C

I
TY O F
O A
K
LA
N
D
Acxenda Report
TO
Officeof
City
Manager
ATTN
Craig
G
Kocian
FROM
Officeof
Housing
and
Neighborhood Development
DATE November
29
1994
RE
RESOLUTION
AMENDINGRESOLUTION NO 63429CMS
WHICH
APPROVEDTHE
RESIDENTIALRENTARBITRATION
BOARDRULESAND
PROCEDURES
AND
APPROVINGAMENDMENTS TO CLARIFY
DEFINI
TIONS
TO AMEND THE
APPEAL HEARING
PROCESS
TO
CLARIFY
CALCULATION OF CAPITAL IMPROVEMENT
COSTS
TO CLARIFY
NOTICEPROCEDURESTO
TENANTS
ANDOTHER
TECHNICALCHANGES
AftertheEconomic
Development Community
Development
and
Housing
Committee
meeting
of
October
21994
the Residential
Rent
Arbitration Board conducted
a
regularly
scheduled
meeting
on
November
10
1994toseekadditional
input
from interested
parties
regarding
the
changes
proposed
to
the
Ordinance
andtheRules and
Procedures The Boardheldathree
hour sessionthat
provided
for
presentation
ofconcerns
by
citizens andwhich
eventually
becamea
conversation
betweenmembers oftheBoardandinterestedlandlords
and tenants
Based
upon
therecommendations
by
the
public
theBoard voted to
includetwoadditional
amendments
proposedby
landlord
representa
tives These
are as follows
Rent
Increase
Guidelines
Capital Improvements
The
existingprovisions
allowa landlordcredit
for
capital
improvements
thathave been
completed
and
paid
forwithinthe
12
month
period prior
tothe date of the
proposed
rent
increase
The recommendation
includes
a
provision
to
expand
the12
month
period
toa24month
period
to
complete
and
pay
for
capital improvements
prior
tothedate of
the
proposed
rent increase
Technical
Changes
Include
specific
references
tothedate ofthe
Comprehensive
HousingAffordability
StrategyCHAS report
usedas reference
for the overall
32
vacancy
rate in
housing
Therefore
December
22
1993will beincludedin
the
thirdWHEREAS
inthe
amended Ordinance
No9980 CMS
An additional
referencetothe
Housing Vacancy Survey
of
the
Federal
Home Loan
Bank
FHLB system
dated
August
22
1994
reflecting
a
housing
vacancy
rateof 34
will
be added
EDICD
HOUSING
NOV29
1994
Craig
GKocian
2
November
29
1994
Inaddition
tothetwonew
proposed
recommendations
the
Residen
tial Rent
ArbitrationBoard
RRAB
recommends that
priorproposed
changes
toOrdinance
No9980 CMS
andtheRules
and Procedures
be
adopted
A
proposed
Ordinance
amending
Ordinance
No9980and
proposed
changes
tothe
Rules and Procedures that include
these
amendments have been reviewed
by
the
City
Attorney
and are
attached
The
changes
reflectedinthese
documents include
1
a
reduction
of
the
annual rateof increasefrom
60totheCPIfor
the
previous
twelve
month
periodending
June
30th ofthecurrent
year
which is
32
a
moredetailed
procedure
fornoticeto
tenants 3
changes
in
methods used to
justify
increases
under
capital improvements
debt service
and rental
history banking
and
4
a
variety
of
technical
changes
tomake the
process
more efficientand fair
The RRAB
has considered these
proposedchanges
for several
months
as a
part
ofits
ongoingduty
to
hear
appeals
from
Hearing
Officer
decisions
and
recommend
policy
changes
tothe
City
Council
The
Boardalso
develops
Rules
andProcedureswhich aresubmittedto
the
Council
for
approval
The
last amendment tothe Ordinance and
Rules
andProcedures was
adopted
in
1984
Belowis a
summary
ofthe
major
proposed
recommendations
thatthe
Residential
Rent ArbitrationBoard
is
requesting
thattheCouncil
adopt
The
substantive
changes
proposed
to
the
Ordinance
are
Rent
Increase
Guidelines
Theannual rateofrent increase
shall bereducedfrom60
to
the
CPI
forthe
previous
twelvemonth
period
ending
June 30th
ofthe
current
year
which would
provide
for
arateof
30
Banking
Presently
the Ordinance
allows landlords to
carry
forward
rent increases without limit
Banking
refers torental
increases
that a
landlordhas chosen not totake
yearly
and
elects toaccumulate
and take at one time The
proposed
provision
limits
the
ability
ofthelandlordto
carry
forward
rent increases
toan amount
equal
tothreetimes
thecurrent
allowable
annual rental rate inone
year
In
noevent
may
the
landlord
carry
forward such rent increases for
more thanten
years
Notice
The
existing
rule
stipulates
that
thelandlordis
required
to
notify
tenants in
writing
oftheexistenceoftheResidential
Rent
Arbitration
Ordinance
Provisions are
being
added
to
EDICD HOUSING
NOV291994
Craig
GKocian
3
November
29
1994
specify
the
wording
as well as
the form of the
notice to
assure
the
correct
information
is
provided by
the
landlords
In
addition
a
penalty
forfailure
to
comply
is
added
The substantive
changes proposed
tothe
Rules and Procedures
are
Notice
This section
presently
provides
the
wording
tobe
incorporated
inthe
required
notice
to
notify
a
tenant oftheexistence
of
theResidential
Rent Arbitration Ordinance
This notice is
proposed
tobe
provided
in the
language
of Oakland sfive
largest
ethnic communities
A
sectionhas been
added to
provide
penalties
fora
landlord
whois
not in
compliance
with
theOrdinanceand the
Rules and
Procedures
with
regard
to
providing
noticeoftheexistence
of
the Residential
Rent Arbitration
Ordinance to
tenants The
penalty
applies
when
alandlordhas not
givenproper
noticeas
prescribed
intheRules
andProcedures The effective
dateof
any
rental increaseotherwise
permittedby
theOrdinance
will
then
be forfeitedforsix
months
Rent
Increase
Guidelines
The
Residential RentArbitration
BoardOrdinance
provides
that
the
Rules and Procedures will
allowlandlords to
justify
increases
above the
yearly
limit on
several grounds
The
Board
has made recommendations
toamend some ofthose
provi
sions
based on the actions of
the
Hearing
Officers
and the
Board since 1986
Capital Improvements
The
existingprovision
allows
a landlordto
justify
a
rental increase
above the
allowablerental ratebased
on
increased
capital improvement
costs Thesecosts
may
be
amortized
overa
period
of
five
years
Oncethese
costs
havebeenusedto
justify
arent increase
higher
than
the
allowable
rental
rate
this amount iscontinued
indefi
nitely
The
recommendation
includes
a
provision
that
afterthe
capital improvement
amortization
of
five
years
the dollar
amount of the rent increase
justified
by
capital improvement
costs
will
be
reduced from the
allowablerental
rate
The
existingprovisions
allows a
landlordcredit for
capital improvements
thathave been
completed
and
paid
forwithinthe
12
month
periodprior
to
thedateofthe
proposed
rent increase
The recommendation includes
a
provision
to
expand
the
12month
period
toa 24
month
period
to
complete
and
pay
for
capital improvements prior
tothedateofthe
proposed
rent increase This
recom
EDICD
HOU31N
NOV
29
1994
Craig
GKocian
4
November
29
1994
mendation
was a
request
by
a
landlord
representing
a
landlord
organization
Debt Service
The
existing
rule
requires
a conventional
financing
analysis
based
on
assumptions
regarding
market
rate
financing
orcosts
based on theactual
financing
The
Board is
recommending
theactual debt service
mortgage
only
be
used to
justify
a rental increase
under this
provision
Rental
History Banking
The
existing
ruleallows a
landlord
tochoose
to
carry
forward allowable
