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March 06, 2001

March 06, 2001


 
   
THE SAN FRANCISCO RESIDENTIAL RENT STABILIZATION & ARBITRATION BOARD

PROPOSED AMENDMENTS TO RENT BOARD RULES AND REGULATIONS §1.13 PURSUANT TO NOVEMBER 2000 PROPOSITION H, TO BE EFFECTIVE ONLY IF THE STAY OF IMPLEMENTATION OF PROPOSITION H ORDERED ON DECEMBER 20, 2000 IN QUIGG VS. CITY AND COUNTY OF SAN FRANCISCO, ET AL., SUPERIOR COURT CASE NUMBER 316928, IS NO LONGER IN EFFECT.

Section 1.13 Capital Improvements

(Amended February 28, 1989)

Pursuant to November 2000 Proposition H, "Capital improvements" means those improvements which materially add to the value of the property, and appreciably prolong its useful life. or adapt it to new uses, and which may be amortized over the useful life of the improvement of the building. Capital improvements do not include normal routine maintenance and repair. (For example, the patching of a roof is not a capital improvement while the partial or complete replacement of the old roof is; repair of a foundation is considered a capital improvement and not a repair.) Repairs which are incidental to a capital improvement project, or replacement of an item normally considered a capital improvement, are also defined as capital improvements. Capital improvements otherwise eligible are not eligible if the landlord charges a use fee such as where the tenant must deposit coins to use a landlord-owned washer and dryer. Capital improvements shall be classified as either (a) seismic retrofit work or (b) work that is not seismic retrofit work ("non-seismic capital improvement work"). Capital improvements classified as seismic retrofit work shall be treated differently than capital improvements classified as work that is not seismic retrofit work, in accordance with Section 37.3(a)(3) of the Rent Ordinance.

(a) Seismic retrofit capital improvement work shall consist of work performed to improve a property’s resistance to seismic motions, whether or not performed in accordance with Building Code Chapter 16 (formerly Chapters 14 and 15), including bolting, bracing, shearwalling or other seismic strengthening work. A landlord may impose rent increases for seismic retrofit capital improvement work without regard to a maintenance-of-net-operating-income fair return analysis, provided such costs are certified pursuant to Rules and Regulations Sections 7.10 -7.17.

(b) All other capital improvement work, including but not limited to rehabilitation and energy conservation measures, shall be considered non-seismic capital improvement work. A landlord may impose rent increases for non-seismic capital improvement work only to the extent necessary to provide a constitutionally required fair return on the property under the maintenance-of-net-operating-income standard of fair return, provided such costs are certified pursuant to Rules and Regulations Sections 7.10 -7.24. For purposes of certifying the costs of non-seismic capital improvement work, the following definitions shall be used:

(1) Net Operating Income. Net Operating Income equals Gross Income less Operating Expenses as defined below.

(2) Gross Income. Gross Income equals the following and includes, but is not limited to, income from residential, commercial, vacant and owner-occupied units on the property:

(i) Gross Rents, computed as gross rental income of all units on the property, calculated as if there were 100% paid occupancy;

(ii) Minus uncollected and unreimbursed rents due to vacancy or bad debts if the vacancy or bad debt is beyond the landlord's control or vacancy unless the unit is kept vacant without intent to relet;

(iii) Plus income from laundry facilities, garage, parking, and storage and insurance proceeds;

(iv) Plus all other income or consideration received or receivable for or in connection with from the property.

 

(3) Operating Expenses.

(i) Operating expenses shall include the following expenses for all units on the property, including but not limited to residential, commercial, vacant and owner-occupied units:

(A) Real property taxes;

(B) License and registration fees required by law to the extent the fees are not otherwise paid by tenants;

(C) Utility costs paid by the landlord, including gas, electricity, water, sewer, cable, and refuse removal;

(D) Insurance expenses;

(E) Management expenses, including necessary and reasonable advertising, accounting and other managerial expenses;

(F) Reasonable professional expenses, fees and costs, which shall include attorney fees, legal fees and costs incurred in connection with good faith attempts to determine or recover rents owing and good faith unlawful detainer actions not in derogation of applicable law, to the extent those amounts are not recovered collected. If it is determined that these expenses will not occur annually, the Administrative Law Judge may amortize those expenses;

