“Consultants presenting information at [a city-sponsored] workshop said that under state law, landlords are allowed to pass on 10 percent of a tenant’s rent in perpetuity to pay for the cost of a retrofit [which typically runs around $100,000], even if they are in a rent-controlled unit – of which the city has 180,000.
Conversely, if a rent-controlled building destroyed in an earthquake is replaced, its units are no longer subject to rent control.”
S.F. ‘soft-story’ buildings at risk in quake [SFGate]

8 thoughts on “JustQuotes: Let’s See, Ten Percent Versus No Rent Control…”
  1. I read the article and it didn’t contain any more information on the 10% increase. Does anybody have more information about the state law referenced?

  2. Interesting – a typical pass through has a sunset date which if yous miss can cause bokoo problems at the rent board. A permanent increase, if that is what this is, is not bad. Still, no way to truly recoup the cost of the siesmic retrofit unless something else was tossed in.
    Anyone care to write a tax break or a rebate of some kind into local law? =)

  3. It’s been my understanding that seismic improvements are treated like other capital improvements for pass-through purposes. I too would be interested to learn about any state law that signles them out for special treatment.
    NB: pass-thrus are generally subject to hardship exemption. I imagine that this applies to seismic improvements too.

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