A. Applicability. As of October 30, 2020, no landlord may request, receive, or retain rent for a covered rental unit from an existing tenant whose tenancy began on or before October 30, 2020, in an amount that exceeds the monthly rent that was in effect on October 30, 2020, plus any rent increase authorized by this § 15.09.215. No landlord may request, receive, or retain rent for a covered rental unit from a tenant whose tenancy began after October 30, 2020, which amount exceeds the initial monthly rent charged for the covered rental unit, plus any increase authorized by this § 15.09.215. Rent increases that were instituted in compliance with the Interim Rent Control Ordinance and that took effect before October 30, 2020 shall not be invalidated by this § 15.09.215.
B. Annual permissible rent increases. On or after October 30, 2020, rent for a covered rental unit may be increased annually, without application to the city, in an amount not to exceed the percentage change in CPI, subject to the following provisions:
1. In no event shall the rent for a covered rental unit be increased more than 5% every 12 months.
2. If the percentage change in CPI is less than 2%, rent for a covered rental unit may be increased by up to 2%.
3. Not more than one rent increase for a covered rental unit may be imposed in any 12-month period, except as described in § 15.09.215.B.4.
4. A landlord may impose a rent increase under this § 15.09.215 that takes effect sooner than 12 months following the date of the latest permitted rent increase under the Interim Rent Control Ordinance but such transitional increase, in combination with the prior increase, may not result in total rent increase that exceeds the maximum amount permitted under this § 15.09.215.B. Subsequent rent increases may only take effect every 12 months thereafter.
C. Overpayments. In the event that a tenant household has paid rent in excess of the maximum permissible increase authorized by this § 15.09.215, the landlord shall credit the tenant for the balance of the overpayment. The landlord may elect to either: (a) pay the tenant the balance of the overpayment directly in one lump sum; or (b) give the tenant a credit against the rent otherwise due from the tenant to the landlord over a period of not more than six months.
D. Rent increases following vacancies.
1. A landlord may set an initial rent for a covered rental unit without restriction at the commencement of a new tenancy where no member of tenant's household is an occupant of the covered rental unit only in the following circumstances:
(a) The covered rental unit was voluntarily vacated by the tenant's household. For purposes of this § 15.09.215.D, a tenant will not be considered to have voluntarily vacated if:
(1) The landlord served a notice of termination; or
(2) The tenant has opted to voluntarily vacate pursuant to § 15.09.330.F of this code.
(b) The covered rental unit was vacated as a result of landlord's termination of tenancy pursuant to § 15.09.315 of this code.
(c) The covered rental unit was vacated as a result of landlord's termination of tenancy pursuant to § 15.09.320 of this code; provided, if the landlord recovered possession of the covered rental unit for use by the landlord or landlord's relative in accordance with § 15.09.320.B of this code, the landlord or landlord's relative must have continuously resided in the covered rental unit for three years before vacating for this § 15.09.215.D to apply.
2. This § 15.09.215.D shall not apply where:
(a) The vacancy was the result of conduct of the landlord or the landlord's agent, which constituted harassment prohibited by § 15.09.340 of this code or other applicable law, constructive eviction, or a breach of the covenant of quiet enjoyment of the property; or
(b) The vacancy was the result of an eviction of a tenant within the first 12 months of tenant's occupancy of the rental unit, as set forth in § 15.09.310.A.2 of this code.
E. Housing service adjustments. A decrease in housing services is considered an increase in rent. A tenant may petition for an adjustment in rent based on a decrease in housing services under the process set forth in § 15.09.235.
(Ord. No. 2020-014 § 2)