1113. 1991 Inflation Adjustment Order
(1) The purpose of this regulation is to comply with the principles set forth in Searle
v. City of Berkeley Rent Stabilization Board, Court of Appeal No. 638429-8 (July 18, 1990) and
to restore to owners of Berkeley rental property erosion of their net operating incomes caused by
inflation, without requiring each owner to file and pursue an individual petition, while at the
same time protecting tenants, particularly low-income tenants, from unnecessarily high rent
increases.
(2) In accordance with the Rent Stabilization and Eviction for Good Cause Ordinance
as amended by the Tenants Rights Amendments Act of 1982 and the purposes stated in
subsection (A), the Rent Stabilization Board hereby adjusts the 1991 rent ceilings (exclusive of
temporary increases in rent ceilings such as capital improvements and exclusive of increases
under Regulation 1280) upward by an amount calculated as follows, for all units covered by the
Ordinance. The increase amount shall be the May 31, 1980 lawful rent ceiling, multiplied by .45,
provided that:
For purposes of calculating the new rent ceiling, the 1991 rent ceiling is defined as the base rent
ceiling established in Section 10 of the Ordinance plus any permanent adjustment of the base rent
ceiling granted by the Board (except increases under Regulation 1280). Regulations 1101(2),
1103(2), 1104(3), 1106(3), 1107(3), 1108(2), 1110(2), and 1111(2) permitted, but did not
require, that rent ceilings adjusted pursuant to the order be rounded to the nearest dollar amount.
For purposes of construing these prior annual general adjustments, whenever the order permitted
rounding, it shall be assumed that any fraction of a dollar of fifty cents or more was rounded up
and that any fraction of a dollar of forty-nine cents or less was not rounded down. It is the intent
of this paragraph to minimize confusion about the exact amount of the rent ceiling established by
this order and to incorporate the computations used in certification proceedings into this order.
(3) Rent ceilings adjusted pursuant to this order shall be rounded to the nearest dollar
amount. Amounts of fifty cents or more shall be rounded up; amounts of forty-nine cents or less
shall be rounded down.
(4) The adjustments granted by this order shall become effective on November 1,
1991, provided the landlord is otherwise entitled to the adjustment pursuant to the provisions of
the Ordinance and this order.
(5) The upward general adjustment in rent ceilings granted in this order does not
automatically provide for a rent increase. Rent increases pursuant to this order shall become
effective only after the landlord gives the tenant(s) notice in accord with state law. Where a new
tenancy is established on or after October 1, 1991 the increase may be imposed as a term of the
new tenancy, without the necessity for a separate notice. Prior to January 1, 1992, increase
amounts may be calculated and the increase imposed without prior action by the Board, provided
that:
(a) The rental amount shall be subsequently reduced if necessary to equal the
amount stated in subsequent notice given by the Board:
(b) The landlord agrees that, if subsequent notice given by the Board provides
for a smaller increase amount, the tenant may withhold the amount overpaid from future
payments of rent, without further Board action; and
(c) In any case where a tenant gives notice to the landlord and the Board,
consistent with Regulation 1274 and this regulation, that Regulation 1274(C) applies to limit the
amount of the increase, the amount of the increase prior to January 1, 1992 and the amount of the
increase on and after January 1, 1992 shall be limited pursuant to the applicable provisions of
Regulation 1274(C)(1).
(d) For increases taken prior to January 1, 1992, the amount of the increase
shall be calculated on a worksheet furnished or approved by the Board, and the landlord shall file
with the Board a copy of the rent increase notice to the tenant(s) and the completed worksheet.
In a case where the lawful rent ceiling has been previously increased in order to adjust net
operating income based on the Consumer Price Index, the worksheet shall provide for an
appropriate reduction in the amount of the increase.
Each notice to a tenant of a rent increase pursuant to this order shall be substantially in the
following form:
Thirty Day Notice of Rent Increase
This notice is provided pursuant to the 1991 Inflation Adjustment Order of
the Rent Stabilization Board.
Tenant's name: _________________________________________________________
Street address: _________________________________________________________
The present rent on your unit is $ _____________ per month. Your rent
will increase by ______________ pursuant to the 1991 Inflation Adjustment
Order.
Your new rent will be $ _____________ per month beginning ______________ .
(This date must be at least 30 days after service of the Notice of Rent
Increase.)