(G) Normal routine repair and maintenance expenses, including repair and/or replacement of parts of all standard services such as elevator, electrical and plumbing, and repair or replacement of furnished appliances;

(H) The amortized cost of capital improvements with interest, exclusive of uncompensated labor, calculated pursuant to Rules and Regulations Sections 7.12, 7.14, and 7.15, whether or not the capital improvements were previously certified by the Rent Board;

(I) Uncompensated labor pursuant to Rules and Regulations Section 7.13. The landlord has the burden of proving that all uncompensated labor was performed in connection with either administrative-management tasks, repair and maintenance tasks, or capital improvement work; and

(J) Other reasonable expenses as determined by the Board or the Administrative Law Judge.

(ii) Operating expenses shall not include:

(A) Avoidable and uUnnecessary expense increases since the base year;

(B) Mortgage principal and interest;

(C) Any penalties, fees or interest assessed or awarded for late payments or violation of this or any other law;

(D) Depreciation of the property; or

(E) Any expense for which the landlord has been actually reimbursed by any security deposit, insurance settlement, judgment for damages, settlement, or any other method.

(4) Consumer Price Index.

Consumer Price Index (CPI) is the CPI for all urban consumers for the San Francisco-Oakland Metropolitan Areas (All Items), provided by the U.S. Department of Labor.

 

PROPOSED AMENDMENTS AND ADDITIONS TO RENT BOARD RULES AND REGULATIONS PART 7 PURSUANT TO NOVEMBER 2000 PROPOSITION H, AMENDING SECTIONS 7.10, 7.12 AND 7.13 AND ADDING NEW SECTIONS 7.19 THROUGH 7.24, TO BE EFFECTIVE ONLY IF THE STAY OF IMPLEMENTATION OF PROPOSITION H ORDERED ON DECEMBER 20, 2000 IN QUIGG VS. CITY AND COUNTY OF SAN FRANCISCO, ET AL., SUPERIOR COURT CASE NUMBER 316928, IS NO LONGER IN EFFECT.

 

PART 7 LANDLORD APPLICATIONS FOR CERTIFICATION OF CAPITAL IMPROVEMENTS, REHABILITATION, AND/OR ENERGY CONSERVATION WORK PURSUANT TO NOVEMBER 2000 PROPOSITION H.

Section 7.10 Filing

(Amended August 29, 1989 by correction May 1, 1990; June 18, 1991; subsection (d) added on January 31, 1995; amended March 7, 1995; repealed and adopted April 25, 1995; effective February 1, 1995)

(a) Those landlords who seek to pass through the cost of capital improvements, rehabilitation and/or energy conservation work pursuant to the November 2000 Proposition H, whether for seismic retrofit work or for non-seismic capital improvement work, must file an application (petition) for certification on a forms prescribed by the Board. and accompanied by the appropriate filing fee as set forth in Section 3.10(b) above. For petitions filed Oon and after December 21, 2000, only the landlord who paid for seismic retrofit work may file a petition for certification of the costs of the seismic retrofit work.

(b) Information to Accompany Landlord’s Application

(1) The application for certification of seismic retrofit capital improvement costs shall be accompanied by: (1) (i) copies of the application in sufficient number to distribute to each of the tenants named in the application, plus one additional copy for the estimator; (2) (ii) two copies of all claimed invoices, signed contracts, and cancelled checks substantiating the costs for which the landlord has not been compensated by insurance proceeds; (3) (iii) if claim is made for uncompensated labor, the application shall specify the work performed and include a copy of a log of dates and times when on which the work was performed; and (4) (iv) copies of proof of compliance with the Department Bureau of Building Inspection for any work claimed for energy conservation measures or other work for which proof of compliance is required by State or local law.