rent increases
not taken
yearly
to
takethecombined allowable rent increases
all atonce
For
example
theallowable
increases
sincethe
inception
oftheOrdinance
May
61980
are as follows
1
10 0from
May 6
1980
through
October
311983
2
80fromNovember
1
1983
through September
301986
and
3
60from October
1
1986
through
the
present
Currently
a
landlord
whohas atenant
residing
in
his her
unitsince
May
1980
and has chosen not to
take
his her
increases since
1980
the landlord
may
raiserent
by
a
total of 172 0ina
one
year
period
The
proposed
provision
limits the
rental
banking
rent in
creases tothreetimes the
currentallowableannual rate
in
any
one
year
period
In
noevent
may
alandlord
carry
such increases forward
formorethanten
years
This will
substantially
reduce
themaximumincreaseallowed
in1994
from
172 0to18 0
3
x
60
and 86 0
10
years
al
lowable
overseveral
years
Includedis
astaff
summarydetailing
theBoard s
recommendations
an RRAB annual statistical
summary
for the
year
1993 and
1994
Consumer
Price
Indexes
and letterfromtheRRAB
EDICD
HOUSIriG
N01
291994
Craig
G
Kocian 5
November
29
1994
The
changes
are
shown
intheattached
copy
oftheOrdinance
and its
Rules and Procedures
the
deleted
sections are
lined
through
and
added
sections are
red lined
An
amendment which
changes
and
modifies
Ordinance
No9980 and a
resolution which
adopts
the
amended
RulesandProcedures
havebeen
prepared
andare
recommended
for
approval
I
ANTOINETTEHE TT
Director
Attachments
APPROVED AND
FORWARDED TO
THE
ECONOMIC
DEVELOPMENT
COMMUNITY
DEVELOPMENT
ANDHOUSING
COMMITTEE
Officeof
th C3 tyManager
EDICD
HOUSINGNOV
29
ggq
STAFF
SUMMARY
The Residential Rent
Arbitration
Board
the
appellate
body
ofthis
City s
rent
arbitration
process
has submitted
the
following
proposed
amendment tothe Ordinance
No9980
and the Rules
and
Procedures
These
recommendations
derivefrom
full discussion
and
careful deliberation
by
this Board
The
Board
members have
stated
that
implementation
oftherecommendations
containedin
this
report
will
result inthe
improvement
ofthe
rent arbitration
process
The Residential
Rent
Arbitration
Board
RRAB
has
proposed
to
amend five
major
areas of the
Ordinance Rules
and Procedures
Presented
below
are therecommendations
submittedwith
background
datathatthe
Boardhas used to
prepare
them
IANNUAL
RATEOFINCREASE
The rate
of
increase
istheallowable
percentage
rental rateset
by
City
Council
Any
rental increase
that exceeds that
percentage
is
grounds
for
a tenant to
petition
to
theResidential
Rent Arbitra
tion
process
to
require
the
ownerto
justifyany
increase
inexcess
ofthat
amount The allowable
annual rateofincrease is
currently
set at6Oo
per year
This rate
has been ineffect since
October
1
1986 An
adjustment
is
necessary
toassure thattheincrease
is
more related
tocurrent conditions
intherental
housing
market
The RRAB is
recommending
a
change
in
the annual
rental
increase
rate from 60
tothe CPIfor
the
previous
twelve
month
period
ending
June
30th of the current
year
While there
has not
previously
been
any
specific
mechanisms established
todetermine
annual rental increase
rates
staff and the
Board recommend that
theConsumer PriceIndex
CPI
isan
appropriate
measure
to
fairly
set a limiton theallowable
rental increase
rate The mechanism
used
by
other
Bay
Area
cities is
the
CPI
San Francisco
Hayward
Berkeley
East PaloAlto
andSan
Jose
The
advantage
thatthe
CPI
has
overothermethods
researched is that is
reported
frequently
and
is
compiled
for the
local area
Oakland
and San
Francisco
The CPIis
reported
bi monthly
witha
publication
lag
ofonemonth
The increase
allowedforthenext
12month
period
will be
30
II
NOTICE
Presently
theNotice
provision
outlinedintheOrdinance
requires
thelandlord
to
notify
the
tenants in
writing
oftheexistence
of
theRRAB This
noticemust be in
theform ofan
addendum to
any
lease rental
agreement
It
alsostates that a
landlord must
demonstrate
in advance to
a
hearing
that
he she
has
given
said
noticetoall
tenants under
disputes
However
theOrdinance
does
notstatewhat is
tobe includedin
thisnoticeorwhat
penalties
if
any
result
from thefailure
tois
comply
with this
provision
Staffhas
prepared
amodel
addendum
notice
but
many
landlords are
not awarethatnotice
exists Also
landlords
may
not be aware
of
what
type
of information
should be
provided
totenants toassure
compliance
EDICD8NOUSlN NOU
29t994
2
The
Boardhas
developed specificwording
that
will
be
required
in
the
noticetobe
provided
under
this section
This will
provide
all landlords
with
wording
tobe
given
in
this
required
notice
which will be referredtoas
anaddendum noticetoa
lease rental
agreement
Also
the
Board has recommended that
this notice be
prepared
by
the
City
and be
provided
to
landlords
and tenants
in
thesix
significant languages
of
Oakland The landlordwill be
ableto
make
copy s
ofthenoticeoruse
itto
provide
the
proper
form
toa
tenant sAlso
forms
will be available at the
Residential Rent
Arbitrationsection
Toreinforcethe
importance
ofthis
notice
the
Boardhas
proposed
to
establishanew
penalty
forlandlords
that
are
not in
compliance
with
providing
the
required
notice
This
new
rule
stipulates
that
ifa
landlord does
not
give
proper
notice
as
prescribed
in the
Rules
and
Procedures
theeffective
date of
any
rental
increase
otherwise
permitted
by
the
Ordinancewill be
forfeited
postponed
for sixmonths
The
landlordwill still be
required
to
provide
proof
thatthe
required
noticehas been
given
toall tenants
The Board
believes these
recommendations for
changes
will reinforce
the
importance
of
providing
the
required
notice of the RRAB s
existence
toall
tenants and
communicate
clearly
toall citizen s
the
purpose
ofthe
Residential
Rent Arbitration
Ordinance
IIIBANKING
The
existing
rules
stipulate
that if a
landlord chooses not to
increase
rents in accordance
tothe
amounts
allowed
by
the
Ordinance
the
remaining
allowable
percentage
increase
may
be
carriedoverto
succeeding
twelve
12
month
periods
Basically
this
provision
allows a landlord
to
go
backtothe
inception
of
this Ordinance
May
61980
or
tothe
original occupancy by
a
tenant and to
therent
amount thatwouldhave been
reached ifall
increases hadbeen
taken Allowable
rental increase
rates from
May
1980
through
1994
allowa 172 0
rent increase
TheBoardhas
determinedthat
whenalandlorddoes
nottake
his her
rental
increases as
provided
in the
provisions
on
banking
and
passes
through
asubstantial rental
increase
whichis
justified
it
can bea
hardship
foratenant The
existing
CaliforniaStateLaw
requires
a landlord
to
notify
the
tenant 30
days
before a rent
increase
A
tenant
can be notified
only
30
days prior
a rental
increase of
up
to
172 0
The revised
rules would
limit the
carry
over
rent
increase to
three
3
times thecurrent
allowable annual
rate
eg
30x
30
90
in
any
twelve
month
period
Inno
event
may
a
landlord
carry
abankedincreaseforward
for
morethanten
10years
This
will
substantially
reduce
themaximum
increaseallowed
in1994from
172 Ooto
18 0
3
x
600
and to
86 0
10years
allowable
over
several
years
EDICD HOUSINGNOV29
1994
3
IV CAPITAL
