Topic No. 357: Tenant Challenge of Improper General Obligation Bond Measure Passthrough
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. The landlord may pass through to tenants only 50% of the increase due to bonds approved after November 14, 2002.
In order to impose the passthrough, the landlord must give the tenant a written notice of rent increase as well as a completed Bond Measure Passthrough Worksheet. The landlord is not required to file a petition to seek approval of a Bond Measure Passthrough. However, if a tenant believes that the passthrough is improper, the tenant may file a petition for arbitration to challenge the passthrough within one year of its effective date. A Bond Measure Passthrough may be improper for one or more of the following reasons:
- The landlord has not properly calculated the passthrough;
- The passthrough is calculated using an incorrect unit count;
- The passthrough was not imposed on the tenant's anniversary date;
- The tenant was not in residence as of November 1st of the applicable tax year;
- The landlord failed to discontinue the passthrough after 12 months.
To receive a copy of the Tenant Petition form, 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 form is also available at our office.