(2) The application for certification of non-seismic capital improvement costs shall be accompanied by: (i) copies of the application in sufficient number to distribute to each of the tenants named in the application, plus one additional copy for the estimator; (ii) two copies of all claimed invoices, signed contracts, canceled checks, or other documents substantiating the costs of all claimed Operating Expenses, including the costs of capital improvements, in both the Base Year and the Current Year; (iii) if a claim is made for uncompensated labor, the application shall include a copy of a log of dates and times when the work was performed, and shall specify the administrative-management task, repair or maintenance task, or capital improvement work performed, and, where applicable, specify the unit for which the work was done; (iv) copies of proof of compliance with the Department of Building Inspection for any work claimed for energy conservation measures or other work for which proof of compliance is required by State or local law; and (v) two copies of documents substantiating the Gross Income in both the Base Year and the Current Year.

(c) Time of Filing Application and Notice

The landlord must file an application before giving legal notice of a rent increase. The notice shall be in conformance with the requirements set forth in Section 4.10 above and shall further include the dollar amount requested based on the amortization of the work performed. This increase shall be inoperative unless and until the application is approved by the Administrative Law Judge. Any amounts approved by the Administrative Law Judge shall relate back to the effective date of the legal notice, if given.

If the landlord sends a notice of rent increase based on capital improvements without first filing an application for certification, the increase shall be null and void. In order to be able to pass through these amounts, an application must first be filed and then a new notice sent.

(d) Special Provision for Owners of Proposition I Affected Units

Landlords of Proposition I Affected Units may petition the Board to certify the cost of capital improvements, rehabilitation and/or energy conservation work in accordance with, and subject to, the rules and procedures set forth in Part 7 of these Rules and Regulations and Section 37.7 of the Rent Ordinance. Events before the unit was subject to the Rent Ordinance may be considered. Petitions for Proposition I Affected Units based upon capital improvements that are pending as of, or filed within six months of, April 25, 1995 may, at the request of the landlord, be treated as if filed on May 1, 1994; provided, however, that the actual date of filing shall be used to determine the effective date of any rent increase pursuant to Section 7.10(c) above.

Section 7.12 Allocation of Cost of Improvements or Work to Individual Units

(Amended March 14, 1989; August 29, 1989; June 18, 1991; Subsection (b) amended October 20, 1998)

(a) The cost of capital improvements, rehabilitation, and/or energy conservation work for which the landlord has not been compensated by insurance proceeds shall be allocated to each unit in the building. The method used for cost allocation shall be that which most reasonably takes into account the extent to which each unit benefits from the improvements or work. Methods which may be appropriate, depending on the circumstances, include allocation based on the square footage in each unit, allocation based on the rent paid for each unit, and equal division among all units. Where the improvements do not benefit all units, only those benefited may be charged the additional rent. For example, if a new roof were installed, the rents of all units in the building may be raised to cover the cost. But if, in addition, a new floor had been installed in one unit, that unit would be charged its proportionate share of the roof cost plus the cost of the new floor. Costs attributable to units where the rent cannot be raised (because of a lease restriction, owner occupancy, or other reason) may not be allocated to the other units. Costs attributable to routine repair and maintenance shall not be certified but shall be considered part of the costs of operating and maintenance.

(b) Effect of Vacancy on Rent Increases Requested for Seismic Retrofit

Capital Improvements Work

If a unit becomes vacant and is rerented after completion of seismic retrofit capital improvements, rehabilitation, and/or energy conservation work listed in an application for certification, no additional rent will be allowed on the unit based on the improvements or work since the landlord has the opportunity to bring the unit up to market rent at the time the unit is rerented. This section also applies to those units rented during the construction period for the project of which the work is a part, as stated in the permit(s), contract document(s), and/or as shown by other relevant evidence, or rented within six months of the commencement of work for which an application for certification is filed, provided that ownership has not changed in that period.

(c) Amortization Periods

For petitions filed on or after December 21, 2000, costs for seismic retrofit capital improvement work certified under Section 37.7 shall be amortized on a straight line basis over a twenty-year period. For petitions filed before December 21, 2000, costs for seismic retrofit capital improvement work certified under Section 37.7 shall be amortized on a straight line basis over a ten-year period. Costs for non-seismic capital improvement work shall be amortized on a straight line basis over a seven or ten-year period depending upon which category described below most closely relates to the type of improvement or work and its estimated useful life.