The amount of the increase was calculated as shown on the attached
worksheet, which has been completed on a form provided by the Rent
Stabilization Board. If the worksheet shows an amount as the "Balance of
Searle Increase", that balance can go into effect as an additional
increase in six months. You must receive separate notice for the
remainder of the increase to go into effect.
We agree that, if the Rent Board later gives notice providing for a
smaller increase for your unit, you may withhold from future rent the full
amount you have overpaid based on this notice.
Under Regulation 1274, you are entitled to further limit your rent
increase if your household includes a qualifying lower-income person and
your rent otherwise would be more than 30% of your household income. If
you believe you qualify, you must notify us and the Rent Board within 20
days of this notice. If you do so, your rent will now increase under the
order only by 10% of its current amount (10% of your present rent is),
to $ ___________________ .
Advice concerning this notice and the rental history of the unit is
available from the Rent Stabilization Board Public Information Unit, 2100
Milvia Street, Berkeley, CA, 9:00 a.m. - 4:30 p.m., weekdays, 644-6128.
_____________________ ________________________________________________
Date Property Owner/Manager
(e) For increases taken on or after May 1, 1992 other than annual increases
permitted under Regulation 1274(c), the notice of rent increase pursuant to this order shall be
substantially in the following form:
Thirty Day Notice of Rent Increase
This notice is provided pursuant to the 1991 Inflation Adjustment Order of
the Rent Stabilization Board.
Tenant's name: _______________________________________________________
Street address: _______________________________________________________
The present rent on your unit is $ _________ per month. Your rent will
increase by $ ___________ . This increase represents all or part of the
balance of the increase permitted under the 1991 Inflation Adjustment
Order (Regulation 1113) which has not been previously imposed. The
maximum amount of the increase was determined by the Rent Stabilization
Board and stated in a Notice of Apparent Maximum Lawful Rent Ceiling
prepared for your unit and mailed to you by the Board. If you did not
receive such a Notice, you may request a copy from the Board.
Your new rent will be $ ____________ per month beginning _______________ .
(This date must be at least 30 days after service of the Notice of Rent
Increase.)
Under Regulation 1274, you are entitled to limit your rent increase if
your household includes a qualifying lower-income person and your rent
otherwise would be more than 30% of your household income. If you believe
you qualify, you must notify us and the Rent Board within 20 days of this
notice.
Information concerning this notice and the rental history of the unit is
available from the Rent Stabilization Board Public Information Unit, 2100
Milvia Street, Berkeley, CA, 9.00 a.m. - 4:30 p.m. weekdays, 644-6128.
___________________ __________________________________________________
Date Property Owner/Manager
(6) Landlords are not required under the Ordinance and/or this order to increase rents
at all or by the full amount of the adjustment granted in this order. Adjustments authorized by
this regulation shall be added to rent ceilings effective November 1, 1991 whether or not the
landlord increases rents. Implementation of the increased ceilings shall remain subject to
Regulation 1274.
(7) If the maximum allowable rent specified under this order for a rental unit is
greater than the maximum rent allowed for such unit in the rental agreement, the lower rent
specified in the rental agreement shall be the lawful rent during the period for which the rental
agreement specifies a lower rent. If the maximum allowable rent specified under this order for a
rental unit is less than the rent specified for such unit in the rental agreement, the lower rent
specified under this order shall be the lawful rent.
(8) No rent increase pursuant to this order shall be effective if the landlord:
(a) has failed to register any rental unit on the property in accordance with
Section 8 of the Ordinance and/or orders or regulations of the Board; or
(b) demands, accepts, receives or retains any payment in excess of the
maximum allowable rent for the unit permitted by the Ordinance; or
(c) has failed to comply, after order of the Board, with any provisions of the
Ordinance and/or regulations of the Board concerning the affected rental unit;
(d) has failed to bring any rental unit into compliance with the implied
warranty of habitability. Such compliance means the unit substantially complies with the City of
Berkeley's building, housing and health codes which materially affect the health and safety of
tenant(s);
(e) has failed to make repairs as ordered by the housing inspection services of
the City of Berkeley; or
(f) has failed to annually return the interest on security deposits to the
tenant(s) as required by Section 7 of the Ordinance.
(9) A landlord who is ineligible to raise rents under this adjustment for an entire
calendar year shall be able to raise rents under this adjustment in future years upon cure of the
relevant condition(s) listed in subparagraph 8.
[Revised Regulation 1113 effective March 20, 1992]
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