Section 1805

Citation: Section 1805
Parent Document: Santa Monica Properties v. Santa Monica Rent Control Board, 203 Cal. App. 4th 739 (2012)
Jurisdiction: California (state)
Effective Date: 2012-02-16
Original Source: https://www.courtlistener.com/opinion/5810885/santa-monica-properties-v-santa... ↗

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Section 1805 governs “Individual and general adjustments of ceilings on allowable rents.” Section 1805(e) prescribes various factors, in the form of both a mandatory nature, and a nonexhaustive, illustrative nature, to be considered in making a rent adjustment; it provides: “In making individual and general adjustments] of the rent ceiling, the Board shall consider the purposes of this Article and the requirements of law. The Board may adopt as its fair return standard any lawful formula, including but not limited to one based on investment or net operating income. The Board shall consider all factors relevant to the formula it employs; such factors may include: [(1)] increases or decreases in operating and maintenance expenses, [(2)] the extent of utilities paid by the landlord, [(3)] necessary and reasonable capital improvement of the controlled rental unit as distinguished from normal repair, replacement and maintenance, [(4)] increases or decreases in living space, furniture, furnishings, equipment, or services, [(5)] substantial deterioration of the controlled rental unit other than as a result of ordinary wear and tear, [(6)] failure on the part of the landlord to provide adequate housing services or to comply substantially with applicable housing, health and safety codes, [(7)] Federal and State income tax benefits, [(8)] the speculative nature of the investment, whether or not the property was acquired or is held as a long term or short term investment, [(9)] the landlord’s rate of return on investment, [(10)] the landlord’s current and base date Net Operating Income, and [(H)] any other factor deemed relevant by [RGB] in providing the landlord a fair return.” (Italics & brackets added.) Sterling

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