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Rent Stabilization Board
Rent Stabilization Board

1274.5 HIstorically Low Rents: Phase-In for Limited Income Tenants 

(1) Eligibility Standard.

(a) The Rent Increase Phase-In authorized by this section shall apply only to rent increases implemented pursuant to Regulation 1113 or Regulation 1280.

(b) Increases shall be subject to this section for so long as: the monthly rent allowed under this regulation exceeds one-twelfth of 30% of the household's annual gross income as published for Section 8 of the United States Housing Act of l937; and at least one tenant who resided in the affected unit at the date the landlord filed a petition under Regulation 1280, or, with respect to an increase under Regulation 1113, who resided in the affected unit on the date the landlord first increased the rent under that regulation, continues to reside there, and either:

(i) that tenant receives general assistance pursuant to California Welfare & Institutions Code Sections 17000 et seq., Aid to Families with Dependent Children, Supplemental Security Income or Social Security Disability Insurance; or

(ii) the household's income is less than the low (80% of AMI) income limit for a household of the applicable size published by the Department of Housing and Urban Development for the Oakland-Fremont, CA HUD Metro FMR Area. The Executive Director or his or her designee shall make available, as an appendix to this regulation or by some other means, the applicable income limits.

(c) Prior to January 1, 1992, the amount of a rent increase authorized by Regulation 1113(5) shall be limited to 10% of the tenant's actual rent prior to the Regulation 1113 adjustment, provided the tenant gives notice of qualification for this Rent Increase Phase-In, as described in subsection(3)(a) If the first phase of a rent increase limited by this subsection is implemented prior to January 1, 1992, no increase may be implemented during calendar year 1992 under Regulation 1113 and/or Regulation 1280 unless the increase is necessary to equal the increase allowed under subsection(1)(d) below.

(d) On or after January 1, 1992, increases subject to this section implemented during any calendar year shall be limited to the greater of:

(i) ten percent (10%) of the lawful rent ceiling in effect on September 1 of the prior calendar year; or

(ii) the amount which increases the rent to 30% of one-twelfth of the household's annual gross income as published for Section 8 of the United States Housing Act of 1937. For purposes of this section, income is defined to include only the following categories: wages, salaries, and other monetary compensation; business and professional income; interest and dividends; income received as beneficiary of a trust; periodic payments such as social security, retirement funds, pensions, annuities, and royalties; payments in lieu of earnings, such as unemployment and disability; welfare assistance; alimony and child support. Earned income of household members under the age of eighteen is not income for purposes of this regulation.

(e) Increases in years subsequent to the year in which a household first qualified for the Rent Increase Phase-In and during which such household remains eligible shall be limited to ten percent (10%) of the sum of: the lawful rent ceiling in effect on September 1, 1991 and any Regulation 1113 and/or Regulation 1280 rent increases permitted to be implemented after October, 1991.

(2) Grounds for Disqualification.

(a) A household shall be disqualified from the Rent Increase Phase-In if any member of the household over the age of eighteen and under the age of sixty-five was claimed as a dependent on the federal or state income tax return for the most recently completed tax year of any person whose principal residence is not the household in question unless the eligibility of a household is based upon subsection (1)(b)(i).

(b) No tenant or household shall qualify for the Rent Increase Phase-In if the household occupying the unit in question contains less than one person for each bedroom, unless at least one tenant in the household is disabled as defined by the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) or is over the age of 65. A bedroom, for purposes of this regulation, shall include a room intended for sleeping which conforms to the provisions of Chapter 5 of the Uniform Housing Code, being not smaller than seventy (70) square feet in floor area with a ceiling height not less than seven (7) feet six (6) inches.

(3) Determination of Eligibility.

(a) To obtain a Rent Increase Phase-In, a tenant must mail to the landlord and file with the Board, within twenty (20) days after service of the rent increase notice, a statement that the tenant's household qualifies for the phase-in. Unless the landlord files a written objection with the Board within ten (10) days of receipt of the tenant's statement, the Rent Increase Phase-In shall become effective.  If a landlord files a timely, written objection with the Board, the tenant shall be required to complete and file a Declaration of Household Income, on a form supplied by the Board. The Executive Director or his or her designee shall thereafter administratively determine if the household qualifies based upon the information supplied in the Declaration. Refusal to supply information verifying income may be grounds for disqualification.  After a tenant gives notice of the household's eligibility and until the administrative determination of eligibility, the rent increase shall be limited pursuant to subsection(1). If it is determined that a household does not qualify for the Rent Increase Phase-In or has underpaid rent pursuant to this subsection, the tenant(s) shall be liable for the amount of the rent increase which was not paid.  A landlord or tenant who objects to the determination of the Executive Director or his or her designee, may appeal the determination by filing an individual petition with the Board no more than fifteen (15) days after the administrative determination, pursuant to the applicable provisions of Chapter 12 of these Regulations.

(b) Eligibility for application of this section to a rent increase under Regulation 1280 shall be determined consistently with the terms of that regulation.

(c) If a landlord alleges in writing on a form supplied by the Board that a unit no longer qualifies for the phase-in, in whole or part, the Executive Director or his or her designee shall determine whether the unit qualifies. A party may contest this determination by filing a petition with the Board pursuant to Chapter 12 of these Regulations. The petition must be on a form approved by the Board and filed within fifteen (15) days of the mailing of the determination.

(4) Relation to Other Rent Increases. The limitation of this section shall apply only to rent increases authorized under Regulation 1113 or Regulation 1280. Where rent increases are authorized under both Regulation 1113 and Regulation 1280, the limitation of this section shall apply to the total of the two increases provided the tenant had timely applied for limitation for both increases pursuant to this section. Other rent increases authorized for the same units during the same year shall be subject only to subsection (B) of Regulation 1274.

[Effective Date 9/19/19.]   

  

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