A. If a landlord desires to increase the rent for a covered rental unit in an amount greater than allowed in § 15.09.215.B, and the landlord contends that the limitations on rent increases in § 15.09.215.B will prevent the landlord from receiving a fair and reasonable return with respect to the operation of the property containing the covered rental unit, the landlord may file a rent adjustment application with the housing division to request an increase in rent beyond the amount permitted under § 15.09.215.B.
B. The landlord shall mail a copy of the rent adjustment application by first class mail, postage prepaid, to all tenants whose rents are the subject of the application within five calendar days after the date the application is filed with the housing division. Within ten calendar days after the date the petition is filed, the landlord shall file a proof of service signed under penalty of perjury stating that a copy of the petition was mailed to all such tenants.
C. It shall be a rebuttable presumption that the annual net operating income earned by a landlord on June 11, 2019 and rent increases allowed under the Interim Rent Control Ordinance and § 15.09.215, provide the landlord with a fair and reasonable return with respect to the operation of their property. A landlord shall have the burden to prove that the additional rent increase is necessary to earn a fair and reasonable return with respect to the operation of their property.
D. All rent adjustments approved by the housing division pursuant to this § 15.09.220 may be imposed by landlord only after the following:
1. Landlord has provided written notice to the tenant of the rent increase for the covered rental unit in accordance with Cal. Civil Code § 827; and
2. Landlord has registered the covered rental unit pursuant to § 15.09.230 of this subchapter.
E. Rent adjustment applications will be considered and determined by the Director in accordance with housing division guidelines; and the Director's decision may be appealed to a hearing officer, in accordance with the procedures set forth in § 15.09.240.
(Ord. No. 2020-014 § 2)