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Section 8-3143 -- Capital Improvement Petition (a) Effective July 1, 2023, or as modified by resolution of the City Council, a Landlord may submit a Capital Improvement Petition to the Program Administrator in accordance with the procedures set forth in this Division requesting a pass through cost to the Tenants to cover expenses incurred by the Landlord to complete Capital Improvements for the Rental Unit pursuant to the following provisions: 1) The Capital Improvement was paid for and completed after November 19, 2021 (the effective date of the first adopted Rent Stabilization Ordinance); 2) The Capital Improvement was paid for and completed prior to the filing of the Capital Improvement Petition; 3) A Capital Improvement Petition must be initiated by the Landlord within two (2) years of completion of the Capital Improvement; 4) A Capital Improvement Petition shall not apply to Rental Units or new Tenants whose initial Rent was established after the Landlord completed the Capital Improvement; 5) The Landlord may not require a Tenant to pay any amount of any cost that is attributable to any period of time that the Tenant was not entitled to use and occupy the Rental Unit; 6) The Landlord may not require a Tenant to pay more than the Tenant's share of the cost attributable to that Tenant's Rental Unit that is permitted to be passed through to the Tenant; 7) If the Capital Improvement inures solely to the benefit of one or more of the Rental Units, but to less than all, the surcharge shall be so annualized, but shall be applied and/or prorated only with respect to the one or more Rental Units actually so benefited; 8) Equipment otherwise eligible as a Capital Improvement will not be considered if a "use fee" is charged (i.e. -- coin operated washer and dryers); and, 9) Pass through costs for Capital Improvements shall not be considered Rent and shall not be increased when Rent Increases, nor shall they be considered Rent for purposes of calculating a Rent Increase. (b) Calculating Capital Improvements. Any Capital Improvement pass - through cost must be calculated according to the following: 1) Capital Improvement costs must be amortized over the useful life of the Capital Improvement, not to exceed ten percent (10%) of the current Rent; for the purposes of such computation, the current Rent for any time period shall not include any Capital Improvement pass -through amounts; Ordinance No. NS-3027 Page 25 of 43 City Council Page 111 A-3615 5/16/2023