IMPROVEMENT
COSTS
Presently
this
provision
allows
a landlordto
justify
arental
increase
based
on
increased
capital
improvement
costs
These
costs
may
beamortized
overauseful
life
period
offive
years
or
a
60month
period
Once
a
rent has beenraised
theincreased
rate
iscontinuedindefinitely
The revised
provision
specifies
that after
capital
improvements
havebeen
amortized
overthe
period
of60
months
thedollar
amount
ofthe
rentincrease
justified
bycapital
improvement
costswill
be
reduced in
the 61st month
The
deletion of
capital
improvement
costs after
the cost
improvements
has
been
completely
amortized
represents
abalanced
approach
for
all
parties
involved
landlord
and
tenants
The
existing
provisions
allows a landlord
credit
for
capital
improvements
thathave
been
completed
and
paid
for
withinthe12
month
period
prior
tothe
dateofthe
proposed
rent increase
The
recommendation includes
a
provision
to
expand
the12month
period
toa24month
period
to
complete
and
pay
for
capital improvements
prior
tothe
dateofthe
proposed
rent increase
This recommenda
tionwas a
request
by
a
landlord
representing
alandlord
organiza
tion
V
DEBT
SERVICE
The
existing
debt service
procedures
provide
that an increase
in
rent
based
upon
debt service
mortgage payment
costs will
occur
only
in
those cases
where the total income
from the build
ing unit s
is
insufficient to
cover thecombined
housing
service
costs and debt
service costs
The
procedure
currently
requires
thatthelesser
ofactual
mortgage payments
oran
amount
determined
by
acalculation
based
upon
aconventional
financing
analysis
tobe
used todetermine
allowable debt service
cost The
conventional
analysis
is
determined
as follows
1
Ifa
property
contained
service
will be
purchased
20and amortized
over30
one
to
four
units
the
debt
withaminimum
down
payment
of
years
2
Ifa
property
contained
servicewill
be
purchased
25
and amortized
over25
five
or more
unit
the
debt
with
aminimumdown
payment
of
years
The interest
costs
can not exceedthefixed
rate
reportedby
the
Real
EstateCouncil in
theaforemention
assumptions
The
purpose
ofthis
conventional financial
analysis
was toassure
that
only
reasonable
and
customary financingcharges
were
passed
on
totenants
The Board has
determined that
these
assumptions
are
no
longer
required
in debt
service
analysis
When this
provision
was
4
originally
put
intheOrdinancetherewere
novariablerateloans
The
average
interest
rates atthe
inception
ofthis Ordinance
May
6 1980 ranged
from
approximately
10 0
to15 0
and lower
variablerateloans are
availableandoftenused to
acquire
rental
property
Fixedrateloans arenow
much
lower
averaging
from
7Oo
to
90
The
revision
will
require
that
landlords use actual
financing
cost at
acquisition
to
determine
the
rental rate
to
establish in a
breakevendetermination
Current
experience
isthat theactu
than
theconventional
analysis
ofte
financing
However
if
any
changes
financingmarket
a
recommendation
Boardtoreview
this sectionofthe
al debt
service
has
been
lower
ndue
tovariableinterest
rate
are
notedinthefuture
housing
will be made
by
staff
tothe
Ordinance
VITECHNICAL
CHANGES
Several technical
changes
have been
recommended to
be made inthe
Ordinanceand the
Rules andProcedures
to
clarify
the
meaning
and
ensure
consistency
These
technical
changes
include
a
finding
and
purpose
of the
Residential
Arbitration
Ordinance changes
in
definitions
outlinedinthe
Ordinanceto
clarify
the
meaning
andto
correspond
to
definitions
in
the
Rules and
Procedures
to
increase
the
filing
feeof
10 00to
15 00
fora
tenant or
landlord
filing
a
petition s
tothe
Residential Rent
Arbitration
Board
to
specify
seven
7
workingdays
verses
the
present
seven
7
calendar
days
specified
inthe
Ordinance
to
update
the
finefor
remedy
for
any
person s
convictedof an infraction
under the
provision
of
this
ordinance in
accordance toState
Laws
to
change
theannual
rate
reviewto
January
to
May
to
specify
the
proper
locationof
meeting
place
to
specify
the
Board
year
to
January
1
through
December
31
ofeach
year
and toreviseboth
documents
to
be
conglomerated
in
a
more
organized
format
EDIfA
HOUSING
NOV
29
1994
RESIDENTIALRENT
ARBITRATION STATISTICALSIIMMARY
JANIIARY 1993THROIIGH
DECEMBER1993
The
followingpetitions
were heard
and or
acted
uponby
theStaff
and
Hearing
Officers of
Residential Rent
Arbitration
2PETITIONSRESOLVED BY HEARING
OFFICERSAND STAFF
PETITIONS
A
Petitions
Received
through
December1993
460
B Petitions
Carried
overfrom
1992
22
TOTAL
1 482
C
Petitions Resolved
by
staffvia
Consultation
456
Mediation
D Petitions Resolved
by
Hearing
Officers
23
TOTAL
2 479
E Petitions
Pending
atthe
end ofDecember
1993
Total
1
minus
Total
2
3
IICONSIILTATION3 MEDIATION
RESOLVED BY STAFF
A Office
Consultations
scheduled
345
B OfficeConsultations
unscheduled
630
C
Phone
Consultations Mediation
4886
D Referrals
to
Other
Agencies
2355
E Materials
Requested by
Mail
3451
Ordinance
Rules
Procedures
Brochures
etc
1993
Page
2
IIIPETITIONSRESOLVED BYTHE
RESIDENTIALRENT
ARBITRATION BOARD ON APPEAL
A
Appeals
Filed
through
December 1993
3
B
Appeals
carriedoverfrom
1992
1
C
Total
appeals
heard
through
December
1993 3
D
Appeal
Petitions
Pending
attheend of
December 1993
1
V STATIISOF
PETITIONS
A
Number ofCases
Decided inFavorof
Tenant 10
Increases
above
annual
increase
amount
of 6butless than
landlord
requested
Rental
History Banking 5
Increased
Capital Improvements 2
Increased
Housing
Service
Costs 0
IncreasedDebt
Service
1
Annual
Rental
Increases
6 0
No
Rental
Increases
0
B Number of
Cases Decided
inFavor
ofLandlord 13
Rental
History
Banking g
Increased
Capital Improvements 0
Increased
Housing
Service
Costs
0
Increased
Debt Service
5
Total
Number
Of Cases Heard
Through
December 1993
23
D E CD
HOUSING NOV
2
9
QQ
1993
Page
3
C Cases
Closed
Priorto
Hearings
456
Reasons forcases closed
following
mediation counseling
with staff
Per
Petitioners
Request
35
Mutual
Agreement
reached
with
Tenant Landlord
362
Landlord
RescindedRent Increase
32
Rent Increase
was not
inViolation
according
toOrdinance
No9980 12
Other
15
VITOTALPETITIONSRESOLVED
SEE
SECTION
I
TOTAL
2
479
Others refers to
reasons
that
are
out ofthenormal routine
tenant
moved
tenantlivedinnon residential
area
tenant
died
etc
G
ED CD HO OSINGNnv 4on
RESIDENTIALRENTARBITRATION
STATISTICALSIIMMARY
JANIIARY 1994THROIIGH
AIIGIIST1994
The
followingpetitions
were heard
and or
acted
upon by
the
Staff
and
Hearing
Officers ofResidential
RentArbitration
IPETITIONS
RESOLVED BY HEARING
OFFICERS AND STAFF
PETITIONS
A
Petitions Received
through August
1994
115
B Petitions
Carried
over
from1993
3
TOTAL
1
118
C
Petitions Resolved
by
staffvia
Consultation
106
Mediation
D
Petitions
Resolved
by
Hearing
Officers
6
TOTAL
2
112
E Petitions
Pending
atthe
end of
August 1994 Total
1
minus Total
2
6
IICONSIILTATIONS MEDIATION
RESOLVED BY STAFF
A OfficeConsultations
scheduled
100
B
Office
Consultations
unscheduled
228
C
Phone
Consultations Mediation
2981
D Referrals
toOther
Agencies
2035
E
Materials
Requested by
Mail 2552
Ordinance
Rules
Procedures
Brochures
etc
