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Rent Increases & Cost Pass-Through
Recent Program Updates 

Starting September 1, 2016: debt service and capital improvement pass-through petitions will no longer be accepted by our office. Capital improvement cost pass-through petitions will be accepted beginning again in 2017.

The new Fair Return petition will be available soon. If you have questions about these changes, please call the Rental Rights & Referrals Program at 408-975-4480. 

Allowable Rent Increase Under the Ordinance
 

The City Council has directed that changes be made to the Apartment Rent Ordinance. Staff anticipates that revisions to the Ordinance will be completed by the end of 2016.

Beginning June 17, 2016, an Interim Ordinance will be in effect until revisions to Apartment Rent Ordinance are completed. The Interim Ordinance reduces the annual allowable rent increase from 8% to 5% and outlines the process for filing cost pass-through petitions.  

After the revisions to the Apartment Rent Ordinance are complete the annual allowable rent increase will be set at 5%. Owners will be allowed to bank up to 10% of unused annual increases. After combining the annual allowable increase, any banked increase, and capital improvement cost-pass through awards the annual increase can be no more than 8%.

Exceptions to the Allowable Rent Increases
Rent increases that are exempt from these requirements include an increase after the rental unit has been voluntarily vacated by the tenant and an increase after eviction of a tenant. 

Under the Apartment Rent Ordinance, both property owners and tenants may file a petition. Property owners who file a petition to increase rent in excess 5% must submit a cost worksheet to the Rental Rights and Referrals Program. Pending a decision by the Hearing Officer, the amount of rent in excess of 5% is deferred and only an 5% rent increase should be demanded or paid.

Starting September 1, 2016, debt service and capital improvement pass-through petitions will no longer be accepted by our office. Capital improvement cost pass-through petitions will be accepted beginning again in 2017.

Tenants with a rent increase subject to review and/or service reduction claims or housing code violations may file a petition. 

Service Reductions 
A service reduction has occurred when the level of service provided by the landlord has been reduced without a corresponding decrease in rent. The Ordinance allows tenants to request an administrative hearing for a service reduction claim. The tenant has the burden of proof to their claim by submitting evidence such as maintenance record requests, photographs, and/or testimony. If the claim is proven, the Hearing Officer will determine the percentage that the usability of the rental unit was reduced and the duration of the reduction. If the rent increase is unreasonable, the Hearing Officer may reduce a rent increase, order a credit against the paid and/or permanent or temporary reduction in future rent. 

Housing Code Violations 
A housing code violation has occurred when there are health and safety defects which violate the San Jose Housing Code and/or California Civil Code Sections 1941.1 and 1941.2. The tenant has the burden of proof to their claim by submitting evidence such as a Code Enforcement Inspection which is considered presumptive evidence; unless there is sufficient evidence to the contrary, violations listed in the report are considered to have been proven to exist. Issues of this type may also be service reductions. The Hearing Officer may reduce, disallow or reasonably condition any rent increase based on the severity of any Housing Code violations.