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COURT CASE NUMBER 316928, IS NO LONGER IN EFFECT.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.