FnIC 1RHousinG
NOV291994
1994
Page
2
III
PETITIONSRESOLVED
BY THERESIDENTIALRENT
ARBITRATION BOARDON
APPEAL
A
Appeals
Filed
through August
1994 2
B
Appeals
carriedoverfrom 1993
1
C Total
appeals
heard
through August
1994
2
D
Appeal
Petitions
Pending
atthe
end of
August
1994
1
V
STATII3 OF
PETITIONS
A Number
ofCases Decided in Favor
ofTenant 04
Increases
above annual increase
amount
of6
but
less
thanlandlord
requested
Rental
History Banking
2
Increased
Capital Improvements
1
Increased
Housing
ServiceCosts
0
Increased Debt
Service
1
Annual
Rental Increases
6
0
No
Rental Increases
0
B
Number ofCases Decided inFavor
of
Landlord
02
Rental
History Banking
0
Increased
Capital Improvements
1
Increased
Housing
Service
Costs 0
Increased
Debt Service
1
Total
Number
Of
Cases
Heard
Through August
1994
6
Fn Cn HOUSir 6
NOV2
91994
1994
Page
3
C Cases
ClosedPriorto
Hearings
Reasons for
cases
closed
following
mediation counseling
with staff
Per
Petitioners
Request
18
Mutual
Agreement
reachedwith
Tenant Landlord
26
Landlord
RescindedRentIncrease
34
Rent Increasewas
not inViolation
according
toOrdinanceNo9980
22
Other 6
VITOTALPETITIONSRESOLVED
SEE
SECTION
I
TOTAL
2
106
112
Others refers toreasons
that
are
outofthe
normal
routine
tenant
moved
tenantlivedinnon residential
area
tenant
died
etc
f
cn rn
wi 1t G
NOV
2
9
1994
tt
1
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100 3857979 9308 01 361 0304 09134Dne
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100 461
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124 2129 41390712 8122 0120 6190 2812811981
1D0 310 8391 340321 901 6976 2988 1Rlee
clnennns A1 50 000 andover DNot er
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Al iLl1715LNI IiXiyS
i1902 04 100unleaaolhr nrlacrrol rxl
NCIVL r1l lai2L1S2
MONTHLY DATA NOV
1991
UvCity AversBe 137 0
1907 100 412 7
IonAngeles Anaheim Riverside142 5
1967 100 423 8
San Fraociaco Oakland Sanoeo139 0
1987 100 97 98
i
ALLURDAN CONSUBRRS
FRRCRNTCIIANGR
Year 1 Month
INDRXRS
endlntt ending
OCT NOV OCT NOV NOV t
1992 1992 1992 1992 1992
191 8142 0323001
424 7925 3
148 9148 23833 01
438 4437 8
194 3144 2343101s
443 5443 3
IIRDAN WAGRRARNRRS ANDCLRRIGALNORB6NS
FRRCRNTCIIANGR
Year 1 Month
INDRXRS ending ending
NOV UCT NOV OCT NOV NUV
1991 199 L1992 1992 1992 1992
135 8139 6139 8312901
409 5415 8416 5
139 0143 843 5373201
110 8424 5424 2
I38 1142 3142 3333000
42U 4433 2433 3
Nent 139 0143 7143 9373501136 8141 3141 8363502
bec 1977 100 224 7232 2232 6 220 1227 4227 8
Neat A
140 9195 7145 7373400 137 2111 7141 8363401
Dec 1977 1U0 229 7237 5237 6 222 0229229 8
Wcat C
D 1977 10
138 714 0142 24140 09135 3139 3190 39c3 08
oc 0 212 1218 8220 6 208 7214 9216 6
izeclaesea A 1250 000and overD Not availableforWent C 50 000to
330 000
D Not availableforWest
leaee dateDecember 111992 For moreinformationcall 4157446600or213252 7521CFI24hour hotlinenumbers for
one pacificcities arean folloRn
Anchorage
907271 2770 Loa Angeles 213252 7528 San Diego 619557 6538 Seattle 206553 0645
Ilonolulu
808541 2008 Portland 503326 4132 SaoFranainco915744 6605
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JILY199 5F1FLL S9T14A1 F199 3
qLLURBAN CONGl1HER3
PERCENTCIIgNGE
Yrar 1Month
INDEYEB enJlnp endlnp
MONTHLY DATA JLN YJUNE JULY Jl1NE JULY JlN Y
1991 1993 1993 1993 1993 1993
UeCltyAverage 110 5144 4144 43028 OO
1967 1001 420 8432 4452 6
Los Angrlra Anaha mRlveralde146 7149 7149 82421 O1
1967 1001 433 3442 3442 6
Ban Franctaco Oakland BanJoae 142 2146 1146 13027OO
7 1967 100 437 2449 2449 1
v
Nrat 141 9146 0146 0
31
29OO
Dac 19771001 229 4235 9236 0
Neat A 143 9147 8117 72926U1
O
Drc 1977 100 234 6241 0240 9
Nrat C
7
139 1144 0144 9404206
Doc 197 100 215 7223 4224 8
INDEYEB PERCENTCHANGETO
19TIIAI F1993
IBT 2ND
18T
FROMr
SEMIANNUALOgTA HALF IALF IV1LF 1STRAIF 2ND HALF
1992 1992 1993 1992 1992
z
Q Anchorage 127 3129 1131 53319
Oct 19671001 319 9344 4331 0
Ilonolulu 153 9156 4150 631 14
1967 1001 121 6430 6416 5
Portland 138 8140 9143 63S 19
19671001 406 4412 5120 3
San
Dlega 147 0147 7150 423lB
19671001 497 1499 6500 7
eaattle 137 8140 2141 930 12
A
1967100 420 0427 3432 4
Bl aclaaaoar A 12SO 000and overB Ilot vallableorMeat
C 50 000
Release dateAupuet 13 1943 Far more lnformatloncall 41517446600ar
forthe pacific cities areas f olloHal
Anchorage 907271 2770 Loa Angeles 2132527520 San Diego
Honolulu BOB591 2800 Portland 5032312045Ben Francia
URBAN WAGE EARNERS AND CLERICALNORKER6
PERCENTCHANGE
Vrar 1Month
INDEYEB andlnq rnding
JULY JANE JIN YJINdE JIN YJl1LY
1992 1993 1993 1993 1993 1993
130 4142 0142 120T7O1
412 1423 1423 2
142 2144 8144 821l8 OO
420 1420 0470 1
140 4114 0144 12626 O1
427 6430 5430 7
139 7143 4143 42026 OO
224 0230 7230 0
140 1143 7143 6262SO1
226 9232 7232 5
137 6142 1142 03730 O5
212 3219 1220 3
INDEYEB PERCENTCHANGETD
i1STHAIF 1993
19T 2ND 1ST FROHi
IHALF IMLF
HALF
1 STIIAIF2ND HALF
1992 1492 1993 1992 1992
I
I127 0129 1151 43710
I330 6335 9342 0
I154 6157 2139 431 l
432 0439 3449 3
I133 5137 7140 31519
I390 5396 8404 5
I137 9138 6140 922l7
I444 5447 1IS4 4
I134 0137 2130 910 12
399 6406 0411 9
to130 000
D Nut vall lrlaturMrat
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619557 6310 Sraltlr 206SSS 0643
o
415741 6605
aPq
y
300
LAKESIDE
DRIVE
1STH
FLOOR
OAKLAND
CA
9612 353
Office
of
Community Development
TTY
839 6131
October
26
1993
HONORABLECITY
COUNCIL
Oakland
California
Mayor
Harris
andMembers of
the
City
Council
Subject
Residential
RentArbitration
Board
Annual
RentIncrease
Under the
provisions
of
Ordinance No9980
CMS
which
estab
lishedthe
Residential
Rent
Arbitration
Board
and its
regulations
theOrdinance
requires
thatthe
Legislative
and
Long
Term
Planning
Committee of
the
City
Council reviewthe
general
rate
of rental
increase
This review
is todetermine
whether
a
change
in the rate
is
necessary
The
currentrate
is60This rate
has been ineffect
sinceOctober
1
1986
TheResidential
Rent
ArbitrationBoardis
recommending
a
change
in
the
annual
rate
Itis the
beliefofstaff
and
theRent
Boardthat
an
adjustment
is
necessary
The
following
are
the allowable
percentages
from
the
inception
of
the
Residential
Rent
Arbitration
OrdinanceNo9980
CMS
10 0from
May 6
1980
through
October
311983
80from
November
11983
through
September
30
1986
and
60from
October
1
1986tothe
present
Whiletheannual
ratehas neverbeen
specifically
tiedtoa
measure
such
as the Consumer Price
Index
CPI
staff and the
board
believes
that
at this time the
CPI
is
an
appropriate
measure to
fairly
set alimit
on
the
allowable
rental
increase
rate
allowed
yearlyby
a
landlordjowner
The
advantage
that theCPIhas over
other methods researched is a
frequent reporting
period coupled
with
a
fairlymanageable
reporting
area
The
CPIis
reported
bi
monthly
with a
publication lag
of
one month
ED CDHOUSIrlGNOV29
1994
HONORABLECITY
COUNCIL
2
October
26
1993
The
Boardrecommends thatthe
annual
permissible
rent
increase for
thenext
three
years
bebased
on
the
San
Francisco Oakland SanJose
CPI
Each
year
the
average
of the CPIfor
the
previdus
twelve
month
period
ending
June 30th
