Apr 5, 2016 - CITY OF OAKLAND. P O BOX 70243 ⢠OAKLAND, CALIFORNIA 94612-2043. Housing & Community Development Dep
CITY OF OAKLAND PO BOX 70243 OAKLAND, CALIFORNIA
94612-2043
Housing & Community Development Department Rent Adjustment Program
(510) 238-3721 FAX (510) 238-6181 TDD (510) 238-3254
NOTICE TO OAKLAND RESIDENTIAL RENTAL PROPERTY OWNERS
Dear Property Owner: Oakland is experiencing a severe housing affordability crisis that threatens the health and welfare of its citizenry. In response, on April 5, 2016, the Oakland City Council adopted a 90-day emergency ordinance to temporarily:
Apply rent control laws to owner-occupied duplexes and triplexes.
Suspend exemptions for Substantial Rehabilitations, unless the rehab is already 25% or more underway as of April 5, 2016 (See bullet below).
Place a 90-day moratorium on rent increases above the annual CPI adjustment (1.7%).
In addition to the moratorium, the City Council reaffirmed the prohibition on illegal evictions (under Oakland Municipal Code 8.22.300) and directed the City Administrator to evaluate potential permanent, new rent stabilization measures. THE 90-DAY MORATORIUM ALLOWS THE FOLLOWING:
Any legal rent increase for which a notice to the tenant was properly given prior to April 5, 2016.
Any rent increase up to the annual CPI adjustment (1.7%).
Substantial Rehabilitation projects that are in progress for which no less than 25 percent of the substantial rehabilitation project costs, as identified in building permits, have been expended (actually paid or contractually committed to pay an expense) as of April 5, 2016, may be eligible for an exemption.
Setting initial rents after vacancies without restrictions pursuant to Costa Hawkins State law (See Costa Hawkins exceptions to this rule Oakland Municipal Code Section 8.22.080 C).
Pass-through of half of the Rent Program Service Fee to tenants.
THE RENT MORATORIUM DOES NOT APPLY TO:
Units controlled, regulated or subsidized by a governmental unit, agency or authority.
Units which were constructed and received a certificate of occupancy on or after January 1, 1983, per State law.
Single-family and condominium units exempt pursuant to Costa-Hawkins (California Civil Code Section 1954.52).
FAIR RETURN IF THE CPI RENT INCREASE IS INSUFFICIENT:
Any owner or manager of a residential unit who claims that the allowable rent under the moratorium is insufficient to provide a fair return based on maintaining the property’s net operating income may file a petition with the Rent Adjustment Program requesting relief from the moratorium by way of a rent increase in excess of the CPI Rent Adjustment necessary to provide a fair return.
METHODOLOGY FOR CALCULATING MAINTENANCE OF NET OPERATING INCOME:
The base rent year shall be the calendar year 2013.
The Maintenance of Net Operating Income (MNOI) for a property shall be the gross income less the following: property taxes, housing services costs, and the amortized costs of capital improvements. Gross income shall be the total of gross rents lawfully collectible from a property at 100% occupancy, plus any other consideration received or receivable for, or in connection with, the use or occupancy of rental units and housing services. Gross rents collectible shall include the imputed rental value of owner occupied units.
Owners may present methodologies alternative to MNOI for assessing their fair return if they believe that an MNOI analysis will not adequately address the fair return considerations in their cases. To pursue an alternative methodology, owners must first show that they cannot get a fair return under an MNOI analysis. They must specifically state in the petition the factual and legal basis for the claim, including any calculations.
OWNERS WHO VIOLATE THE ORDINANCE MAY RECEIVE:
A Warning Notice
An Administrative Citation per Oakland Municipal Code Section 1.12,or, for multiple violations, a City Penalty per O.M.C Section 1.08 For a copy of the Ordinance, please visit http://bit.ly/1qn3PAz. For more information and updates, please visit www.oaklandnet.com/rentadjustment, call (510) 238-3721 or visit the Rent Adjustment office, at 250 Frank H. Ogawa Plaza, 6th Floor, from 10:00 a.m. to Noon and 2:00 to 4:00 p.m. Monday through Friday.
Connie Taylor
Rent Adjustment Program Manager
