Consistent with the rent increase exception process for staff determination, the
applicants completed and submitted a Rent Roll and a Maintenance of Net Operating
Income (“MNOI”) worksheet. The Rent Roll was used for two tenant mailings.
02/05/26: Notice of Application Postcard
A mailing completed by the City’s print vendor informing tenants that their landlord
requested an exception to the rent increase cap.
03/03/26: Staff Determination Letter
A mailing completed by City staff informing tenants that their landlord was granted an
exception to the rent increase cap and advising tenants of their appeal rights.
The current owners acquired the building in 2022, but the Maintenance of Net
Operating Income worksheet defaults to 2019 as the Base Year. Given the limited
financial history available, the owners claimed a Base Year Rent Adjustment.
The applicants described the services provided to each rental unit.
The landlord pays for sewer, lawn maintenance, snow removal (building, sidewalks,
alley), repairs, pest control, Reduced Pressure Zone valve testing and related
plumbing.
The landlord additionally pays for electricity to the common areas, and for gas, water
and garbage, and passes the costs through to the tenants. (The applicants note that
they would like to pass through all costs to the renters.)
The tenants pay for electricity in their units.
The application included a completed:
Capital Improvement and Expense Worksheet for roof repair, HVAC upgrade, and
interior and exterior lighting. The applicants provided a spreadsheet version of the
financial information with additional details about expenses and capital improvements.
Owner Performed Labor worksheet for replacing power outlets, painting and cleaning
carpeting. Landlord-performed labor is compensated at reasonable hourly rates, if
documentation is provided showing the date, duration and the nature of the labor
performed. The maximum allowed under this provision is 5 percent of gross income
unless the landlord demonstrates that greater services were performed for the benefit
of the residents.
Staff reviewed the materials submitted by the applicants and worked with them to
finalize the application, then issued determination letters to the:
Applicants on February 27, 2026, granting approval of an exception to the rent increase
cap. The approved exceptions were:
Apartment A: 17.97%
Apartment B: 17.97%
Apartment C: 19.20%
Apartment D: 17.97%
Although Unit C was not included in the online intake form or the Rent Roll,
property-wide financials were provided. Therefore, a property-wide determination was
issued. Unit C was renting for a flat rate of $1,690 / month at the time of application.