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(1) Tenant Application for Adjustment. A tenant of a covered rental unit may file a petition for adjustment (“application for adjustment”) with the department for its determination, if the tenant contends, in good faith, that they should receive an adjustment to their monthly obligation(s) because of a landlord’s potential violation(s) of this chapter. A tenant must file an application for adjustment within 180 days from the date the tenant knew, or reasonably should have known, of the landlord’s potential violation(s), in accordance with the provisions of this section.

(a) Unlawful Rent and/or Fees or Charges. A tenant may file an application for adjustment with the department due to a landlord’s demand for rent, fees, or other charges that may be in excess of that permitted for a covered rental unit under this chapter.

(b) Failure to Maintain Habitable Premises. A tenant may file an application for adjustment with the department to request a refund of, or decrease in, rent proportional to a landlord’s potential failure to maintain the covered rental unit as a habitable premises in accordance with applicable laws or the rental agreement.

(i) A landlord shall not be liable to a tenant for failure to maintain habitable premises if the tenant caused the condition that is the subject of the application.

(ii) Prior to filing an application for adjustment for failure to maintain habitable premises, a tenant shall file a complaint with the proper enforcement agency and provide such proof of complaint filing to the department.

(c) Decrease in Housing Services. A tenant may file an application for adjustment with the department for a service reduction in housing services, without a corresponding reduction in rent, which may be considered an increase in excess of permitted rent.

(2) Prior to filing an application for adjustment with the department, a tenant shall:

(a) Provide written notice to landlord identifying the potential violation(s) of excess rent, fees or charges, failure to maintain habitable premises and/or decrease in housing services; and

(b) Provide a reasonable opportunity for the landlord to correct the issues.

(3) Review and Determination of Application for Adjustment. The department shall consider the following factors, as applicable, as well as any other relevant factors, in making its determination and no one factor shall be determinative:

(a) Increases or decreases in rent or housing services since the effective date of this chapter.

(b) The pattern of recent rent or housing service increases or decreases.

(c) Whether the landlord has received payment in excess of the maximum allowable rent, fees, or charges permitted by this chapter or has otherwise failed to comply with this chapter.

(d) When and how the service reduction was first identified by the tenant and when and how the landlord was notified of the alleged service reduction, orally, or in writing, and landlord’s response to such notice and whether housing services were reinstated or restored by the landlord, and if so, when and how.

(e) Whether any habitability violations stated by the tenant in the application were improved or corrected, and if so, when and how.

(f) The status of the habitability issues as of the date the application is signed.

(4) Notice Upon Filing Application for Adjustment. Within five calendar days after submission of an application for adjustment with the department, the tenant shall provide written notice of said application to the landlord via personal service or certified mail return receipt requested.

(5) Submittal to Department of Application for Adjustment. Upon receipt of an application, the department shall review and evaluate whether there should be an adjustment to tenant’s monthly obligations in accordance with this section and the department’s procedures and guidelines.

(a) The application shall be on a form approved by the department, signed under penalty of perjury, and must be accompanied by an application fee, if any, and must include the following:

(i) The specific adjustment requested and the basis for such adjustment;

(ii) Copies of any books, records, papers, or other financial information relevant to the review of the application; and

(iii) Other documentation reasonably required by the department relevant to the application.

(b) Application Fees. The department may set a reasonable application fee to be paid by the applicant at the time of the filing based on the administrative expenses incurred in reviewing and processing the application.

(c) The department shall have the authority to deem an application complete.

(6) Right of Assistance. All parties to an application for adjustment may seek assistance from attorneys or any other person designated by said parties.

(7) Consolidation. Applications for adjustment for tenants who live in the same building or rental property may be consolidated for determination at the election of the department. (Ord. 736 § 2 (Exh. A), 2023).