A. At the time of the recomputation of the base rent, the landlord may further add to the apartment unit rent a surcharge for capital expenditures for which the landlord incurred expense after the date of the last preceding rent increase in accordance with the following criteria:
1. If the capital expenditures benefited the entire building, they shall be prorated among all the tenants' rents on a square footage basis of the apartment units but annualized in accordance with the straight line depreciation schedules allowed under the Federal Income Tax laws.
2. If the capital expenditures inure solely to the benefit of one or more of the apartment units but to less than all, the surcharge shall be so annualized but shall be applied and/or prorated only with respect to the one or more units actually so benefited.
3. No capital expenditure surcharge shall be allowed which exceeds four percent (4%) of the amount of the base rent level which validly existed prior to the latest allowable recomputation of the rent. For the purposes of such computation, the base rent level for any time period shall not include any capital expenditure surcharge but may include amounts expended for major remodeling permitted pursuant to this chapter.
4. Except where capital expenditures are required by law, any capital expenditure to the interior of any apartment unit shall only be performed with the written consent of the tenant, or the landlord shall not be entitled to add a surcharge for such expenditure. The tenant shall not unreasonably withhold such consent.
5. Upon a request by a tenant, the landlord shall provide such tenant with copies of documents utilized by the landlord in determining the amount of the capital expenditure surcharge to be paid by such tenant, and such surcharge shall be abated until such time as the landlord deposits in the mail such documentation addressed to the tenant with adequate postage.
B. No landlord shall be entitled to any rental increase based upon any capital expenditure, the computation or representation of which has been arrived at collusively between the landlord and a contractor or other person.
C. For the purposes of this section, "capital expenditure" shall mean a permanent improvement or renovation, being an allowable capital expenditure for internal revenue service purposes, and other than ordinary repairs or maintenance, the use of which will continue for at least five (5) years after the date of the completion of such capital expenditure. Painting or texturing the exterior of a building shall also be a capital expenditure for the purposes of this section. (1962 Code § 11-3.04)