Investor · Tiburon, CA · Member since 2012 · 16 posts · 6 votes
One of my Section 8 tenants in Oakland is no longer receiving the Section 8 subsidy. She was leased the unit with a Section 8 voucher. The rent is significantly under market (30% or more) and I would like to increase the rent 10 to 20%. Can I notify Section 8 and increase the rent beyond the City's Rent Control Ordinance because the unit was leased as a Section 8 unit even though she no longer receives a rent subsidy from Section?
The rent control exemption for Section 8 applies to the circumstances of the tenant, not permanently to the building or to the individual unit. So if the tenant is not under Section 8 (is this true?) when you issue the notice, I do not believe the unit is exempt from rent control restrictions, unless under a different exemption. So is she under the Section 8 program still, but just not receiving a subsidy? Or is she no longer under Section 8?
What type of unit is it? Single family or condo? If so, you are most likely exempt anyway. Was the unit constructed Jan 1, 1983 or after? If so, you are most likely exempt anyway. Is it a 2 or more unit building constructed before Jan 1, 1983? Then you are most likely subject to rent control, and cannot just increase the rent by 10-20%, unless you:
a) Use capital pass-throughs, 70%, over number of years, 10% annual cap (see regs), or b) Banked rents, also subject to restrictions
If you do not meet an exemption and fall under rent control (rent adjustment program) for Oakland, you will not be able to increase the rent more than 10% in one year. It is a hard cap. 30% in 5 years. Also, note that the State of CA requires at least 60-day notice for rent increases of 10% or more. Separately, non-payment of the full amount of the existing rent would be just cause for eviction.
I am not a lawyer and have no professional or other certifications, so I don't know nothin' about nothin'. ;) But here's where all the info is:
Also, the East Bay Rental Housing Association is a great resource, and you should be a member if you are asking this question. @Arlen Chou can probably attest to that!