ofthat
current
year
shall be the
permissible
annual
rent
increase effectiveOctober ist The
CPI
figure
will berounded
tothenearest whole
number
The CPI
reported
forthe
past
twelve
months
ending
inJune 1993was
26
Therefore
30is
an
appropriate
standardforannual
rate
adjustments
during
the
present
economical
climate
It
is
recommended
therefore
that
thecurrent
allowable
annual rate
of60be
decreased to30
effective
October
1
1993
Respectfullysubmitted
G
RICHARD
COWAN
Acting Chair
Residential
Rent
Arbitration
Board
EDICD
HOUISING
NOV
29
1994
OAKLAND
CITYCOUNCIL
RESOLUTION NO
nA
CCMS
INTRODUCEDBYCOUNCILMEMBER
RESOLUTION AMENDING
RESOLUTION NO 63429
CMS
WHICH APPROVED THE
RESIDENTIALRENT
ARBITRATION BOARD RULES AND
PROCEDURES
AND
APPROVINGAMENDMENTS
TO
CLARIFY
DEFINITIONS
TOAMENDTHEAPPEAL
HEARING
PROCESS
TO
CLARI
FY
CALCULATION
OF
CAPITAL
IMPROVEMENT
COSTS
TO
CLARIFY NOTICEPROCEDURES TO
TENANTS
AND
OTHERTECHNICALCHANGES
DRT
WHEREAS
the
CityCouncil by
the
Residential RentArbitration
Ordinance
No
9980
CMS
amended
by
Ordinance
No
10402
CMS
adopted
November
1
1983
and other
subsequent
amendments
hereafter the
Ordinance requires
that the Residential
Rent
Arbitration
Board Rules and Procedures hereafter
Rules and
Procedures be
approved by
the
City Council
and
WHEREAS
theRules andProcedures have notbeen
amended
since
1985
by
Resolution
No63429
CMS
and
WHEREAS
various
clarifications are
necessary
to
update
sections to
clarify
the
wording
and
provisions
and
WHEREAS
toassure
consistency
with
the
Ordinance now
therefore
be it
RESOLVED
That theResidential Rent ArbitrationBoard
Rules and Procedures
areamended toread as follows
RESIDENTIAL
RENT
ARBITRATION BOARD
RULES AND PROCEDURES
Rl1l1 JdIIA11
10 GENERALPURPOSE
11
The
purpose
oftheseRules and
Procedures is to
serve
as
a
cataloged
list
of
rules
which
provide
a detailed
interpretation
ofthis Ordinance
The Rules and
Proce
dures
were
originallyadoptedby
theRRAB
and
approvedby
the
City
Council
on
August
4
1981
They
wererevisedon
August
11985
unless otherwise noted
ED tDnUUSiNG
NuU
9
1994
DRAFT
20 DEFINITIONS
21
Base Rent
The
monthly
rental ratebefore
thelatest
proposed
increase
22
Current
Rent To
keep
current
means
thatthe
tenant is
paidup
to
dateonrental
payments
atthe
base rental rate
23
Landlord
For
the
purpose
of
these
rules
theterm
landlord
will be
synonymous
with
owner
orlessor
ofreal
property
that
isleased
or rentedto
another and ro
24
Manager
25Petitioner
26
Respondent
a
28
A
petitioner
is the
party
landlord
or
tenant
whofirstfiles
an actionunder
theordinance
A
respondent
is the
party landlord
or
tenant
who
responds
tothe
petitioner
2
EDIDD
IUj
2
1994
A
manager
is
a
paid either
salary
ora
reduced
rental
rate
representative
of
thelandlord
Da
30
LANDLORD TENANT
COOPERATION
31
Beyond
its
role
in
formulatingpolicies
and
procedures
the Board believes
it has a civic
responsibility
to
fosteraclimate
ofbetter
understanding
between land
lords and
tenantsandnotto
polarize
thesetwo
important
segments
Landlords
and tenants
are
encouraged
to
communicate
openly
with
each otherontheconditions
and
terms
ofrent increases
allowedunderthese
guidelines
32
Landlords are n
permission
befor
s
that will
laridlords
should
establish
the
pr
of
required
toobtain the tenant s
e
making
i
Q
result in
a rent increase
However
beawarethat
theseRulesandProcedures
inciple
that
only
those
r
j
which benefit
the
tenant smay
be
33 With
the
exception
of
security
deposit disputes
in
Section
91
onceadecision
is rendered
by
the
Hearing
Officer
and or
the
Board
itisthe
responsibility
ofthe
landlordand the
tenant s
todetermine
theterms under
which
thedecision is carried
out For
example
in a
situation
where adecisionisretroactive
andresults in
money
being
owed tothe
landlord
by
the
tenant
orvice
versa
it is
up
tothe tenant
and the landlord to
determinethe
method of
payment
40
JURISDICTION
OF
THEBOARD
41 The functionand
responsibility
oftheBoard istohear
appeals
fromthedecisions
ofthe
HearingOfficer s
An
appeal
may
befiled
by
either
party
totheaction
ie
tenant or
landlord
ora
Hearing
Officer
Tie
or
a
eneee fie
ali
ccr iii ie
tiu cr re rea sz rei s
e3rioi RU B
irte
edee is ers
eteardt
42 The Boardhas the
flexibility
to
interpret
the
provisions
oftheOrdinance
totheextent
necessary
to
expeditiously
perform
its arbitrationduties
43
The
Board
may add delete
or
modify
theRRAB s
Rules and
Procedures in
order tomake them consistent with
prior
decisions
or
to
describenew
policyinterpretations
The
3
ED CD
HORSING
s
NOV29iQ9d
RRARules
and Procedures
may
be
amended
by
a
maj
r
y
voteofthe
Boardand
upon
approval
ofthe
City
Council
50 GENERAL BOARDPROCEDURES
51
The Board shall
holda
regularmeeting
onthesecondand
fourth
Thursday
of each month at 700
pm
Unless
otherwise
designated
the
meetings
aretobe
heldat
Ei
33tP
Oakland
CA94612 The
City
Courici Y
City
Mariager
and the
City
Clerk shall be
informed
of the
regular
schedule of
meetings
and an
agenda
of
each
regular
meeting
shall
be
posted
atleast
72hours before
a
regularmeeting
in
a
location
thatis
freely
accessible
tothemembers ofthe
public
52
A
meeting
may
be
adjourned
toa time
and
place
to
complete
the
agenda
if voted
by
the Board members
present
When a
quorum
cannot be
convened fora
regular
meeting
orwhen a
quorum
votes tosubstitute
another
time
and or
place
forascheduled
meeting
a
rescheduled
meeting may
be held
Absent Board
members
Council
members HearingOfficers CityManager
and
City
Clerk
are tobe notified of
change
of
meeting
time
and or
place
53
Meetings
called
by
the
Mayor
or
CityManager
or
meetings
scheduled for
a time and
place
other
than
regular
business
aretobe
designatedSpecial Meetings
Written
notice
andthe
agenda
ofsuch
meetings
shall be
given
to
the
Board
members
Councilmembers
Hearing
Officers City
Manager
City Clerk
and to
each
local
newspaper
of
general
circulation
radioortelevisionstation
thathas
requested
notice in
writing
at least
twenty four
hours
beforethe
meeting
is
scheduledtoconvene The
agenda
of such
meeting
shall be restricted
tothose matters
stated
in
theCall
54 All
meetings
shall be
open
to
the
public
in accordance
with the Brown Act e
ce twh nex the
aiscussion s
nga dpersonnel
matters
orfor i
il
iii viiiiii
ii
9i
iviiiian
other lealreason thCrW 3s55The order
of business
atall regular meetings
shall be
asfollows
1Call to
order
2
Roll call 4
EDICD HOUSING
NOV
2
9
1994
3
Approval
ofminutes
4
Special
call
5OldBusiness
6 NewBusiness
7
Consideration
of
appeals
8
Appeal
hearings
9 Staff
Reports
10 Communications
11
Adjournment
DRR
56
The
meetings
shall be conducted in accordance with
Robert sRules of
Order
Revised
57
The Board
year
shall commence
annually
on
1ra ee
air 1c1 n
ofthe
followingyear
At tY efirst
regurar
meetrig
of
the
Board
year
theBoard shall electa
Chairperson
from
one of the five neutral Board members If
the
Chairperson
is
absent
theBoardshall electa
Chairper
son ProTem fromone ofthe
remaining
four
neutral Board
members The
presence
offour
Boardmembers constitutes
a
quorum
and
any
decision
by
theBoard shall
require
