The Director's decision on a rent adjustment application, pass-through cost recovery application or a tenant petition for noncompliance will be given in a notice of decision. In the case of a decision on a rent adjustment application or pass-through cost recovery application, the landlord shall, within five calendar days after the decision date identified in a notice of decision that approves an increase in rent or a pass-through of capital improvement costs, deliver a copy of the notice to each affected tenant. In the case of a decision on a tenant petition for noncompliance, the Director shall serve the notice of decision on the tenant and the landlord concurrently. The Director's decision may be appealed to a hearing officer in accordance with the following procedures:
A. Appeal. A landlord or an affected tenant who wishes to contest the Director's decision on a rent adjustment application or pass-through cost recovery application, or a landlord or tenant who wishes to contest the Director's decision on a tenant petition for noncompliance, may file a request for appeal of the Director's decision with the housing division requesting a hearing, which will be heard in accordance with the procedures set forth in this § 15.09.240.B.
1. Appeals shall be submitted in writing on a request for appeal form and filed with the housing division within 15 calendar days after the decision date identified in the notice of decision. If the filing deadline falls on a weekend, holiday, or other day when city hall is officially closed, the filing deadline will extend to the following city hall business day.
2. The request for appeal shall specifically state the pertinent facts and the basis for the appeal as required by § 15.09.240.A.5.
3. A landlord who files a request for appeal shall do the following:
a. Mail a copy of the request for appeal by first class mail, postage prepaid, to all tenants who would be subject to a rent increase or pass-through of capital improvement costs, or the tenant who filed the petition for noncompliance, as applicable, within five calendar days after the date the request for appeal is filed with the housing division.
b. Within ten calendar days after the date the request for appeal is filed with the housing division, the landlord shall file a proof of service signed under penalty of perjury stating that a copy of the request for appeal was mailed to all such tenants.
4. A tenant who files a request for appeal shall do the following:
a. Mail a copy of the request for appeal by first class mail, postage prepaid, to the landlord or landlord's agent within five calendar days after the date the request for appeal is filed with the housing division.
b. Within ten calendar days after the date the request for appeal is filed with the housing division, the tenant shall file a proof of service signed under penalty of perjury stating that a copy of the request for appeal was mailed to the landlord or landlord's agent.
5. The request for appeal shall include:
a. A general statement, specifying the basis for the appeal and the specific aspect of the decision being appealed, and shall be based upon an error in fact or dispute of findings.
b. Supporting evidence substantiating the basis for the appeal.
c. Any other documentation or information the appealing party wants the hearing officer to consider.
B. Hearing procedure.
1. A hearing on a request for appeal will be scheduled before a hearing officer for a date no sooner than 15 days and no later than 60 days after receipt of the request for appeal and proof of service in compliance with the requirements of § 15.09.240.A, unless the hearing officer determines that good cause exists for an extension of time.
2. Upon setting the hearing date, the hearing officer shall send written notice to the appealing party of the date, time and place set for the hearing.
3. If the landlord is the appealing party, upon receipt of the notice setting the date, time and place of the hearing, the landlord shall, in the case of a request for appeal of a rent adjustment application or pass-through cost recovery application, post such notice in a conspicuous place at the affected property including the covered rental units that are the subject of the appeal. Such notice shall be placed on a written instrument that is at least 11 inches in width and 17 inches in length, and shall be placed not less than four feet above ground level in the common area, at the entry or entries to the building or units, or other similar location or locations as necessary to provide tenants a reasonable opportunity to view the notice and be advised of the hearing. Within five calendar days of receipt of the notice of hearing, the landlord shall personally deliver a copy of the notice to each tenant in the affected covered rental units. In the case of landlord's request for appeal of a tenant petition for noncompliance, the hearing officer shall send a copy of the notice setting the date, time and place of the hearing to the tenant concurrently with sending the notice to the landlord.
4. If the tenant is the appealing party, the hearing officer shall send a copy of the notice setting the date, time and place of the hearing to the landlord concurrently with sending the notice to the tenant.
5. At the hearing, the appealing party shall be given the opportunity to testify, call witnesses and to present evidence concerning the appeal. The hearing officer may also hear testimony and consider written evidence offered by the tenants in the affected covered rental units and, if a tenant is the appealing party, hear testimony and consider written evidence offered by the landlord.
6. The hearing officer may continue the hearing and request additional information from the landlord, affected tenants, or petitioning tenant, as applicable, prior to issuing a written decision.
7. The hearing officer shall have the power to issue orders to maintain order and decorum during the hearing.
8. All hearings conducted by the hearing officer shall be open to the public.
C. Hearing continuance. The hearing officer may, in his or her discretion, grant a continuance of the hearing date upon a request and a showing of good cause. The request must be made in writing and be received by the hearing officer at least five business days prior to the hearing date. If the landlord is the party requesting an extension, the landlord must personally deliver a copy of the request to the affected tenant(s). If a tenant is the party requesting an extension, the tenant must personally deliver a copy of the request to the landlord or landlord's agent. In no event shall the continuance be longer than 15 calendar days from the originally scheduled hearing date.
D. Hearing officer decision. After considering all of the testimony and evidence submitted at the hearing, within 20 calendar days after the conclusion of the hearing, the hearing officer shall issue a written decision denying, affirming or modifying the Director's decision and shall adopt written findings in support of that decision. The written decision shall be served by first-class mail, postage prepaid on the appealing party. If the landlord is the appealing party and the appeal concerned a rent adjustment application or pass-through cost recovery application, the landlord shall post such notice in a conspicuous place at the property containing the affected covered rental units and within five calendar days of receipt of the written decision, the landlord shall personally deliver a copy of the written decision to each tenant in the affected covered rental units. If a tenant is the appealing party or if the landlord is the appealing party and the appeal concerned a tenant petition for noncompliance, the hearing officer shall serve a copy of the written decision on the landlord and the tenant concurrently. The hearing officer's decision shall be final, unless an administrative penalty has been assessed.
E. Judicial review of hearing officer decision. Any person directly aggrieved by an administrative decision of a hearing officer pertaining to a request for appeal of a Director's decision on a rent adjustment application or pass-through cost recovery application, may seek judicial review in the Superior Court pursuant to Cal. Government Code § 53069.4 and/or Cal. Code of Civil Procedure §§ 1094.5 and 1094.6.
(Ord. No. 2020-014 § 2)