Sec. 6-232. Definitions.
Allowable increase percentage means the standard amount that
the rent of a Covered Unit may be raised within the following
Calendar Year, unless a Landlord is entitled to additional
increases as provided in Sections 6-233 or 6-234 below. The
allowable increase percentage shall be determined on September 1
of each year beginning on September 1, 2021, and shall be equal
to 70 percent of the change in the Consumer Price Index (CPI-U)
for Greater Boston Metro Area for the preceding twelve (12)
months, as published in August by the United States Bureau of
Labor Statistics or its designee. For the purposes of this
ordinance, the Rent Board shall presume that the Allowable
increase percentage is sufficient to allow a reasonably prudent
landlord who received a fair return on investment prior to the
enactment of this ordinance to continue to maintain a fair net
operating income that increases over time at a just and
reasonable rate, yielding a fair return on investment under the
normal course of doing business.
Base rent means the initial amount of rent that a Landlord
charged for a Covered Unit prior to the increases allowed under
this ordinance, as more specifically defined in Section 6-233 of
this Article. For the purposes of the ordinance, the Rent Board
shall presume that the Base Rent was sufficient to have provided
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the Landlord a fair return on investment prior to the enactment
of this ordinance.
Banked rent means the Base Rent for a Covered Unit, plus any
increase in rent to which the Landlord was entitled under
Sections 6-233 and 6-234 below, but that was not yet applied to
the rent charged to a Tenant.