Topic No. 309: Special Rules for Seismic Work & Other Improvements Required By Law

For seismic work that is required by law (and other work required by laws enacted after November 14, 2002), 100% of the capital improvement cost may be passed through to the tenants, regardless of the number of units in the property. Such increases are subject to an annual limitation of $30.00 or 10% of the tenant's petition base rent, whichever is greater. The amortization period for this work is 20 years.

There is a separate capital improvement petition form for seismic work and other improvements required by law. To receive a copy of the petition, you can fax it to yourself through our Fax Back system by calling (415)252-4660 or visit our website at www.sfrb.org. The petition form is also available at our office.

The capital improvement passthrough does not become part of the tenant's base rent and must be discontinued at the end of the applicable amortization period. If the landlord fails to discontinue the passthrough at the proper time, the landlord is liable to the tenant for the overpayments.

June 2006

 

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