The landlord shall be entitled to apply to the Board for a hardship
surcharge if the net operating income for the building or complex is less
than 40% of the gross rents and revenues for the building.
" Net operating income" shall be defined as gross rents and revenues,
less expenses.
The landlord shall file the application on the form specified by the
Rent Leveling Board. The landlord shall submit the following information for
the two-year period immediately preceding the application:
A. Copies of the applicable parts of the landlord's
tax return.
B. Financial statements (balance sheet, profit and loss
and cash flow).
C. An analysis of gross income.
D. Copies of the landlord's real estate tax bill, with
proof of payment.
E. Copies of state and local tax bills, with proof of payment.
F. Documentation of management fees and identification of
the recipients.
G. Itemization of capital improvements.
H. A description of all transactions with related persons;
"related persons" shall be understood in the context ordinarily used in the
accounting and legal professions.
I. Proof of expenditures for expense items, i.e., canceled
checks and receipts marked "paid."
J. A detailed analysis of payroll costs.
K. A monthly analysis of rents and other income.
M. A detailed listing of unpaid bills, uncollected receivables
and claims.
N. An analysis of accrued expenses.
O. A description of accounting practices and policies.
This statement must be certified by a certified public accountant as
to its accuracy and completeness.
[Amended 3-6-1990 by Ord. No. 1103]
The Secretary/Investigator of the Board shall reject and return all applications which do not meet the minimum requirements of §
235-57 of this article.
The Board shall hold a hearing on the landlord's application no
sooner than 30 days nor later than 120 days after the receiving and acceptance
of the application.
The Board, after hearing all witnesses and reviewing all evidence, shall
determine if:
A. The expenses reported for a particular year are applicable
to that year. The Board shall amortize significant one-time expenses over
the period during which the benefit of the expenses will be realized or of
the useful life for capital assets.
B. All items of income were reported.
C. Operating expenses, as defined in §
235-56 of this article, are greater than 60% of gross rents and other income.
The landlord shall apportion the hardship surcharge among all the tenants
in the following manner:
A. By the number of rooms or the space in proportion to
the total rentable area in the building; or
B. By the number of housing spaces within the dwelling.
If a hardship surcharge is granted, the landlord shall notify the tenant
of the following information 30 days prior to the implementation of the surcharge:
A. The total amount of the surcharge.
B. The method of computation to determine the surcharge.
C. The number of rooms in the dwelling.
D. The number of rooms occupied by the tenant.
E. The allowable surcharge for each tenant, yearly and monthly.
F. The effective and expiration date of the surcharge.
The decision of the Board shall be by resolution, with certified copies
mailed to the landlord and to the tenants who participated in the hearing.
The resolution shall include the following:
A. Whether the hardship application was granted.
B. If the application was granted, the calculation and amount
of the surcharge, with the appropriate amount per tenant charge.
C. A statement as to the beginning and ending dates of the
surcharge.
D. A description of the appeal procedure to the Mayor and
Council.
Each landlord shall be limited to one application and approval of an
increase in rent due to hardship during any one calendar year. No hardship
surcharge shall be granted while another is in effect.
All hardship surcharges shall expire after 30 months. After that time,
the landlord, if he or she wishes to continue the surcharge, shall submit
a new application, which application shall be reviewed at a hearing of the
Board.
Hardship surcharges shall not be included in the base rent for the calculation
of annual rent increases.