7.44.120 Rent increase allowed when.
A. Notwithstanding the provisions of Sections 7.44.060 and 7.44.080 of this chapter, an owner may charge a rent greater than the rent allowed under Sections 7.44.060 and 7.44.080 if the increased rent represents increased costs actually paid by the owner to the extent these costs exceed the twenty percent of the property tax savings retained by the owner. The total amount by which rents for a rental unit are increased under the provisions of this section shall not exceed the total cost increases allowed under this section reduced by the twenty percent of the property tax savings retained by the owner. Such increased costs must be related to the rental unit on which the increased rent is charged, and are limited to:
1. Increased costs resulting from the sale or refinancing pursuant to a sale of property which requires higher current payments on that property, provided such sale or refinancing is not made to evade provisions of this chapter;
2. Increases in taxes and/or fees related to the operation of the property except for state and federal personal and corporate income taxes;
3. Increases in insurance premiums for the same type of coverage previously held on the property, and for new coverage required by law or the lenders;
4. Unavoidable increases in maintenance and operating expenses, including increases in the costs of utilities provided to the property at the owner’s expense; and
5. Increased costs of substantial rehabilitation of capital improvements undertaken after June 6, 1977, and on or before the date of adoption of the ordinance codified in this chapter, or with the informed consent of all renters in the property when such rehabilitation or improvements are undertaken after the date of the adoption of the ordinance codified in this chapter, or when such rehabilitation or improvements are undertaken as required to bring the property into compliance with the implied warranty of habitability and applicable housing codes; provided, that such costs are apportioned over a good faith estimate of the life of such rehabilitation or improvements.
B. An owner wishing to increase rents to cover increased costs under this section must notify renters in writing at least thirty days in advance of such rent increase and provide a clear financial statement which explains and documents the increased costs which necessitate the rent increase. (Ord. 5109-NS § 12, 1978)