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<br /> <br /> <br /> <br />17 17 <br />Landlord Capital Improvement Petitions <br />Some jurisdictions allow for a separate capital improvement pass-through petition that is considered <br />separately from the fair return petition. A capital improvement is one that materially adds to the value of <br />the property (this is often detailed as a specific amount in the ordinance), appreciably prolongs its useful <br />life, or adapts it to new uses, and which may be amortized over the useful life of the improvement of the <br />building. As such, these fees are considered temporary and do not permanently increase a tenant’s <br />rent. In general, a capital improvement petition would allow a landlord to increase rents to recover the <br />cost of capital improvements when the improvement(s) benefit the units in question and the <br />improvements were not necessitated by the current landlord’s neglect or failure to maintain the property. <br />In some cases, the monthly rent increase cannot exceed a certain percentage of a tenant’s monthly <br />rental amount. In this case, the capital expense is amortized, with interest, over a longer term to allow <br />the landlord to recover the cost of capital improvements while not causing an undue burden to the <br />tenant. A capital expense can affect all the units in a building, some of the units in a building, or just one <br />unit in a building. Examples of capital improvements include new windows, a roof replacement, and <br />exterior painting to the entire building. Repair and maintenance work, such as replacing a broken <br />windowpane, patching a roof, clearing a clogged pipe, or unit-specific repairs are not considered capital <br />improvements. <br /> <br />Tenant Petitions <br />All of the Sample Jurisdictions have provisions in their programs that allow a tenant to file a petition <br />asserting various types of claims against a landlord. Examples include a decrease in rent due to a <br />substantial decrease in housing services, failure to repair or maintain a unit, or failure to discontinue a <br />capital or utility pass-through. Table 6 presents a summary of the Sample Jurisdictions’ petitions. <br /> <br />Table 6: Sample Jurisdictions’ Petitions <br />Jurisdiction Type of Petition Petition Fee Approves <br />Petitions <br />Petitions <br />Received <br />Annually <br />Alameda <br />Fair Return, <br />Separate Capital <br />Improvement <br />Plan, Tenant <br /> <br />$0 (None) <br /> <br />Rent Review <br />Advisory <br />Committee, <br />Appeal to Hearing <br />Officer <br /> <br />3 Fair Returns, 17 <br />Tenant Petitions, <br />10 progress to <br />hearing <br />Berkeley <br />Fair Return, <br />Separate Capital <br />Improvement, <br />Tenant <br /> <br />$0 (None) <br />Petition; $100- <br />$200 Fair Return <br />and Capital <br />Improvement <br />appeal <br /> <br />Hearing <br />Examiner, Appeal <br />to Rent <br />Stabilization <br />Board <br /> <br />0 Fair Returns <br />since Ordinance <br />Effective date, <br />Limited Capital <br />Improvements <br />Beverly Hills <br />Fair Return, <br />Separate Capital <br />Improvement, <br />Tenant <br />$896 Fair Return <br />and Capital <br />Improvement; $0 <br />(None) Tenant <br />petition <br /> <br />Hearing Officer, <br />Appeal to Rent <br />Stabilization <br />Commission <br /> <br />0 Fair Returns