a
majority
ofthosemembers
present
58
The
position
of
Secretary
totheRent Arbitration
Board
was
established
by
OrdinanceNo9980
CMS
as amended
The duties ofthe
Secretary
totheBoard areto
process
all
petitions
for reviewsubmitted
by
tenants
and or
landlords
schedule
hearings
and
perform
general
administrativeduties
60
RULES FOR
PROCESSING
PETITIONSAND RESPONSES
61
Filing
Fees Each
petition
shall be
accompanied
by
the
requiredfiling
feeora
signed
feewaiver
formofindi
gence
as
specified
in
theMaster Fee
Schedule
62 Tenant Petition
and
Response
Requirements
Before
accepting
a
petition
from a tenant or
accepting
a
response
froma
tenant
the
following
determinations
must
bemade
a
The fee has been
paid
orthefee waiver form
has been
signedby
thetenant
5
G
ED1CD
HOUS t
NO12
9
1994
DRAFT
b
The
proposed
rent increase
is in excess
of
thatwhich is
allowed under Section 5
ofthe
Ordinance
c
The tenant s
rent
is
current at
the time a
petition
or
response
is filed
and
throughout
the
appeal
process
However
ifatenant is
lawfully
withholding
rent due
toHealth and
Safety
Code
violations ora
breach ofhabit
ability his her
rent will be considered
as
current for
administrative
purposes
of the
RRAB
63
The
dwelling
unit
underconsideration
meets thedefini
tionof
arental unitas defined in
Section
2i
ofthe
Ordinance
64
aQena Tene aaT ere ile6
vorzzcerr 6ce re ei ie6scc t
aQe rEt 3e
ee
aiz
ce arr cT iT6 3ie3 6z
ic ei T3 eirc 6i
circ
eStcicei i
i6fi
6r
aa a
aa yy
i
PL RCI SIrGT1LT r
eG
e1
j
6
EDICD
HOUSit
NOV
2
91994
DRAT
641
65
Landlord sRent Increase
Application
and
Response
Requirements
Before
accepting
an
application
fora
rent
increase
froma
landlord
ora
response
froma
landlord
the
following
determinations must
bemade
a
The feehas
been
paid
or thefee
waiver
form
has been
signed
by
thelandlord
b
The
landlordhas
paidhis her
Oakland
Business
Licensetax
c
The landlordhas notified
all tenants inthe
building
underconsideration
oftheexistence
of
the
RRAB
as
requiredby
Section
5d
ofthe
Ordinance
66 The
filing
date
of a
petition
from a
tenant for rent
increaseis
consideredtobethe
datethatthe
petitioner
has submitted
the
following
a
The
appropriate
formhas been
completed
and
signed
tenant petition
b
All fees have been
paid
or
waived
c
The documentation has been
provided
1 Current rent
receipt
or
statement
2 Residential Rental
Agreement Lease
3 All documentation
pertaining
tothe is
sues have been
provided
661
Rent increases that
are
either
approved
or denied as a
result of a tenant s
petition
will
apply only
tothe
units listed
inthe
petition s
7
EDICD HOUSING NOV
29
1994
67The
filing
date of
a landlord s
application
for
rent
increase
isconsidered
tobethe
datethatthe
petitioner
has
submittedthe
following
a
The
appropriate
formhas
been
completed
and
signed landlord
petitioner
b
All fees have
been
paid
or
waived
c
All documentation
has been
provided
d
Addendumnotices have been
given
toall
ten
ants
and
e Appropriate
business
licensefees
have been
paid
671
Rent
increases
that are either
approved
ordenied
as a
result ofthe landlord s
application
will
apply
toall
tenants in
the
building
68 Landlords and
tenants
may designate
others to
represent
them If
they
dosoand iftheaddresses
are
provided
thenthe
representatives
will be sent
thesame documents
as are sent tothe
people
they represent
69 Tenants
will be notified
of the
prehearing
conference
with
thelandlordandwill
be
given
thechoiceto
attend
or
not
610 Continuance
may
be
granted
toeither
party
for
up
toan
additional
30
days
which
would
bring
the
total
time
to
60
days
from
filing
date to
hearing
date
Ifthe
petitioner
isthe
party
requesting
the
continuance
the
case
will
be closed if
the
petitionrequires
more
than
the
additional 30
days
Ifthe
respondent
isthe
party
requesting
the
continuance
the
case
will
beheard
by
the
hearing
officer
attheendof
60
days regardless
ifthe
respondent
is
prepared
611 Petitioneror
respondent
fees
may
be
waived
by
staff
if
the
party requests
a feewaiver because
of
indigence
612 The
anniversary
date
upon
whichannual rate increases or
rental
history
will
be
calculatedinthe
following
order
of
preference
1
The datethetenant
moved intothe
building
2
For
tenants with norent increase
since
May
1980
use
May
1980
8
ED CD
HOU SIHG
NOV291994
3
In
buildings
where all
rent increases
aremade
in
thesame
month
andthe
tenant s
in
ques
tion
is are
receiving
anincrease
inless
than
twelvemonths
from
his her
move in
month
then
the
anniversary
date
may
be either
a
The move in
month
or
b
The
same month as
theother
tenants
andtheannual
increaseis
prorated
613 The casefiles
are
public
and
may
be
insp ectedbx
anyone
durin
normal business hours
tro1n i1dhti
4
70 ROLES GUIDELINES
AND
JURISDICTION
OFTHEHEARINGOFFICER
71 A
Hearing
Officer
shall conduct
hearings
atwhich
parties
can
present
information
and at which
testimony
and
information is
secured
in
order to
prepare
torender
decisions
about
allowable
rent
etc
72
73
9
DCllR
Nn in r
inv
onn
A
Hearing
Officer must
foster an
atmosphere
in
the
hearing
to
resolve
the
issue s
and to
improve
the
relationships
between the
parties
Priorto
closing
the
hearing
the
Hearing
Officer
should
give
both
parties
tenant
and
landlord equal
time
fora
closing
statement
DRW
74
s
75The
Hearing
Officer
may interpret
the
provisions
of
the
Ordinance
tothe extent
necessary
to
expeditiously
perform
his her
arbitration duties However
if
said
interpretation
involves
new
policy
questions
the
Hearing
Officer
must
appeal
that
resulting
decisionto
theBoard
76
If
health and
safety
Oakland
Housing
Code
violations
that are defined
as
Priority
One or
Priority
Two
items
by
the
City
ofOakland s
Housing
ComplianceOffice
existina
building
the
Hearing
Officer
has thediscre
tion tomake
any
rent increase
contingent upon
the
correction of
such violations The
Hearing
Officer s
decisionmust be
supported
by
a
CityHousingInspector s
NoticetoAbate
The rent increase
shall become effec
tive
uponreceipt
oftheVerification
ofAbatement
Once
theRRAB office
has received
theVerificationof
Abate
ment
a
final
written decision
must be sent to
the
Landlord
Agent
and
Tenant s
80
CONDUCT
OF
HEARINGS
BY THEHEARING
OFFICER
81 All
hearings
will beconducted
by
the
Hearing
Officerin
public
session
82
red
re37
ees erde s3d e
de eea 3eaenab
eabz er
gds
uiicu vv
ui
l
10
nirn Hous
NOV
291994
CzS
akaia
ent awho dno taoner ax
droxi rner
w1be
rqxred tcs eha
ie
w
a
zl
a483Written notification
of the
Hearing Officer
sdecision
and
acopyof
theinformation
on
appeal procedures
willbe
sent
to
both
parties
withinseven 7
w
rk
days
of the conclusion
of
the hearing
84The
Hearing
Officer should not
have
communications with
one side
when
the
other party
isnot present
This
prohibition against
ex
parte
communications
applies
at
all
times
before
the
hearing If
onlyone
side
is
present
at
the
hearing
the
Hearing
Officer
will
continue
to
hearthecase
and render a
decision After the
hearing decision
has been
rendered
the
Hearing Officer
may
communicate
with
the
parties
8
5Witnesses
should
be identified
for
therecord and
