Topic No. 330: Bond Measure Passthroughs
A landlord may pass through to tenants 100% of the increase in the landlord's property tax bill resulting from the repayment of general obligation bonds approved by the voters between November 1, 1996 and November 30, 1998. For general obligation bonds approved by the voters after November 14, 2002, the landlord may pass through 50% of the property tax increase resulting from repayment of these bonds, provided that the rent increase is disclosed and approved by the voters.
The landlord is not required to file a petition with the Rent Board for approval of the Bond Measure Passthrough. However, the landlord must use the Bond Measure Passthrough Worksheet in order to calculate the passthrough. To impose the passthrough, a copy of the completed Worksheet must be provided to the tenant in addition to a written notice of rent increase. To receive a copy of this year's Bond Measure Worksheet, 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 Worksheet is also available at our office.
Only tenants in residence as of November 1st of the applicable tax year are eligible for the Bond Measure Passthrough. The passthrough must be imposed at the time of the annual rent increase, on the tenant's rent increase anniversary date. It shall not become part of the tenant's base rent, and it must be discontinued after 12 months.
A landlord may elect to pass through the property tax increase attributable to the repayment of bonds as part of an Operating and Maintenance Expense Petition instead of calculating a separate Bond Measure Passthrough. In such cases, the landlord must elect one or the other method, but may not choose both.
Bond Measure Passthroughs may be "banked" and imposed in future years, provided that the applicable Bond Measure Worksheet is completed for each banked passthrough and attached to the notice of rent increase. There is a different Worksheet for each tax year, since the percentage of the property tax rate attributable to repayment of general obligation bonds varies from year to year. All of the prior Worksheets are available on our website at www.sfrb.org.
A tenant may file a petition for an arbitration hearing at the Rent Board to challenge an improper Bond Measure Passthrough. In such a hearing, the landlord shall have the burden of proving the accuracy of the Bond Measure Passthrough calculation. Such petitions must be filed within one year of the effective date of the passthrough.