If you are planning to issue your tenant a rent increase, consider the following:
- The tenant is not currently under a one-year lease term.
- Rent increases must be consistent with current market rates.
- Owners must provide at least three comparable units within a one-mile radius of the assisted unit.
- Apartment complexes with more than four units must provide comparables within the same complex, where available.
- Housing Authorities may present a counteroffer to the proposed rent increase.
- Housing Authorities reserve the right to approve or deny a rent increase based on their own rent reasonableness research.
Tenant Notice Requirements (Timing of the Notice)
Ensure your rent increase notice complies with California law, including California Civil Code §827 (as clarified by AB 1110):
- 10% or less: 30-day written notice required
- More than 10%: 90-day written notice required
Owners who wish to avoid issuing separate notices to the tenant and HACR may choose to provide a single notice using a longer notice period, provided the tenant receives at least the minimum notice required by California law. This is optional and not required.
Rent Increase Amounts (Rent Caps)
(This section addresses how much rent may be increased, not how much notice is required.)
Tenant-Based Voucher (HCV) Units:
Rent increases are subject to AB 1482, including the annual rent cap of 5% plus the applicable Consumer Price Index (CPI), up to the statutory maximum, in addition to Housing Authority rent reasonableness requirements.
PBV, RAD PBV, LIHTC, and Other Deed-Restricted Units:
AB 1482 rent caps do not apply. Allowable rent increases are governed by applicable HUD regulations, HAP contract requirements, rent reasonableness standards, utility allowance adjustments, and/or program-specific rules, as applicable.
Approval of any rent increase remains subject to Housing Authority review and determination.
Once you have served your tenant with a Rent Increase notice, you will need to submit a copy to the Housing Authority. Please email a copy of the notice to: [email protected]
Please keep in mind that due to the high volume of rent increase requests received by our agency, processing times may take approximately 30-45 days to process the request.
If you are unsure how to properly serve a rent increase notice, or what you may or may not do under California law, you are encouraged to seek legal counsel. For general educational information, you may visit the following resources:
- Office of the Attorney General – Landlord-Tenant Issues
https://oag.ca.gov/consumers/general/landlord-tenant-issues - Fair Housing Council – Landlord-Tenant Issues
https://fairhousing.net/