New Regulations re Water Revenue Bond Passthroughs

New Regulations re Water Revenue Bond Passthroughs

 

After a public hearing on July 19, 2005, the Rent Board Commissioners unanimously approved proposed regulations to implement Rent Ordinance Section 37.3(a)(5)(B), which allows landlords to pass through to tenants 50% of the water bill charges attributable to water rate increases resulting from issuance of water system improvement revenue bonds authorized by voters at the November 5, 2002 election (Proposition A). New Rent Board Rules and Regulations Section 4.14 sets forth the procedures for imposing the passthrough and new Section 10.14 provides procedures for a tenant to challenge an improper water revenue bond passthrough. Like general obligation bond passthroughs, the water revenue bond passthrough does not require a landlord petition. The amount attributable to the revenue bonds (and therefore subject to the 50% passthrough) will be listed as a separate line item on water bills beginning July 1, 2005. For convenience, the landlord may want to wait to calculate and impose the passthrough on an annual basis. The new regulations are effective July 20, 2005, and a water revenue bond passthrough worksheet will be available from the Rent Board by September 1, 2005.