SCHEDULE I - SEVEN YEAR AMORTIZATION

The following shall be amortized over a 7 year period: Appliances, such as new stoves, disposals, refrigerators, washers, dryers and dishwashers; fixtures, such as garage door openers, locks, light fixtures, water heaters and blankets, shower heads, time clocks and hot water pumps; and other improvements, such as carpeting, linoleum, and exterior and interior painting of common areas. If the appliance is a replacement for which the tenant has already had the benefit, the cost will not be amortized as a capital improvement, but will be considered part of operating and maintenance expenses.

Appliances may be amortized as capital improvements when (1) part of a remodeled kitchen; (2) based upon an agreement between the tenant and landlord; and/or (3) it is a new service or appliance the tenant did not previously have.

SCHEDULE II - TEN YEAR AMORTIZATION

Major improvements to the structure of the building such as: new foundation, new floor structure, new ceiling or walls - new sheetrock, new plumbing (new fixtures, or piping,) weatherstripping, ceiling insulation, seals and caulking, new furnaces and heaters, new wiring, new stairs, new roof structure, new roof cover, new window, fire escapes, central smoke detection system, new wood or tile floor cover, new partitioning sprinkler, boiler replacement, air conditioning-central system, exterior siding or stucco, elevators, and/or additions such as patios or decks, central security system, new doors, new mail boxes, new kitchen cabinets, or sinks, shall be amortized over ten years.

(d) For decisions issued after April 10, 2000, no rent increase for seismic retrofit capital improvement work shall exceed 5% of the tenant's base rent in any twelve-month period. For decisions issued on or before April 10, 2000, no increase for seismic retrofit capital improvement work shall exceed 10% of the tenant's base rent in any twelve-month period. Except in extraordinary circumstances, to be determined by the Board on appeal, no increase under this subsection shall exceed, in a twelve-month period, ten (10%) of the tenant’s base rent or $30.00, whichever is greater. A landlord may accumulate any certified increase which exceeds this amount and impose the increase in subsequent years subject to the limitation herein.

 

 

Section 7.13 Valuation of Uncompensated Labor

Any uncompensated labor (i.e., labor performed for no remuneration of any kind) certified for seismic retrofit capital improvement work or certified as an Operating Expense under Section 1.13(b)(3)(i)(I) in connection with non-seismic capital improvement work performed on capital improvements, rehabilitation, or energy conservation work shall be valued at prevailing labor rates. The craft classification to be employed shall be that of laborer unless the uncompensated worker is licensed in the particular craft or profession for which credit is being claimed. The documentation for all uncompensated labor must include a copy of a log of dates and times when the work was performed and, where applicable, shall specify the administrative-management task, repair or maintenance task, or capital improvement work performed, and the unit for which the work was done.

[New] Section 7.19 Allowable Capital Improvement Rent Increases

(a) The Administrative Law Judge shall determine after a hearing if the landlord is entitled to a rent increase for capital improvements.

(b) For all decisions issued after April 10, 2000, a rent increase based on the costs of seismic retrofit capital improvement work shall be approved only in accordance with Section 1.13 and Sections 7.10-7.17.

(c) For all decisions issued after April 10, 2000, a rent increase based on costs of non-seismic capital improvement work shall be approved only in accordance with Section 1.13 and Sections 7.10-7.24.

(d) For all decisions issued after April 10, 2000 and before the date that November 2000 Proposition H goes into effect, the Administrative Law Judge shall issue a revised decision after giving the landlord the opportunity at a hearing to present facts demonstrating that all or a portion of the rent increases approved in the decision are allowable for one or more of the following reasons:

(1) The rent increase includes costs for seismic retrofit work as defined in Section 1.13(a);

(2) The rent increase includes costs for non-seismic capital improvement work and is necessary to provide a constitutionally required fair return as set forth in Section 1.13(b); or

(3) The application of November 2000 Proposition H would unlawfully impair a contract or deny a vested or other legal right.

[New] Section 7.20 Determination of Base Year

(a) Base Year. Base Year for purposes of this Part 7 shall mean the calendar year before a property was subject to the Rent Ordinance, or an alternate base year as provided in subsection (b) below.

