Rent Board to Hold Public Hearing on December 10, 2019 on Amendment to its Rules and Regulations re Operating & Maintenance Petitions

Effective July 15, 2018, Rent Ordinance Section 37.8 was amended to limit consideration of increased debt service and/or property taxes following a change of ownership, as well as management expenses, when a landlord seeks to increase the tenants’ rents based on increased operating and maintenance expenses. The legislation states that for petitions filed on or after December 11, 2017, where the landlord purchased the property on or before April 3, 2018, the Rent Board can only consider increased debt service and/or property taxes if the landlord demonstrates that it had “reasonably relied” on its ability to pass through those costs to the tenants at the time of the purchase.

At their meetings on September 10, 2019, October 8, 2019, November 4, 2019, and November 12, 2019, the Rent Board Commissioners considered possible amendments to Rules and Regulations Sections 6.10 to clarify the standard for determining whether the landlord met its burden of proving it had “reasonably relied” on the ability to pass through increased debt service and/or property tax costs to the tenants at the time of the purchase.

At their November 12th meeting, the Commissioners voted to hold a public hearing on two proposed versions of the amendments to Rules and Regulations Section 6.10, identified as “Draft 1 - Version #3” and “Draft 1 - Version #4". The public hearing will be held on December 10th, 2019 at 25 Van Ness Avenue, Room 70 (Lower Level) in San Francisco and begins at 7:00 p.m.

Interested parties may attend the public hearing to comment on the proposed amendments to the regulation and/or submit written comments. Written comments should be received at the Rent Board’s office no later than noon on December 5th, 2019 so that the Commissioners have adequate time to review them prior to the public hearing (16 copies, please). Written comments may also be submitted at the hearing.