17.23.315 - Limits on all fees and pass through charges.
A. Limitation on Pass Through Charges. No pass through of charges to Tenants is authorized except as expressly provided in this Chapter. Without altering the generality of the foregoing sentence, no charges for utility services (such as electricity, natural gas, telephone, water, waste water, sewer and refuse or waste management services) may be passed through to Tenants by Landlord. No charges may be passed through that are assigned to Tenants by virtue of ratio utility billing or similar unmetered allocation arrangements. This section is not intended to prohibit the government entity or nonprofit administering the voucher from imposing conditions based on regulations with respect to utility payments on Rental Voucher Units, or to prohibit submetered water, gas or electricity.
1. Existing Agreements End; New Agreements Prohibited.
i. Existing written rental agreement, amendment or addenda provisions for payment or pass through of utility service or similar charges or for ratio utility billing to the Tenant ("Passthrough Agreements") that were executed by the Landlord and the current Tenant prior to January 1, 2018 are void on the date that the Petition Examiner's or Hearing Officer's decision is issued on the petition described in subsection A.2 or A.3, or void after October 31, 2018 if the Landlord does not submit a complete petition on or before October 31, 2018. A renewal by the same parties on the same terms of a Passthrough Agreement initially executed prior January 1, 2018 shall be subject to this subsection A.1.i, not subsection A.1.ii.
ii. Passthrough Agreements entered into after January 1, 2018 are void.
iii. Verbal rental agreement, amendment or addenda provisions for payment or pass through of utility service or similar charges or for ratio utility billing to the Tenant are void.
iv. Notwithstanding subsection A.1.ii, Passthrough Agreements executed prior to May 1, 2018 with a new Tenant shall be shall be subject to subsection A.1.i, not subsection A.1.ii, if the Landlord can prove that he/she has, prior to July 1, 2017 required utility pass through agreements with the same terms for all Tenants in the building.
2. Landlord Petition for One-time Offset Increase. If a Landlord has a written Passthrough Agreement for water, sewer and/or trash executed by the existing Tenant prior to January 1, 2018, the Landlord may file a petition with the City during the period from July 5 to October 31, 2018 for a one-time increase in rent ("Offset Increase") which increase, if awarded, shall not be subject to the one (1) increase in any twelve (12) month period limitation in Section 17.23.310. The petition process shall be in accordance with the Regulations.
3. Landlord Petition for One-time Offset Increase for Unmetered Gas and Electricity. If the units in the Landlord's building are not metered for gas and electricity due to the age or type of the building, the Landlord has complied with the requirements of Civil Code Section 1940.9 at the commencement of tenancy and Landlord has a written Passthrough Agreement for gas and/or electricity executed by the existing Tenant prior to January 1, 2018, the Landlord may file a petition with the City during the period from July 5 to October 31, 2018 for a one-time increase in rent for gas and electricity ("Gas/Electricity Offset Increase") which increase, if awarded, shall not be subject to the one (1) increase in any twelve (12) month period limitation in Section 17.23.310. The petition process shall be in accordance with the Regulations.
4. If the pass through or Passthrough Agreement has been the subject of a Hearing Officer Decision or Voluntary Agreement that disallowed the pass through, no Offset Increase is allowed. If the unit is a Rental Voucher Unit no Offset Increase is allowed.
5. The Offset Increase amount will be the lesser of: (i) the average of the monthly charges paid by the Tenant in 2017 under the Passthrough Agreement for water, sewer and/or trash, or (ii) $86 for a studio, $91 for a one-bedroom, $102 for a two-bedroom and $149 for a three bedroom.
6. The Gas/Electricity Offset Increase amount will be the lesser of: (i) the average of the monthly charges paid by the Tenant in 2017 under the Passthrough Agreement for gas and/or electricity, or (ii) $36 for a studio, $58 for a one-bedroom, $70 for a two-bedroom and $84 for a three bedroom.
7. The Petition for One-Time Offset Increase can be challenged by the Tenant as provided in the Regulations.
8. For a petition brought under subsection A.1.iv, the offset amount, the references in subsection A.5 and A.6 to the average of the monthly charges paid by the Tenant shall refer to 2018, prior to the date of petition filing.
B. Limitation on Fees. The following fees may not be charged to Tenants except as provided:
1. Excess Replacement Fees. No Landlord shall charge a Tenant a replacement fee for a key or security card that exceeds the actual replacement cost plus ten dollars ($10.00) unless approved by Petition or the Regulations.
2. Excess Bounced Check Service Fees. No Landlord shall charge a Tenant a service charge for a dishonored ("bounced") check that exceeds the amount allowed under California Civil Code Section 1719(a)(1), as amended. Landlord need not provide Tenant with a third party invoice for this service charge.
3. Late Payment Fees. No Landlord shall charge a Tenant a fee for late payment of Rent exceeding a total of five percent (5%) of the monthly Rent for each payment of Rent that is three (3) or more days late.
4. Application Screening Fees. No Landlord shall charge a Tenant an application screening fee in excess of the amount allowed under California Civil Code Section 1950.6(b), as amended.
C. Separate Line-Item Required. No Landlord may pass through any charge to any Tenant allowed under this Part unless the charge is clearly listed on the rental agreement and the Rent invoice (if any) and is accompanied by a true and correct copy of the invoice or bill paid by the Landlord for such charge.
D. Tenant Petitions Authorized. In the event a Tenant disputes the pass through of a charge or the calculation of the Tenant's share of the charge, the Tenant may file a Petition for a determination as to whether such charge may be passed through pursuant to this Section and whether the calculation of the Tenant's share comports with this Section and any Regulations governing such pass through. Any of the following reasons provide grounds for such a Petition:
1. There exists a dispute as to the genuineness of the bill or the amount of the charge.
2. The pass through of the charge is not authorized under this Chapter.
3. There exists a dispute as to whether the Tenant had the right to use and occupy the Rental Unit during the billing period or any portion of the billing period.
4. Mathematical errors in the relevant calculations.
5. Copies of the Landlord's invoice or bill were not provided as required.
E. Security Deposit. Except as provided in Section 17.23.320.C, a Security Deposit, once established, cannot be raised for the duration of the tenancy. For purposes of this Section only, where several Tenants occupy one (1) Rental Unit, the Tenancy shall be deemed to continue so long as any one (1) of the Tenants who occupied the Rental Unit when the deposit was set continues to occupy the Rental Unit.
(Ords. 30032, 30090, 30110.)