(b) Alternate Base Year. If the income and/or expense data for the calendar year before the property was subject to the Rent Ordinance is not available, or for other good cause shown, the landlord may request an alternate base year. The landlord shall specify in the application the alternate base year requested and the reasons why the Administrative Law Judge should approve the alternate base year. The landlord shall bear the burden of proving that the alternate base year requested is the earliest calendar year for which income and expense data is reasonably available. It shall be rebuttably presumed that the earliest calendar year for which income and expense data is reasonably available is 1996, which is the period of time for retaining such data for the California State Franchise Tax Board as of December 21, 2000.

[New] Section 7.21 Determination of the Current Year

(a) Current Year for purposes of this Part 7 shall mean the most recent calendar year prior to the filing of the petition.

(b) For all petitions for rent increases based on costs for non-seismic capital improvement work filed through December 31, 2001, the Current Year shall be calendar year 2000. Thereafter, petitions must be filed within six (6) months of the end of any designated Current Year.

[New] Section 7.22 Determination of Net Operating Income

To determine the Net Operating Income during the Base Year, the actual Operating Expenses for the Base Year shall be deducted from the Gross Income for the base year. To determine the Net Operating Income during the Current Year, the actual Operating Expenses for the current year shall be deducted from the Gross Income for the Current Year.

[New] Section 7.23 Determination of Indexed Net Operating Income

To determine the Indexed Net Operating Income, the landlord's Base Year Net Operating Income shall be increased at the rate of forty percent (40%) of the increase in the Consumer Price Index (CPI) from the Base Year to the Current Year. Forty percent (40%) of the increase in the CPI shall be calculated by subtracting the CPI figure for December 31 of the Base Year from the CPI figure for December 31 of the Current Year, dividing the result by the base year CPI figure, and then multiplying the result by .40. That figure shall be multiplied by the Base Year Net Operating Income, and that amount shall then be added to the Base Year Net Operating Income to determine the Indexed Base Year Net Operating Income. For example, if the Base Year Net Operating Income for a four-unit building in 1978 is $10,000, the Base Year CPI for December 1978 is 65.3, and the Current Year CPI for December 2000 is 184.1, then the Indexed Base Year Net Operating Income would be $17,277.18 calculated as follows:

([(184.1 - 65.3) ÷ 65.3] X .40 X $10,000) + $10,000 = $17,277.18

[New] Section 7.24 Determination of Allowable Rent Increases for

Non-Seismic Capital Improvement Work

If the landlord's Current Year Net Operating Income equals or exceeds the Indexed Base Year Net Operating Income, no rent increase based on the costs of the non-seismic capital improvement work shall be approved. If the landlord's Current Year Net Operating Income is less than the Indexed Base Year Net Operating Income, the landlord is entitled to rent increases for the costs of the non-seismic capital improvement work in the amount necessary to maintain the Indexed Base Year Net Operating Income. Where the amount necessary to maintain the Indexed Base Year Net Operating Income is less than the total amount of the amortized costs of non-seismic capital improvement work, the allowable costs shall be approved and passed through to the tenants in the following order:

(a) unit-specific capital improvement costs with an amortization period of 7 years;

(b) unit-specific capital improvement costs with an amortization period of 10 years;

(c) capital improvements with an amortization period of 7 years which benefit more than one unit;

(d) capital improvements with an amortization period of 10 years which benefit more than one unit;

(e) capital improvements with an amortization period of 7 years which benefit all units; and

(f) capital improvements with an amortization period of 10 years which benefit all units.

 

PROPOSED AMENDMENTS TO RENT BOARD RULES AND REGULATIONS §11.25 PURSUANT TO NOVEMBER 2000 PROPOSITION H, TO BE EFFECTIVE ONLY IF THE STAY OF IMPLEMENTATION OF PROPOSITION H ORDERED ON DECEMBER 20, 2000 IN QUIGG VS. CITY AND COUNTY OF SAN FRANCISCO, ET AL., SUPERIOR COURT CASE NUMBER 316928, IS NO LONGER IN EFFECT.

