1. General Adjustment Workshop for Owners and Managers
Santa Monica Rent Control Agency
Evelyn Lansberry Information Analyst
Karen Evans Information Analyst
Neil Wessel Public Info Manager
July 5, 2016

2. Santa Monica Rent Control Board
Overview
The Maximum Lawful Rent
How to Calculate Annual Increases
Agency Contact Information
Individual Assistance
Please hold questions until that time.
Santa Monica Rent Control Board

3. The Maximum Lawful Rent
There are three amounts that
make up the maximum lawful
rent:
MAR (short for “Maximum Allowable Rent”)
pass-through of the registration fee
allowable surcharges from the property tax bill
MAR
+ Registration Fee
+ Surcharges
= Maximum Lawful Rent
MAR is a misnomer
Santa Monica Rent Control Board

4. Calculation of the MAR differs based on when the tenancy started.
Pre-1/1/99 Tenancies
The MAR is usually going to be based on the rent in effect on April 10, 1978, plus allowable increases approved by the Board since that time.
Since 1/1/99
The MAR is usually going to be based on the initial rent at the start of the current tenancy, plus allowable increases approved by the Board since that time.
Santa Monica Rent Control Board

5. Learning the Current MAR for Any Unit
Each year, the Agency sends property owners a MAR Report stating the MAR according to the Board’s records; or
Call, or come to the Rent Control office during business hours to request a MAR printout from our property database; or
Use the “Look up a Rent” link on the Rent Control website to find the MAR in the Rent Control database.
More about the printout on the next slide.
Santa Monica Rent Control Board

6. Sample Unit MAR History – Database Printout
MPP #
Bedrms: 2
Letter Date:
9/23/87
Cert MAR: 424
Verif:
Verify MAR:
MAR Mailing:
Run Date:
Effective
Date
Old
MAR
Incr/
Decr
New
Ref/Pet
Other
Reason for Change
Next Sched
Dropoff /
Incr
09/01/16
1807 23
1830
Gen’l Adjust / 1.3%
09/01/15
1800 7
Gen’l Adjust / 0.4%
09/01/14
1786 14
Gen’l Adjust / 0.8%
09/01/13
1768 18
Gen’l Adjust / 1.0%
09/01/12
1742 26
Gen’l Adjust / $26
09/01/11
1690 52
Gen’l Adjust/ $52
09/01/10
1657 33
Gen’l Adjust / 2.0%
09/01/09
1542 15
10/14/08
1442
100 D
HE 1st AdPart Comp Adj GA
09/01/08
1404 38
Gen’l Adjust / 2.7%
12/20/07
1654
-250
HE Dec Grant
09/01/07
1617 37
Gen’l Adjust / 2.3%
Santa Monica Rent Control Board

7. Santa Monica Rent Control Board
Sample MAR Report 2016
MAR Report 1 2 3
UNIT ID
Current MAR
As of 6/16/16
Market Rate
Established
9/1/16 GA
New MAR
as of 9/1/16
SITE ADDRESS: 1234 Sample St.
RENT CONTROL ID#
$1807
9/01/05
1.3%
$1830
$1956
2/05/07
$25
$1981
$1050
$1064 4
$1950
10/1/15
N/E 5
$989
$1002 6 # 7
Sec 8* 8
$2190
3/01/16 9
$963
$976 10
$1995
8/01/2007
$2020
Column 2 provides information whether you may increase the rent for the unit and how:
By 0.8%
By $14
Section 8
N/E – Not eligible yet
# - Registration form pending
Santa Monica Rent Control Board

8. The Annual General Adjustment
Each year the Board announces an increase to the MAR, known as the General Adjustment (or GA). The GA is primarily based on 75% of the percentage change in the Consumer Price Index (CPI) for the Los Angeles area for the 12 months ending in March. The annual GA increases the MAR for most controlled units, therefore increasing the maximum lawful rent for the units. The rest of this presentation will focus on increasing a tenant’s rent due to the annual GA increase to the MAR.
Santa Monica Rent Control Board

