Agenda Packet_2022-10-18 - Laserfiche WebLink

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EXHIBIT 1 Section 8-3141 — Reasonable Rate of Return. This ordinance allows for an annual adjustment of Residential Real PProperty or n4Mobilehome sSpace rRent of up to three percent (3%), or eighty (80%) of the change in the Consumer Price Index, whichever is less. A Consumer Price Index - based increase is found and determined to provide a just and reasonable return on an eOwner's property, and has been adopted to encourage good management, reward efficiency, and discourage the flight of capital, as well as to be commensurate with returns on comparable investments, but not so high as to defeat the purpose of curtailing excessive rRents and rental increases. Notwithstanding the foregoing, however, any eOwner of Residential Real i4Property or a mMobilehome pPark who contends that the limit on rental increases set forth in Section 8-3140 above will prevent the eOwner from receiving a fair and reasonable return on their property may petition for relief from the cap set forth in section 8-3140 pursuant to the procedures set forth in this Division. Section 8-3142 — Fair Return Petition for Rent Increase. (a) A Landlord may submit a Fair Return Petition to the Program Administrator in accordance with the procedures set forth in this Division requesting a Rent Increase in excess of that provided in this Division in order to obtain a fair and reasonable return on the Rental Unit. (b) Standard of Review. All relevant factors shall be considered when evaluating a Fair Return Petition, including, but not limited to, the following: 1) Changes in the Consumer Price Index for All Urban Consumers in the Los Angeles -Long Beach -Anaheim Metropolitan Area published by the Bureau of Labor Statistics; 2) The Rent lawfully charged for comparable Rental Units in the City; 3) The length of time since the last determination on a Fair Return Petition, or the last Rent +_Increase if no previous Fair Return Petition has been made; 4) The completion of any rehabilitation work related to the Rental Unit, and the cost thereof, including materials, labor, construction interest, permit fees, and other items deemed appropriate; 5) Changes in property taxes or other taxes related to the Rental Unit; 6) Changes in the Rent paid by the Landlord for the lease of the Rental Unit; 7) Changes in the utility charges for the Rental Unit paid by the Landlord, and the extent, if any, of reimbursement from the Tenants; 8) Changes in reasonable Operating Expenses; 9) Changes in Net Operating Income; Order I- 21 — 26 10/18/2022 PagegV