Rent Board Adopts 2022 Annual General Adjustment in the Amount of 5.2% (Effective 09/01/2022)
At their meeting on April 20, 2022, the Rent Board adopted Regulation 610, establishing the 2022 Annual General Adjustment (AGA) rent increase for Controlled Rental Units in the amount of 5.2%. Rent increases for the 2022 Annual General Adjustment may not take effect prior to September 1, 2022.
The 2022 AGA may only be applied to tenancies in effect prior to September 1, 2021.
In addition, while keeping in mind the above information, to apply the 2022 Annual General Adjustment rent increase of up to 5.2%, Landlords must comply with State law requirements and file a notice of rent increase with the Rent Board within ten (10) business days after service on the Tenant, in accordance with Regulation 603.
The Annual General Adjustment (AGA) is an annual rent increase for Controlled Rental Units permitted by the Richmond Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance. The Annual General Adjustment is calculated based on the percentage change in the Consumer Price Index of the Bay Area, which includes San Francisco, Oakland, and San Jose.
Are Landlords Allowed to “Bank” Annual General Adjustment Rent Increases?
Pursuant to Rent Board Regulation 602, in the event that a current year’s Annual General Adjustment exceeds five percent (5.0%), a Landlord maynot apply any deferred Annual General Adjustment increases until the next Annual General Adjustment increase less than five percent (5.0%) is effective.
Due to the fact that the 2022 Annual General Adjustment is above the 5% threshold, landlords will be unable to bank any deferred AGA increases until the AGA falls below 5%.
Rent Board Receive 2019-2020 and 2020-2021 Rent Program Annual Report
At their meeting on November 17, 2021, respectively, the Rent Board received a presentation of the 2019-20 and 2020-21 Rent Program Annual Report. Section 11.100.060(e)(6) of the Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance requires the Rent Board to report annually to the City Council on the status of rental housing covered by the Ordinance.
Rent Board Approves New Policy on Excess Rent Refunds
On June 19, 2019, the Rent Board rescinded Subsection (C) of Regulation 605, eliminating the requirement for Landlords to return excess rent via a cashier’s check with 10 days. In lieu of this requirement, and upon agreement of the Tenant, excess rent may be returned to the Tenant through the execution of a repayment agreement between the Tenant and Landlord, a reduction of Tenant’s rent until the amount is satisfied, the Landlord's partial payment of the amount owed combined with a reduction in rent, or other calculable forms of repayment. Under Section 11.100.100 of the Richmond Municipal Code, Tenants may not waive any provisions of the Rent Ordinance, which means that under any repayment plan, Tenants cannot waive or modify the amount of excess rent owed. The Tenant may only agree to modify the method and form of repayment. As is prudent practice, Landlords and Tenants are encouraged to document any agreement in writing and may request mediation through the Rent Program to facilitate an excess rent repayment agreement. Tenants who choose not to agree to a repayment plan, or whose Landlord fails to adhere to a previously agreed upon repayment plan, may file an Excess Rent petition with the Rent Program to compel the Landlord to refund any excess rent owed.