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Petitions. Said expenses shall be amortized over a five-year period, unless <br />the Rent Board concludes that a different period is more reasonable. <br />Allowable legal expenses which are of a nature that does not recur <br />annually shall be amortized over a reasonable period of time. At the end of <br />the amortization period, the allowable monthly Rent shall be decreased by <br />any amount it was increased because of the application of this provision. <br />(ix) Interest Allowance for Expenses that are Amortized. An interest <br />allowance shall be allowed on the cost of amortized expenses; the <br />allowance shall be the interest rate on the cost of the amortized expense <br />equal to the "average rate" for thirty-year fixed rate on home mortgages <br />plus two percent. The "average rate" shall be the rate Freddie Mac last <br />published in its weekly Primary Mortgage Market Survey (PMMS) as of <br />the date of the initial submission of the petition. In the event that this rate <br />is no longer published, the Rent Board shall designate by regulations an <br />index that is most comparable to the PMMS index, which shall be used. <br />(B) Exclusions from Operating Expenses. Operating expenses shall not include <br />the following: <br />(i) Mortgage principal or interest payments or other debt service costs. <br />(ii) Any penalties, fees or interest assessed or awarded for violation of any <br />provision of this chapter or of any other provision of law. <br />(iii) Land lease expenses. <br />(iv) Political contributions and payments to organizations that are <br />substantially devoted to legislative lobbying purposes. <br />(v) Depreciation. <br />(vi) Any expenses for which the Landlord has been reimbursed by any <br />utility rebate or discount, Security Deposit, insurance settlement, judgment <br />for damages, settlement or any other method or device. <br />(vii) Unreasonable increases in expenses since the base year. <br />(viii) Expenses associated with the provision of master -metered gas and <br />electricity services. <br />(ix) Expenses which are attributable to unreasonable delays in performing <br />necessary maintenance or repair work or the failure to complete necessary <br />replacements (e.g., a roof replacement may be a reasonable expense, but if <br />water damage occurred as a result of unreasonable delays in repairing or <br />replacing the roof, it would not be reasonable to pass through the cost of <br />repairing the water damage). <br />ME <br />