qualified on the
facts
they
will
present The
Hearing
Officer
can
question
each
witness and
opposing
parties can
cross
examine8
6
Petitioners
respondents
and witnesses
shouldgenerally
be
permitted
to
make
their
statements
without interruption
TheHearing
Officer
should
limit
rambling
irrelevant
orrepetitive
statements
8
7
Hearing
Procedures
Each hearing
will
be
conducted
in
the
following order1
The
hearing
officer
will read
an
oral state
ment describing the
hearing
purpose
and
proce
dures2
Petitioner
s
respondent
s
and witnesses
sworn to
tell
the
truth a
Translators sworn to
be
fairandaccurate 3Summary
ofst
a
f
crit read 4
Petitioner may
respond
to
st
ai
L
t11ED
CD
HOUSING
OV
291994
DAF
5
Respondent
may respond
tost a
ia
6 Petitioner
may
make
opening
statement
7
Respondent
may
make
opening
statement
8 Petitioner
presents
his her
case
9
Respondent
may
cross examine
10
Respondent
presents
his her
case
11 Petitioner
may
cross examine
12 Petitioner
may
make a
closing
statement
13
Respondent
may
make a
closing
statement
14
Closing
statement
by
the
Hearing
Officer
88 Ifthe
Hearing
Officer
determines that a
rent
increase
which is
more than was
requested
is
justified
the
landlord
may
not
increase
the
rent
beyond
the
requested
amount without
a new
30 day
notice This additional
amount cannot be retroactive
90 RENT
SECURITY DEPOSITS
AND INCOME
91
Security Deposits
In
security deposit
disputes
the
Hearing
Officer
shall use Section1950 5
oftheCalifor
nia
Civil Code as
a
guide
in
determining
the
proper
security
deposit
92
The
Hearing
Officershall
furtheruse
his her
discretion
in
creating
areasonable
payment
plan
formonies
owed
if
Section 1950 5
has been violated
93 All
sources ofincome derived
fromthe
subjectproperty
shall be considered
Income sources include
thetotal
scheduled
rents
of all
units
including
manager s
apartments
other
tenant
charges ie
parkingfees
and
any
otherincome
derived from the
operation
ofthe
buildingie
laundry cigarettemachines
etc
In
theevent that
therewerevacant
units withinthetime
period
under
consideration
the
rental fee for the
previous
tenant shall beused in
calculations
94
Currentrent
To
keep
rent current
means thatthetenant
is
paid
up
to
dateonrental
payments
atthebase rental
rate The base
rental is the
monthly
rent beforethe
latest
proposed
increase
12
EDICD
HOUSI
NOV291994
AFT
95
Ifthe
manager
lives in
one of
the
units
the
gross
income includes
the
manager sunpaid portion
of
therent
plus
theamount the
manager pays
forrent The
unpaid
portion
of therent
is
listedas the
manager s
salary
when
listing
operatingexpenses
96
Ifthereis
nowritten
agreement
between
the
landlord
and
the
manager
which establishes
the
manager s
rent
and
salary
thencalculate
the
rent forthe
manager s
unit
1
Addthebase rents for
all
units
excluding
the
manager s
and divide
by
thetotal
square
foot
age
of
all the
units
excluding
the
manager s
unit
2
Multiply
the
square footage
ofthe
manager s
unittimes
the
average
cost
per square
foot
of
theotherunits
3If
the
square
footage figures
are
not
avail
able
then
average
the
rents of
comparable
units in
this
building
97
10 0
10 1
10 11
In
determining
whether therehas
been an increase in
housing
service
costs
consider the annual
operating
expenses
for the
previous
two
years For
example
if
the
rent increase is
proposed
in1993
thedifference
in
housing
service costs
between 1991and 1992 will
be
considered
The
average
housing
servicecost
percentage
increase
per
month
per
unit
shall be derived
by
dividing
this
difference
by
twelve
12months
then
by
thenumber
ofunits in the
building
and
finallyby
the
averagegross
operating
income
per
month
per
unit
which
is determined
by dividing
the
gross monthly
operating
income
by
the number of
units
Once the
percentage
increase is
determinedthe
percentage
amount must exceed
13
EDfCD
HOUSING NOV
29
1994
JUSTIFICATION
FORADDITIONAL
RENT
INCREASES
DRA v
the allowable
rental increase
deemed
by
City
Council
The
total determined
percentage
amount
is
the actual
percentage
amount allowedfor
a
rental
increase
10 12
Any
major
or
unusual
housing
service
costs
ie
a
major
repair
which
does not
occur
everyyear
shall be
consid
ered a
capital improvement
10 13
Any
item
which has a
useful life
ofone
year
or
less
or
which is
notconsidered
tobea
capital
improvement
will
be considered
a
housing
service
cost
ie
maintenance
and
repair
10 14Individual housing
service
costitems will
notbeconsid
ered for
special
consideration
For
example
PG E
increased
costs will not be
considered
separately
from
other
housing
servicecosts
10 15
Documentation
iebills
receipts and or
canceled
checks
must be
presented
for
all costs which
are
being
used
for
justification
of
the
proposed
rent increase
10 16
Landlords are allowed
up
to
8of the
gross
operating
income
of
unspecified
expenses
iemaintenance
repairs legal
and
management fees etc
under
housing
service
costs unless verified
documentation in
theform
of
receipts
and or
canceled checks
justify
a
greater
percentage
10 17Ifa landlord
chooses to
use 8of
his her
income
for
unspecified expenses
it
must be
applied
toboth
years
being
considered under
housing
service
costs
for
example
8cannot be
applied
to1980 and not
1981
10 18A
decrease in
housing
service
costs
ieany
items
originally
included
as
housing
service
costs such as
water
garbage etc
is
consideredtobe
an increasein
rent and will be
calculatedas such
ie
the
average
costofthe
service eliminatedwill
be
considered as a
percentage
of the
rent
Ifa landlord
adds service
ie
cable
TV
etc
without
increasing
rent orcovers
costs
previously paid
by
a
tenant
this is
consideredto
be arent decrease
and
will
be
calculatedas such
10 19
The transfer
of
utility
costs
tothe tenant
by
the
landlord
is
not considered as
part
oftherent increase
unless thelandlord
is
designated
in
the
original
rental
agreement
tobe
the
party
responsible
for
such costs
10 110
When
morethanone
rental unitshares
any
type
of
utility
bill with
another
rental
unit
itis
illegal
to
divide
up
thebill
betweenunits
Splitting
thecost ofutilities
14
DRAF
among
tenants
wholivein
separate
units
is
prohibited
by
thePublic
Utilities
CommissionCode
andRule
18ofP
G
E The best
way
to
remedy
the bill is toinstall
individual
meters
If
this
is too
expensive
thenthe
property
owner
should
pay
the
utility
bill
himself
herself and build
thecost into
therent
10 2
10 21
10 22
Eligible capital improvements
include
but
are not
limited
to
the
following
items
1 Those
improvements
which
primarily
benefit
the
tenant
rather than the
landlord
For
exam
ple
the
remodeling
ofa
lobby
wouldbe
eligi
ble as a
capital
improvement
while
thecon
struction
of a
sign advertising
the
rental
complex
would not be
eligible
However
the
complete painting
ofthe
exteriorofabuild
ing
the
complete painting
of the common
interior
areas
the
complete
interior
painting
ofinternal
dwelling
units
are
eligiblecapi
tal
improvement
costs
2
Inorder
for
equipment
to
be
eligible
as
a
capital improvement
cost
such
equipment
must
be
permanently
fixed
in
place
or
relatively
