San Jose, CA Rental Property Rules: Pass-Through Charges (2026)

SJMC Chapter 17.23 (Apartment Rent Ordinance) limits how rent-stabilized apartment landlords recover above-base-rent costs. Capital improvement pass-throughs require a Housing Department petition showing the work primarily benefits tenants, with costs amortized over the asset's useful life and shared with tenants on a regulated formula. Debt service pass-throughs are available only after a 1979-era refinance and similarly require petition approval. Utility pass-throughs apply when a landlord shifts from owner-paid to tenant-paid utilities and require an approved adjustment. All approved add-ons must be itemized separately on each rent bill, never folded into base rent, and removed when the underlying cost finishes amortizing or the bond service ends.