It may be determined that the base year net operating income yielded other than a fair return on property, in which case, the base year Net Operating Income may be adjusted accordingly. In order to make such a determination, the Hearing Officer must make at least one of the following findings:
A. The owner's operating and maintenance expenses in the base year were unusually high or low in comparison to other years. In such instances, adjustments may be made in calculating such expenses so the base year operating expenses reflect average expenses for the property over a reasonable period of time. The hearing officer shall consider the following factors:
1. The owners made substantial capital improvements during 1988 which were not reflected in the rent levels on the base date.
2. Substantial repairs were made due to damage caused by natural disaster or vandalism which management has taken appropriate action to reduce.
3. Maintenance and repair were below accepted standards so as to cause significant deterioration in the quality of housing services.
4. Other expenses were unreasonably high or low notwithstanding the following of prudent business measures.
B. The rental rates on the base date were disproportionate due to enumerated factors below. In such instances, adjustments may be made in calculating gross rents consistent with the purpose of this Chapter.
1. The rental rates on the base date were substantially higher or lower than in preceding months by reason of premiums being charged or rebates being given for reasons unique to particular units or limited to the period determining the base rent.
2. The rent on the base date was substantially higher or lower than at other times of the year by reason of seasonal demand or seasonal variations in rent.
3. The rental rates on the base date were exceptionally high or low due to other factors which would cause the application of the base year net operating income to result in gross inequity to either the owner or tenant.
(Ord. MC-1481, 4-14-18; Ord. MC-865, 3-24-93)