Berkeley restricts how landlords may pass operating costs and capital improvements through to tenants, requiring Rent Stabilization Board petitions and amortization rather than lump-sum surcharges.
Under BMC 13.76 and Rent Board regulations, capital improvement pass-throughs must be petitioned and approved before any rent increase. Approved costs amortize over the useful life of the improvement and cap at ten percent of base rent annually. Routine repairs and ordinary maintenance never qualify. Property tax pass-throughs are barred. Utility pass-throughs require 30-day notice and may be challenged at the Board. The framework prevents landlords from converting normal upkeep into rent increases on Costa-Hawkins-protected pre-1995 stock.
Imposing unauthorized pass-throughs, exceeding the ten percent annual cap, or treating maintenance as capital improvement triggers rent rollback orders and refund duties plus Rent Board penalties.
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