 

Section 11.25 Expedited Hearings

(Added by Ordinance No. 133-92, effective June 20, 1992)

(a) Applicability. In the following cases, a tenant or landlord may obtain an expedited hearing and order:

(1) Any landlord capital improvement petition for seismic retrofit work where the proposed increase for certified capital improvement costs does not exceed 5% the greater of 10% or $30.00 of a tenant’s base rent and the parties file a signed stipulation setting forth the cost of the seismic retrofit work capital improvements on a form provided by the Rent Board;

(2) Any tenant petition alleging decreased housing services with a past value not exceeding $1,000.00 as of the date the petition is filed;

(3) Any tenant petition alleging the landlord’s failure to repair and maintain the premises as required by state and local law, provided that the tenant attaches to the petition documentary evidence showing that the unrepaired/unmaintained conditions constitute violations of applicable health or safety codes;

(4) Any tenant petition alleging unlawful rent increases where the parties file a signed stipulation setting forth the tenant’s rent history on a form provided by the Rent Board and the rent overpayments do not exceed a total of $1,000.00 as of the date the petition is filed;

(5) Any tenant or landlord petition concerning only jurisdictional questions where the parties file a signed stipulation setting forth the relevant facts.

(b) Application for Expedited Hearing and Order. In order to obtain an expedited hearing and order, the petitioner must file an application for an expedited hearing and order, including the written consent of all parties, on a form provided by the Rent Board. The application, and the applicable stipulations and documentary evidence required in subsection (a) above, must be filed at the time of filing the petition in order to obtain an expedited hearing date within twenty-one (21) calendar days of the filing of the application. Within seven (7) calendar days of the simultaneous filing of the application, stipulations and petition, a staff member shall determine whether an expedited hearing is appropriate under subsection (a) above.

(1) If an expedited hearing is found to be appropriate, an expedited hearing shall be scheduled within twenty-one (21) calendar days of the filing of the application for an expedited hearing and order. Written notice of the expedited hearing date shall be mailed to all parties at least ten (10) calendar days prior to the date of the expedited hearing. A declaration under penalty of perjury stating the date and place of the mailing of such notice and stating to whom and at what addresses the notice was sent shall be retained in the file of each case. The notice shall state the date, time and place of the hearing and generally describe what will take place, who has the burden of proof and the types of evidence likely to be useful at the hearing.

(A) Postponement of Expedited Hearing. Requests for postponement of an expedited hearing date shall be governed by Section 11.13 (Postponements) above. If an expedited hearing is postponed, it will be rescheduled at the earliest available date which may not be within twenty-one (21) calendar days of the filing of the application.

(2) If an expedited hearing is not appropriate under subsection (a) above, written notice of rejection of the application shall be mailed to the parties within a reasonable time following the filing of the application and a hearing on the petition shall be scheduled within forty-five (45) calendar days of the filing of the petition. Written notice of the hearing shall be mailed to the parties in accordance with Sections 11.10 (Time of Hearing; Consolidation) and 11.11 (Notice of Hearing; Response) above. The hearing shall be conducted in accordance with Ordinance Sections 37.7(g) (Certification Hearings) or 37.8(e) (Hearings).

(c) Late Application for Expedited Hearing and Order. If any portion of the application, written consent of all parties, required stipulations or documentary evidence necessary for obtaining an expedited hearing and order are filed at any time after the petition is filed, a hearing on the petition shall be scheduled within forty-five (45) calendar days of the filing of the petition. Prior to commencement of the hearing, the Administrative Law Judge shall determine if an expedited hearing and order are appropriate under subsection (a) above. Where an expedited hearing and order are appropriate, the Administrative Law Judge shall conduct the hearing in accordance with the expedited hearing procedures set forth in subsections (e) and (f) below, provided that all parties sign a written waiver of the right to receive an expedited hearing date within twenty-one (21) calendar days of the filing of the application.

(d) Application for Expedited Hearing and Order at the Hearing. Even if no application for an expedited hearing and order is filed prior to commencement of the hearing, the Administrative Law Judge may determine that an expedited hearing and order are appropriate under subsection (a) above and offer the parties an opportunity to file an application at the hearing and as long as the record in the case remains open. The Administrative Law Judge must fully inform the parties of their rights under the Ordinance before accepting the application.

