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OaklandRedevelopmentSuccessorAgencyandtheCityCouncil,2014-03-18,"*
Concurrent Meeting of the
Meeting Minutes
March 18,2014
Oakland Redevelopment
Successor Agency and the City
Council
S-12.1
Subject:
Amendments To Capital Improvement Regulations
From:
Department Of Housing And Community Development
Recommendation: Adopt The Following Pieces Of Legislation:
1) A Resolution Approving An Amendment To The Rent Adjustment Program Regulations
Revising Regulation 10.2.3 (2)(3) (Appendix A) To Allow Amortization Periods Up To 20
Years, To Impose A 10 Percent Cap On Any Capital Improvement Pass Through In A
12-Month Period, And To Require That Owners File A Petition For A Capital Improvement
Rent Increase; And
13-0341
Councilmember Schaaf moved, seconded by Vice Mayor Reid, to schedule for
consideration by the City Council at its meeting on April 22, 2014 the proposed
amendments to the Rent Adjustment Ordinance and its Regulations set forth
below and directed Staff to prepare the appropriate amendment language,
legislation, and reports:
I.
Maximum 10% Annual Cap on All Rent Increases*
a.
Five (5) years is basic (default) amortization, unless it needs to be extended
by whatever number of years necessary to maintain 10% maximum rent
increase on a unit by unit basis. Since pass-thru amount for general Capital
Improvement is same for each unit in building, each unit may have a different
amortization period (e.g., lower rent units would have a longer payoff period).
b.
To prevent a 'piling-up' loophole, no combination of increases can exceed
30% within a 5-year period.
* *In event the CPI rent adjustment exceeds 10%, then the CPI rent adjustment
may be given as rent increase but no other pass through are allowed or is
necessary to meet the Constitutional and fair return requirements.
II. Enhanced Noticing Requirements for all Capital Improvements
a. After work is completed (as presently), Landlord will prepare and submit
(1) Notice of Rent Increase (2) RAP Notice - includes important information
about your rights and how to challenge the increase (3) Summary of Capital
Improvements Proposed for Pass-Thru, with improvements and costs listed by
category, date improvements were completed and paid for, start and end date of
rent increase and removal from tenants' rent.
b. The set of 3 documents will be filed with the Rent Program, and served in
advance of rent increase on each tenant affected by the capital improvement.
c. Failure of Landlord to provide the required set of documents invalidates the
City of Oakland
Page 18
Printed on 4/2/14",18,OaklandRedevelopmentSuccessorAgencyandtheCityCouncil/2014-03-18.pdf