(1) A landlord shall not increase the rent for a covered rental unit by more than the change in CPI, or three percent, whichever is lower. For purposes of this section, “change in CPI” means the percentage change in the Consumer Price Index over the previous 12-month period ending in March of each year.

(2) A landlord shall not impose more than one rent increase for a covered rental unit in any 12-month period, calculated from the date the rent increase takes effect, unless otherwise permitted pursuant to this chapter.

(3) The department shall announce the annual maximum allowable rent increase effective as of July 1st of the same year, in accordance with the department’s procedures and guidelines.

(4) A landlord may impose an annual rent increase for any covered rental unit, as allowed in this section, only after providing at least 30 days’ written notice to the tenant of the rent increase pursuant to California Civil Code Section 827.

(5) A landlord may impose an annual rent increase only upon registering the rental unit with the city and paying any required annual registration fees pursuant to CMC 5.13.100, and maintaining compliance with state and local laws and requirements.

(6) A landlord who does not impose a rent increase or imposes only a portion of the permitted rent increase in any 12-month period, as provided in this section, waives that annual rent increase or the remaining portion of that permitted annual rent increase for the remainder of the tenancy. A landlord shall not bank any waived and/or unused portions of permitted annual rent increases for use in future years.

(7) This chapter does not supersede a landlord’s right to set the initial rent for new tenancies under state law.

(8) A tenant of a covered rental unit subject to this chapter shall not enter into a sublease that results in a total rent for the rental unit that exceeds the allowable rent authorized by this section. Nothing in this chapter authorizes a tenant to sublet or assign the tenant’s interest where otherwise prohibited.

(9) A tenant may refuse to pay a rent increase which is in violation of this chapter. Such refusal to pay the unallowed increased amount in excess of permitted rent charges shall be an affirmative defense in any action brought to recover possession of a rental unit or to collect the rent increase owed. (Ord. 736 § 2 (Exh. A), 2023).