9. The 2016 General Adjustment
The CPI increase in the Los Angeles area for the period ended March 2016 was 1.7%, and 75% of that is 1.275% or 1.3% after rounding.
After holding a public hearing, the Board chose to set a maximum adjustment of $25.00.
The General Adjustment for 2016 is 1.3%, with a maximum of $25.00.
The 85th percentile MAR of all controlled units = 2,209
The 85th percentile of units with base rents established before 1/1/99 = 1,281
$2,209+$1,281 = $3,490/2 = $1,745 x .8% = $14.
Santa Monica Rent Control Board

10. Requirements for Passing through Rent Increases to the Tenant
A rent may be increased based on the new MAR as of September 1st of each year only if:
The tenancy started before September 1 of the previous year.
All Rent Control registration fees and penalties for a property have been paid.
The subject unit is properly registered.
There are no uncorrected citations or notices of violation of health, safety, or housing laws for the property.
The owner is in compliance with the Rent Control Law.
The owner gives proper written notice to the tenant.
Santa Monica Rent Control Board

11. Using the Rent Notice Form Provided by the Rent Control Agency
This is a sample form. You can use your own, but include language.
Line 1-3 refer to the MAR.
State law requires 30/60 day notice. May deliver anytime later.
Be sure they understand they would have to fill in the property tax blanks
Send this to the tenant, not to Rent Control.
Santa Monica Rent Control Board

12. Enter the current MAR on line 1.
The old MAR is not what you are collecting now.
Subtract the registration fee and surcharges (if necessary)
Santa Monica Rent Control Board

13. Enter the GA increase on line 2.
Point out that the fee is now $13
Be sure they understand they would have to fill in the property tax blanks (sample on next page)
Santa Monica Rent Control Board

14. Santa Monica Rent Control Board
On line 3, add lines 1 and 2 and round the sum to the nearest whole dollar amount.
50 cents and up.
Santa Monica Rent Control Board

15. Santa Monica Rent Control Board
Sample MAR Report 2016
MAR Report 1 2 3
UNIT ID
Current MAR
As of 6/16/16
Market Rate
Established
9/1/16 GA
New MAR
as of 9/1/16
SITE ADDRESS: 1234 Sample St.
RENT CONTROL ID#
$1807
9/01/05
1.3%
$1830
$1956
2/05/07
$25
$1981
$1050
$1064 4
$1950
10/1/15
N/E 5
$989
$1002 6 # 7
Sec 8* 8
$2190
3/01/16 9
$963
$976 10
$1995
8/01/2007
$2020
Column 2 provides information whether you may increase the rent for the unit and how:
By 0.8%
By $14
Section 8
N/E – Not eligible yet
# - Registration form pending
Santa Monica Rent Control Board

16. Santa Monica Rent Control Board
Follow the Numbers
Columns 1, 2 & 3 on the MAR report correlate to Lines 1, 2 & 3 on the Board form for noticing rent increases.
Santa Monica Rent Control Board

17. Registration Fee Pass-through
The Rent Control Board charges a Registration Fee for each rent-controlled unit to the owners of rent-controlled properties.
MAR
+ Registration Fee
+ Surcharges
= Maximum Lawful Rent
Owners may pass a portion of the registration fee through to each tenant. For the 12 months starting September 1, 2016, the amount that may be passed through is $7.29 per month, as long as all fees are paid no later than August 1, 2016.
Brief explanation, then to sample
Santa Monica Rent Control Board

18. Registration Fee Waivers
A waiver of the registration fee can be authorized by the Agency for units occupied by very-low income tenants who are ALSO: senior citizens, disabled, or are participating in a state or federal rent subsidy program (e.g., Section 8).
A waiver of the registration fee can be also be authorized by the Agency for units occupied by owners of the property (at least a 25% ownership interest) who occupy the unit as their principal place of residence.
No registration fee is charged for units for which a fee waiver was authorized; therefore, no registration fee pass-through may be charged to a tenant of such a unit.
Explain that rent could be lower due to fee waivers
No waiver for units currently not rented
Santa Monica Rent Control Board

19. Santa Monica Rent Control Board
If a registration fee was paid for the unit, enter the registration fee pass-through on line 4.
Explain that rent could be lower due to fee waivers (not have to pay $13 for those units)
Santa Monica Rent Control Board

