(a) Fair return rent increase. In accordance with this Section and Method (2) regulations adopted by the Director:
(1) a landlord may apply to the Director to increase rent for a regulated unit in an amount that exceeds the annual rent increase allowance; and
(2) the Director must grant the application if the Director finds that the increase is necessary for the landlord to obtain a fair return on the regulated unit.
(b) For purposes of this Section, fair return means a return on investment:
(1) sufficient to offset operating expenses; and
(2) commensurate with returns on investments in other enterprises having comparable risks.
(c) The Director must adopt Method (2) regulations necessary to implement the requirements of this Section, including regulations to establish:
(1) a formula to determine the rent increase necessary to obtain a fair return for a regulated unit;
(2) application requirements, including the information an applicant must submit to demonstrate the rent necessary to obtain a fair return;
(3) a uniform system and procedures for processing applications;
(4) criteria the Director must use to evaluate and to grant or deny an application; and
(5) the duration of a rent increase approved under this Section. (2023 L.M.C., ch. 22. § 1.)