petition is also reviewed by a hearing officer.
Tenant and landlord petitions and updated program materials will soon be made available online.
Please see Ordinance 3246 for additional information on the new rent increase regulations.
RENT INCREASES FOR COSTA HAWKINS-EXEMPT UNITS
There can only be one rent increase in a 12 month period.
There is no cap on rent increases
Rent increases of 5% or less: The tenant has the option to request the Rent Review Advisory Committee (RRAC) to conduct a hearing to review the increase. A landlord with the authority to make binding decisions must attend the hearing. Hearing decisions are advisory for all rental units.
Rent increases above 5%: The landlord is required to file the rent increase notice with the Rent Stabilization Program and schedule a hearing before the RRAC. The tenant and the landlord (who must have ownership interest in the property) must attend the hearing. Hearing decisions may result in binding decisions in some cases.
Terminations of tenancy are limited to 9 allowable grounds defined under Ordinance no. 3148.
For cause terminations: No relocation assistance is owed to the tenant when the grounds for termination are for cause, such as failure to pay rent.
No fault terminations: Relocation assistance is required for all no fault terminations. The landlord must include required text in the termination of tenancy notice, file paperwork with the Rent Stabilization Program, and adhere to unit restrictions following the termination, regardless of a change in ownership.