§ 8.22.080. Rent increases following vacancies.

A.

Purpose of Section. This section sets forth how an owner may set the rents to a new tenant following vacancies. Rent increases following an owner's setting the initial rent are regulated by this Chapter.

B.

Setting Initial Rents to Tenants Without Restriction. Costa-Hawkins provides that owners may set an initial rent to a new tenant without restriction except in certain circumstances.

C.

Costa-Hawkins Exceptions. Costa-Hawkins permits an owner to set initial rents to a new tenant without restriction except where the previous tenant vacated under the following circumstances:

1.

1946 Termination of Tenancy. ("The previous tenancy has been terminated by the owner by notice pursuant to [California Civil Code § ] 1946 ...") (California Civil Code § 1954.53(a)(1)).

2.

Change of Terms of Tenancy or Rent Increase Not Permitted by This chapter. The previous tenancy was terminated following a notice of a rent increase not permitted by this Chapter. ("The previous tenancy ... has been terminated upon a change in the terms of the tenancy pursuant to [California Civil Code § ] 827, except a change permitted by law in the amount of rent or fees.") (California Civil Code § 1954.53(a)(1)).

3.

Failure to Renew Contract with Government That Limits Rent Increases. In certain circumstances, "... an owner ... [who] terminates or fails to renew a contract or recorded agreement with a government agency that provides for a rent limitation to a qualified tenant" ... "shall not be eligible to set an initial rent for three years following the date of the termination or nonrenewal of the contract or agreement". (California Civil Code § 1954.53(a)(1)(A)).

4.

Owner Agrees to Rent Restriction in Exchange for Subsidy. The owner has agreed to a rent restriction in return for public financial support. (California Civil Code § 1954(a)(1)(B)(2)).

5.

Unabated Serious Code Violations. The dwelling unit was cited for serious health, safety, fire, or building code violations at least sixty (60) days prior to the vacancy and the violations were not abated by the time the unit was vacated. (California Civil Code § 1954.53(f)).

D.

Sublets and Assignments. Under specified conditions, Costa-Hawkins permits an owner to set initial rents without restriction when a covered unit is sublet or assigned and none of the original occupants permanently reside in the covered unit. (California Civil Code § 1954.53(d)).

E.

Rent Increases After Setting an Initial Rent Without Restriction. After the owner sets an initial rent without restriction pursuant to Costa-Hawkins, the owner may only increase rent in conformance with the requirements of Section 8.22.070, based on circumstances or cost increases that arise after the beginning of the new tenancy. The owner may not increase rents based on banking, cost increases, capital improvements, or other circumstances that arose before the new tenancy began.

F.

Restrictions Where the Owner May Not Set the Initial Rent.

1.

The Just Cause for Eviction Ordinance (O.M.C. 8.22.300 (Chapter 8.22, Article II)) provides for certain restrictions on setting initial rents to new tenants and upon re-rental to former tenants.

2.

The Ellis Act Ordinance (O.M.C. 8.22.400 (Chapter 8.22, Article III)) provides for certain restrictions on setting initial rents to new tenants and upon re-rental to former tenants.

G.

Initial Rent to New Tenant Where Owner Not Entitled to Set Initial Rent. An Owner may not set an initial Rent to a new Tenant that is more than the lawful Rent that had been charged to the previous Tenant on the date that Tenant vacated, plus any allowable CPI Rent Adjustments and Banking rent increases, unless the Owner is authorized to charge a higher initial rent by a final decision in response to an Owner petition of which the new Tenant had been given proper notice.

H.

Rent After a Tenant Returns to a Unit Following Vacation for Repairs. Where a Tenant returns to a Unit after vacating for repairs pursuant to a notice from the Owner, or an order from the City or other government agency, the Owner must petition the Rent Adjustment Program to impose any Rent increases above the lawful Rent on the date the Tenant vacated the unit for the repairs, other than for any allowable CPI Rent Adjustments and Banking rent increases.

(Ord. No. 13418, § 1(Exh. A), 2-7-2017; Ord. 12538 § 1 (part), 2003; Ord. 12399 (part), 2002)