13.76.110
A. Once each year, the board shall consider setting and adjusting the rent ceiling for all rental units covered by this chapter in general and/or particular categories of rental units covered by this chapter deemed appropriate by the board. The board shall hold at least two public hearings prior to making any annual general adjustment of the rent ceilings. The board shall publish and publicize notices of the date, time, and place of the public hearings at least thirty days prior to the hearing date. The two required public hearings shall be conducted and the annual general adjustment shall be set between September 1 and October 31, of each year. The annual adjustment shall become effective the following January 1.
B. In making annual general adjustments of the rent ceiling, the board shall:
1. Adjust the rent ceiling upward by granting those landlords who pay for utilities a utility adjustment for increases in the city of Berkeley for utilities.
2. Adjust the rent ceiling upward by granting landlords a property tax, maintenance and operating expense increase adjustment (exclusive of utilities) for increases in the city of Berkeley for property taxes and maintenance and operating expenses.
3. Adjust the rent ceiling downward by requiring landlords to decrease rents for any decreases in the city of Berkeley for property taxes.
4. Adjust the rent ceiling downward by requiring landlords who pay for utilities to decrease rents for any decreases in the city of Berkeley for utilities.
In adjusting rent ceilings under this subsection, the board shall adopt a formula or formulas of general application. This formula will be based upon the annual rent registration forms, surveys, information and testimonies, presented at public hearings, and other available data indicating increases or decreases in the expenses relating to the rental housing market in the city of Berkeley set forth in this subsection. For maintenance and operating expense adjustments, the board may also use survey data from surrounding communities where appropriate. The board shall make no more than one annual adjustment of rent ceilings per rental units per year.
Adoption of a formula greater than forty-five percent of the increase in the Consumer Price Index for the twelve months ending the previous June 30 shall require the affirmative vote of six commissioners, other provisions notwithstanding. Adoption of such a formula shall be a specific and special exception to the requirement of only five affirmative votes to make a decision. For the purposes of this subsection, the Consumer Price Index shall mean the Consumer Price Index for all urban consumers in San Francisco - Oakland, all items (1967 equals 100), as reported by the Bureau of Labor Statistics of the U.S. Department of Labor, as it pertains to the city of Berkeley.
C. An upward general adjustment in rent ceilings does not automatically provide for a rent increase. Allowable rent increases pursuant to a general upward adjustment shall become effective only after the landlord gives the tenant at least a thirty days written notice of such rent increase and the notice period expires.
D. If the board makes a downward general adjustment in the rent ceilings, landlords of rental units to which this adjustment applies shall give tenants of such rental units written notice of the rent decrease to which they are entitled. Such rent decreases shall take effect not later than thirty days after the effective date set by the board for the downward general adjustment.
E. If the maximum allowable rent specified under this chapter for a rental unit is greater than the rent specified for such unit in the rental agreement, the lower rent specified in the rental agreement shall be the maximum allowable rent until the rental agreement expires. If the maximum allowable rent specified under this chapter for a rental unit is less than the rent specified for such unit in the rental agreement, the lower rent specified under this chapter shall be the maximum allowable rent.
F. No rent increase pursuant to an upward general adjustment of a rent ceiling shall be effective if the landlord:
1. Has continued to fail to comply, after order of the board, with any provisions of this chapter and/or orders or regulations issued thereunder, or2. Has failed to bring the rental unit into compliance with the implied warranty of habitability, or
3. Has failed to make repairs as ordered by the housing inspection services of the city of Berkeley, or
4. Has failed to completely register by September 1, except as provided in Subsection 11.g. below.
G. The amount of an upward general adjustment for which a landlord shall be eligible shall decrease by ten percent per month for each month beyond October 1 for which the landlord fails to register.
H. A landlord who is ineligible to raise rents under an upward general adjustment for
an entire calendar year shall not be eligible to raise rents under that particular general adjustment
in future years.
(Ord. 6008-NS § 1, 1990: Ord. 5467-NS § 11, 1982: Ord. 5261-NS § 11, 1980.)