Section 4.15 Effect of Vacancy
(Added April 25, 1995, effective February 1, 1995; renumbered July 20, 2005)
In accordance with Section 37.3(a) of the Rent Ordinance, the Rent Ordinance does not regulate initial rent levels for a new tenancy. The Rent Board does not interpret anything in Section 37.12 of the Rent Ordinance to alter this general principle. However, the Rent Board does find in the spirit of Section 37.12 an intent to preclude a landlord from setting a new Base Rent when that landlord served an eviction notice on or after May 1, 1994 and before December 22, 1994 (the "Transition Period") and the eviction would not have been permissible under Section 37.9 of the Rent Ordinance. Thus, for Newly Covered Units, if there was a proper termination of tenancy during the Transition Period, then the landlord was/is free to set a new Base Rent without limitation upon reletting the unit, and any rents paid by the new tenant that exceed the initial base rent (as defined in Section 37.12(a) of the Rent Ordinance) need not be refunded to the new tenant. If there was not a proper termination of tenancy during the Transition Period, then the landlord was/is not entitled to set a new Base Rent, and the landlord shall be required to refund any overpayments of rent in accordance with Section 37.12(b) of the Rent Ordinance. A proper termination of tenancy occurs when the tenant:
(a) terminates the tenancy voluntarily;
(b) vacates the unit as a result of an eviction that would have been permissible under Section 37.9 of the Rent Ordinance; or
(c) vacates the unit as a result of a notice of eviction served prior to May 1, 1994.