20. Calculate Allowable Surcharges
MAR
+ Registration Fee
+ Surcharges
= Maximum Lawful Rent
Surcharges are based on charges that are included in the property tax bill.
A copy of the tax bill must be attached to the increase notice to the tenant in order to pass through these charges: Community College Bond, Unified Schools Bond, Stormwater Management User Fee and Clean Beaches & Ocean Parcel Tax.
Brief explanation, then to sample
Santa Monica Rent Control Board

21. Sample Property Tax Bill
Show this while talking about surcharges and then go back to other slide
LA County Tax Collector: (213)
Community College Bond, Unified Schools Bond, Stormwater Management User Fee, Clean Beaches & Ocean Parcel Tax, and School District Parcel Tax are abbreviated on the tax bill. The sample above lists them as they appear on the bill.
Santa Monica Rent Control Board

22. School District Special Taxes (Measure R)
- Senior Owner Exemption
Exemptions from this tax may be granted to property owners who meet the following qualifications:
Must be 65 years old or older by June 30th of the year in which they apply; and
Must own and occupy their property as their primary residence.
Applications are available by contacting SMMUSD and asking to be put on the exemption application mailing list.
Call SMMUSD at , ext
Explain that rent could be lower due to fee waivers (not have to pay $13 for those units)
Santa Monica Rent Control Board

23. Clean Beaches and Ocean Parcel Tax
Exemption available for low-income tenants who qualify and apply. To apply, call Rent Control Agency.
Exemption available for low-income owners who qualify and apply. To apply, call Neal Shapiro at Santa Monica’s Office of Sustainability and the Environment. (310)
For this tax only, if the tax bill has been adjusted because a tenant has an exemption, when calculating the surcharge, divide the amount on the tax bill by the number of units that have NOT received an exemption, and do not pass this tax through the tenant with the exemption.
Santa Monica Rent Control Board

24. Santa Monica Rent Control Board
Follow the Numbers
Lines on the sample tax bill show where that surcharge goes on the notice.
Santa Monica Rent Control Board

25. Calculating the Amount of the Surcharges
Amount from the annual property tax bill
÷ TOTAL number of units on property
÷ 12 months
= per unit monthly surcharge
For example, if the Community College Bond charge on a property’s tax bill was $1,258.80, and the property has 10 units:
The actual surcharge for each fiscal year beginning July 1, 1996 may be collected in monthly installments commencing the following January 1, or any month within the same calendar year, and continuing for the next twelve months thereafter.
$1, ÷ 10 (units) ÷ 12 (months) = $10.49
Santa Monica Rent Control Board

26. Enter amounts from the tax bill,
The law does not call for any rounding.
Santa Monica Rent Control Board

27. . . . enter the number of units on the property,
The law does not call for any rounding.
Santa Monica Rent Control Board

28. . . . and calculate the surcharges. Put the results on lines
5a through 5e,
The law does not call for any rounding.
Santa Monica Rent Control Board

29. . . . and put the total amount of the surcharges on line 5.
The law does not call for any rounding.
Santa Monica Rent Control Board

30. Santa Monica Rent Control Board
Add lines 3, 4 and 5, and put the total on line 6. This is the new maximum lawful rent.
Send this to the tenant, not to Rent Control.
Santa Monica Rent Control Board

31. Santa Monica Rent Control Board
Rent Control Office
Office Address
Santa Monica City Hall
1685 Main Street, Room 202
Santa Monica, CA
Phone
(310)
Website
Finish
Santa Monica Rent Control Board

32. Santa Monica Rent Control Board
Information Analysts
Information Analysts are available to answer questions by phone, walk-in or .
No appointment is necessary.
Hours available:
Monday - Thursday
Walk-in: 8:00 am - 4:30 pm
By phone: 7:30 am - 5:30 pm
Fridays (closed every other Friday)
By phone: 8:00 am - 5:00 pm.
Santa Monica Rent Control Board

33. Download Forms from Website
Go over services
Just go to the homepage and look for “Notice of Change in Terms of Tenancy” in the blue box entitled “Quicklinks” on the right side of the screen.
Santa Monica Rent Control Board

34. Santa Monica Rent Control Board
Individual Assistance
Anyone needing further assistance may get help now in the order you are called.
Santa Monica Rent Control Board

35. General Adjustment Workshop for Owners and Managers
Santa Monica Rent Control Agency
Evelyn Lansberry Information Analyst
Karen Evans Information Analyst
Neil Wessel Public Info Manager
July 5, 2016