immobile
For
example draperies
blinds
carpet sinks
bathtubs
stoves refrigera
tors
and
kitchen
cabinets are
eligiblecapi
tal
improvements
Hot
plates
toasters
throw
rugs
and hibachis
would not be
eligible
as
capital
improvements
3
Repairs
completed
in
order
to
comply
with the
Oakland
Housing
Code
may
be
considered
capital
improvements
Ifthe
repairs
are
considered
as
Priorit
1or
2CEresut x
nhe hrep may not
be
consid
erect
as
capltal
mprovemen
15
EDICD
HOUSING
GNOV
29
1994Credit
for
capital
improvements
will
only
be
given
for
those
improvements
which
have
been
completed and
paid
for
within
the
3month
period
priortothe
date ofthe
proposed rent
increase
F
4 Use of a
landlord s
personal appliances
furniture
etc
orthose items
inheritedor
borrowedarenot
eligible
for consideration
as
capital improvements
5Normal routinemaintenance
and
repair
ofthe
rental unitand the
building
is
not a
capital
improvement
cost
but a
housing
service
cost
For example
while
the
replacement
of old
screens with new
screens would
be a
capital
improvement
10 23
Capital Improvement
costs arecalculated
according
tothe
following
rules
1
For
mixed use
structures only
the
percent
of
residential
square footage
will be
applied
in
thecalculations
Thesame
principle
shall
apply
to
landlord occupied
dwellings ie
exclusion
of
landlord s
unit
2
3 A
monthly
rent increase
of
160th
ofthe
average
per
unit
capital improvement
cost
is
allowable
that
is
the
landlord
may
dividethe
total cost
ofthe
capital improvement
by
60
andthendivide
this
monthly
increase
equally
among
the
units
which
benefitedfrom the
improvement
ie
a
roof
benefits all
units
4 Ifa unit is
occupied by
an
agent
of the
landlord
this unit
must be included
when
determining
the
average
cost
per
unit
For
example
ifa
building
has ten
10
units
and
one is
occupied
by
a
nonpaying
manager any
capital improvement
wouldhave
tobedivided
by
ten
10
not nine
9
in
determining
the
average
rent
increase
This
policy
applies
to
all calculations
in
thefinancial
statementwhich
involve
average per
unit
figures
5
Undocumented
laborcosts
providedby
thelandlord
cannot
exceed 25ofthecost ofmaterials
16
l3
EDICD
HOUSING NOV
29
X94
Items
defined as
capital improvements
will
be
given
auseful life
period
offive
5
years
or
sixty
60months
and shall be amortized
over
6
Equipment
otherwise
eligible
as a
capital
improvement
will
notbeconsidered
ifause
fee
is
charged ie
coin operated
washers
and
dryers
7
If
the
capital improvements
are financed
with
aloantomake
capital
improvements
whichterm
exceeds five
5
years
sixty
60
months
the
following
formula
fortheallowableincrease
is
monthly
loan
payment
divided
by
numberofunits
8 Where a
landlord is reimbursed
for
capital
improvements ie
insurance
court awarded
damages subsidies
etc
this
reimbursement
must bedeductedfrom
such
capital improvements
before
costs areamortized
andallocated
among
theunits
10 24
10 3
10 31
Uninsured
repair
costsare
thosecosts incurred
asaresult
of
natural causesand
casualty
claims
itdoes notinclude
improvement
workorcodecorrection
work
Improvement
work
orcodecorrection
workwill be
consideredeither
capital
improvements
or
housingservices
depending
onthenature
ofthe
improvement
10 32
Increases
justified
by
uninsured
repair
costs will
be
calculatedas
capital improvement
costs
10 4
Debt Service Costs
Debt Service
Costs are the
monthly
principal
and
interest
payments
on
the
deed s
oftrust
secured
by
the
property
10 41
An increasein
rentbasedon
debt servicecostswill
only
be considered
in those cases
where thetotal income is
insufficient
to
coverthecombined
housing
serviceanddebt
service
costs after
a rental increase as
specified
in
Section5
oftheOrdinance The
maximumincrease
allowed
17
EDICD
HO1 51 G
s
NOV29
1994
Insome
cases
it
is
difficult
to
separate
costs
between
rental
units
common vs
rental
areas
commercial vs
residential
areas
or
housing
servicecosts
vs
capital
improvements
In these
cases
the
Hearing
Officerwill
make adetermination
on a
case by case
basis
DRW
underthis
formulashall be
thatincrease
that
results
in
arental
income
equal
to
thetotal
housing
service
costs
plus
the
allowable
debt service costs
10 42
Nomorethan95of
the
eligible
debt servicecan
be
passed
onto
tenants The
eligible
debt
serviceis
theactual
principal
and interest
tiareh serr ems
etio
w
d
i
p
ieat i e as
de see o
e
e d
p
0
z
6eft6 tti ft E3ee3
ia
a
ti ti a
a
tg enahpr p
0
a3e
Ted ee
Tdea
a
6 ai
T
t
a
a
c
ca ir0 61
o
meaze e
0
tetire ee
zcsrcirazz or1 6vires ei tlirr crr ede
icre rs eeeeaeefp
ti F
cz1
a
crr e
Ar6
nr n
F i L
uvl
y lell 1
L
r
i
10 43
10 44
18
ED CD
HO
Ifthe
property
has
beenowned
by
the
currentlandlordand
theimmediate
previous
landlordfor
acombined
period
of
lessthan
twelve
12months
no
considerationwill be
given
for debt service
DRAFT
10 45
Iftherentshave
been
raised
prior
toanew
landlord
taking
title
or if
rents have
been raised in excess
of the
percentage
allowed
by
the
Ordinancein
previous
12 month
periods
without
tenants
having
been notified
pursuant
to
Section
5d
ofthe
Ordinance
the
debt servicewill
be
calculated
as follows
1Base rents will
be considered
as therents in
effect
prior
tothefirst
rent
increase
in
the
immediate
previous
12 month
period
2 The
new
landlord s
housing
service
costsanddebt
servicewill
beconsidered
The
negative
cash
flowwill be
calculated
bydeducting
the
sum
of
the
housing
servicecosts
plus
95ofthedebt
service
from the
adjusted
operating
income
amount
3 The
percentage
ofrent increase
justified
will
thenbe
applied
tothebaserents
ie
therent
prior
tothefirst
rentincreasein
the12 month
period
as
allowed
by
Section
5oftheOrdi
nance
10 46
Refinancing
and
second
mortgages
aSpsisTe rcrPrrc rrrcrc S
euira etic Qe
seoze
GrceEf Ai uT Qa crti tci
1 l
1
a
at
10 47As
in
housing
service
costs
anew
landlordisallowed
up
to8ofthe
gross operating
incomefor
unspecifiedexpen
ses
10 5
Rental
History Bankincx
10 51
Ifa
landlordchooses notto
increaserents
pndby ednarice
since
May
6T980
e
remaining
al owabYe
percentage
increase
may
beca rrie dover to
succeeding
twelve
12
month
periods zweyernysuch
scar
19
G
EDIGD
HOU5I VU
NUv 2
9
1994
directly
benefits the
tenant
iecapital improvements
or
housing
services such
as
maintenance
and
repairs
or
if
the
refinancing
was a
requirement
of
the
original
purchase
DRAFT
eay fie
trseeee
rear
eter
11 0 APPEAL
PROCEDURES
11
1
TheBoardwill consider
each
appeal
etie 9aee
aYea gib
hldam
a
rib ae
11 2
In
the
event ofa tievote
by
the
Board
the
Hearing
Officer s
decision shall be
upheld
12 0RETALIATORY
EVICTIONS
12 1Ifatenant
statesthat
he she
wasevictedinretaliation
for
any
actions the
tenant took
regarding
the
Ordinance
then thetenant will
be referredtoSection 10
ofthe
Ordinance While
no
legal
advice will be
given
tothe
tenanthe she
may
be
given
information
about
legal
service
agencies
I
certify
thatthe
foregoing
is
afull
true
and
correctcopy
of a
Resolution
passedby
the
City
Council of the
City
of
Oakland
California
600 246 001
493
on
Per
CEDA
FLOYD
City
ClerkandClerk
of theCouncil
Deputy
ED1CD
HOUSING
NOV29
1994