(e) Conduct of Expedited Hearing. Expedited hearings shall be conducted in accordance with Sections 11.17 (Conduct of Hearing) and 11.22 (Personal Appearances and Representation by Agent) above. Burden of proof requirements set forth in Section 11.18 (Burden of Proof) above are applicable. All parties are entitled to legal representation or the assistance of an interpreter at any stage of the proceeding. No record of the hearing shall be maintained for any purpose.

(f) Order of the Administrative Law Judge. The Administrative Law Judge shall issue a written order deciding the petition no later than ten (10) calendar days after the hearing. The Administrative Law Judge shall make no written findings of fact. The Administrative Law Judge shall order payment or refund of amounts owing to a party or parties, if amounts are owed, within a period of time not to exceed forty-five (45) calendar days of the mailing of the order. If amounts owed are not paid or refunded within forty-five (45) calendar days, the Administrative Law Judge may order the amount(s) added to or offset against future rents.

(1) For expedited hearings conducted pursuant to subsection (a)(1) above in which the petitioner prevails, the Administrative Law Judge’s written order shall contain the date upon which a capital improvement passthrough shall become effective, the monthly passthrough amount per unit and the applicable amortization period(s).

(2) For expedited hearings conducted pursuant to subsection (a)(2) above in which the petitioner prevails, the Administrative Law Judge’s written order shall contain the nature of each substantially decreased housing service, the value of the decrease and the total amount of the past rent reduction corresponding with the decreased housing service(s). The order will also include the amount of any prospective rent reduction for a continuing decreased housing service. The order shall state under what conditions the landlord may be able to restore the rent reductions.

(3) For expedited hearings conducted pursuant to subsection (a)(3) above in which the petitioner prevails, the Administrative Law Judge’s written order shall contain the date and amount of the deferred rent increase, a specific enumeration of the necessary repairs and/or maintenance and the amount to which the rent can be increased when those repairs and/or maintenance are completed.

(4) For expedited hearings conducted pursuant to subsection (a)(4) above in which the petitioner prevails, the Administrative Law Judge’s written order shall contain the dates of each relevant rent increase, the amount of rent actually paid by the tenant, the lawful amount of rent owed by the tenant and the amount of rent overpayments.

(5) For expedited hearings conducted pursuant to subsection (a)(5) above, the Administrative Law Judge’s written order shall state whether the subject rental unit(s) is/are subject to the jurisdiction of the Rent Board.

` (g) Stay of Administrative Law Judge’s Order. The Administrative Law Judge’s written order shall be stayed for fifteen (15) calendar days from the date of mailing the order.

(h) Objection to Administrative Law Judge’s Order. Any objection to the Administrative Law Judge’s order must be received by the Rent Board within fifteen (15) calendar days of the mailing of the order unless such time limit is extended for good cause by a staff member. "Good cause" shall include, but is not limited to, the following: verified illness or death of a party which prevented the filing of a timely objection; verified absence from the party’s mailing address during the fifteen (15) calendar days following the mailing of the order; any other reason which made it impractical to file a timely objection. Mere inconvenience or difficulty in filing the objection shall not constitute "good cause." The objection to the Administrative Law Judge’s order shall be filed on a form provided by the Rent Board. The form shall state the basis of the objection, and shall be accompanied by sufficient copies to distribute to each party, along with one set of business-sized envelopes (with no return address) addressed to each party, with first class postage affixed to each envelope.

(1) Effect of Timely Objection. The timely filing of an objection will automatically dissolve the Administrative Law Judge’s order. The petitioning party may refile the petition for hearing under any other appropriate hearing procedure set forth in the Ordinance. To the greatest extent possible, the new case will be assigned for hearing to the same Administrative Law Judge who issued the dissolved order.

(2) Finality of Administrative Law Judge’s Order. If no timely objection to the Administrative Law Judge’s order is made, the order becomes final. The order is not subject to appeal to the Board under Ordinance Section 37.8(f) nor is it subject to judicial review pursuant to Ordinance Section 37.8(f)(9).

(i) Consolidation. To the greatest extent possible, and only with the consent of all parties, expedited hearings with respect to a given building shall be consolidated.

Last updated: 10/9/2009 11:26:07 AM