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Rent Control Terms & Definitions

Amenities Petitions
Costa-Hawkins Rental Housing Act Registration Fee
Excess Rent Complaint Registration Fee Waivers
Exemptions Rent Decrease Petition
General Adjustment Rent Increase Petition
Housing Services Surcharges
Maximum Allowable Rent (MAR) TORCA
Participating Tenant Vacancy Decontrol


Amenities:

Base amenities are generally those housing services which were in effect either when the tenancy began (for tenants who moved in after January 1, 1999) or on April 10, 1978 (for tenants who moved in before January 1, 1999.) 

Housing services include, but are not limited to, parking, the right to have a pet or a specified number of occupants (roommates). Amenities can be specific to the apartment, and may include things like carpets, drapes, screens, appliances and storage. They also include building-wide services such as elevator service, saunas, swimming pools and laundry facilities. 

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Costa-Hawkins Rental Housing Act:

See Vacancy Decontrol.

Excess Rent Complaint:

If a tenant has paid more than the maximum lawful rent (or other forms of excess rent as defined in Chapter 8 of the Rent Control regulations), he or she may file a complaint with the Rent Control Board to recover the amounts deemed to be overcharged. Tenants also have the right to file a civil lawsuit with the court system. Information Coordinators are available to explain this process.

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Exemptions:

Certain properties may be exempt from the Rent Control Law. Examples include hotels, medical care facilities, three-unit or less owner-occupied dwellings. Exemptions are not automatic. Property owners interested in an exemption should contact the Rent Control Board for more information and an application.

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General Adjustment:

Each year the Rent Control Board approves a general rent increase for most rental units in the City. This amount is intended to cover annual increases in the average landlord’s operating expenses. Public hearings regarding the amount of increase are held in May and June. When the Board makes its final decision, all landlords and tenants are notified of the allowable increase. Rent increases are implemented in September of each year for eligible units.

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Housing Services:

See Amenities.

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Maximum Allowable Rent (MAR):

The MAR is the maximum rent that a landlord may charge for a controlled rental unit. Certain surcharges may also be added to the maximum allowable rent. Rent Control staff can provide the current MAR in the Board’s records for any controlled rental unit. Rent levels are also available online.

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Participating Tenant:

Tenants who lived in their units at the time an application was filed to convert the property from apartments to condominiums under the TORCA law, are considered participating tenants.  Participating tenants who did not purchase their units and still reside in their original unit have all the protections of the Rent Control Law, plus some additional protections.  Specifically, participating tenants may NOT be evicted for owner-occupancy.

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Petitions:

The Rent Control Law allows landlords and tenants to petition for downward or upward adjustments in the Maximum Allowable Rent. Petitions must be filed on a form supplied by the Rent Control Board. For more information, see Forms & Petitions.

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Registration Fee:

The Board charges an annual fee to property owners of rent-controlled units. Registration fees finance the operation of the Santa Monica Rent Control Board. Owners who pay the fee by August 1st can be reimbursed by their tenants on a prorated monthly basis. This amount is added as a surcharge to the rent. 

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Registration Fee Waivers:

The Board will waive the registration fee for owner-occupied units, some single family homes and condominiums, and units occupied by tenants subsidized by a state or federal program (such as Section 8).

In addition, the Board will waive the registration fee for units occupied by very low-income seniors (62 years or older) or very low-income disabled tenants. Exceptions are listed in Regulation 11200. The income limits change every year.

Interested residents must complete an application and provide supporting documentation.

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Rent Decrease Petition:

Tenants whose rental units need repairs or maintenance, or tenants whose housing services or amenities have been reduced, may petition to have their monthly rent decreased. The purpose of the rent decrease is to motivate owners to maintain their property and to make necessary repairs. A rent decrease stays in effect until the repairs have been made or amenities restored.

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Rent Increase Petition:

Owners may petition for rent increases above the yearly general adjustment due to completed or planned capital improvements or increased operating expenses not covered by the general adjustments. Owners must demonstrate they are not receiving a fair return to obtain an individual rent increase.

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Surcharges:

Property owners may include additional amounts in a tenant's monthly rent in addition to the Maximum Allowable Rent (MAR) and the registration fees. The amounts paid by tenants vary from property to property. The total amount of surcharges will usually range between $13 and $50 per month, although surcharges for condominiums may be significantly higher.

Current surcharges that may be added to the legal rent are: (1) School/Community College Bonds, (2) Stormwater Management User Fee, (3) Clean Beaches & Ocean Parcel Tax, and (4) School District Special Tax.

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TORCA:

The Tenant Ownership Rights Charter Amendment allowed for the conversion of apartment buildings into condominiums as long as a sufficient number of tenants approved the conversion and agreed to purchase their units.

This program was voted into effect in 1984 by Santa Monica voters and expired in 1996.

Under this agreement landlords had to offer the units for sale first to the tenants already living in the units. Tenants declining to purchase their unit were allowed to remain in their units. See Participating Tenant.

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Vacancy Decontrol:

In 1995, the California state legislature passed a law removing local control on the rent level that could be charged at the start of a new tenancy. The Costa-Hawkins Rental Housing Act allows property owners to set the initial rent at market rates. Future rent increases, however, remain limited to whatever is authorized by local rent control agencies. Costa-Hawkins became effective January 1, 1999.

There are several exceptions to the vacancy decontrol law, such as rent levels established when a unit that was withdrawn under the Ellis Act is returned to the rental market within five years. In addition, certain types of properties, such as condominiums, are eligible for decontrol at different times beyond what is stated here. For more information, please contact the Rent Control Board.

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