Specified Capital Improvement Petitions

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Specified Capital Improvement Petitions provide an expedited way for landlords to recover costs associated with certain types of constructions costs, repairs and maintenance. Landlords may file a Specified Capital Improvement Petition to temporarily increase the rent for existing tenancies in rent stabilized CSFRA-covered units above the allowed Annual General Adjustment (AGA) for qualifying capital improvements. Specified Capital Improvement Petitions may be submitted for approval prior to installation of any improvements.

This cost-recovery tool helps:

Encourage landlords to proactively maintain their property
Promote safe and healthy housing of tenants
Reduce potential large scale displacement
Preserve affordable housing stock in the City

The maximum increase allowed under this petition is:

Capped at 5% of annual rent (not including the Annual General Adjustment)
Amortized over a specific time period for each type of improvement
Limited by the number of units on the property
- 1-5 units on property: Maximum of 90% of costs can be passed to tenants
- 6-20 units on property: Maximum of 75% of costs can be passed to tenants
- >20 units on property: Maximum of 50% of costs can be passed to tenants

General information on the types of improvements allowed for this petition, the petition process as well as necessary forms and workbooks are provided below. Interested landlords should contact division staff at mvrent@mountainview.gov or 650-903-6136 for help.

Improvement Qualifications and Categories

Under the CSFRA Regulations, Specified Capital Improvements are additions to or modifications of a physical feature of a Covered Rental Unit or of a building or property containing a Covered Rental Unit meeting the following qualifications and categories (CSFRA Regulations Ch. 6 Subsection C.10.).

Click here to view Qualifications for Specified Capital Improvements.

Be necessary to bring the property or Covered Rental Unit into compliance, or to maintain compliance, with applicable building or housing codes;
Primarily benefits the Tenant, rather than the Landlord;
Be permanently fixed in place or relatively immobile;
Have a useful life of at least five (5) years;
Appreciably prolong the useful life of the property; and
Not be excluded pursuant to Chapter 6, Subsection C.3., of the Regulations.
Additionally, Capital Improvements that meet the above qualifications and also improve the environmental sustainability of the property while reducing costs to tenants may be considered.

Click here to view Categories for Specified Capital Improvements.

New roof covering all or substantially all of a building or a structurally independent portion of a building;
Significant upgrade of the foundation of all or substantially all of a building or a structurally independent portion of a building, including seismic retrofits;
New or substantially new plumbing, electrical or heating, ventilation, and air conditioning (HVAC) system for all or substantially all of a building;
Exterior painting or replacement of sliding on all or substantially all of a building;
Repairs reasonably related to correcting and/or preventing the spread of defects which are noted as findings in a Wood Destroying Pest and Organisms Inspection Report;
Installation of water conservation devices intended to reduce the use of water- or energy-efficient devices, such as solar roof systems; and/or
Improvements or upgrades to a Rental Unit or the building/complex that meet or exceed disability/accessibility standards as required by law.

Click here to view types of improvements that do not qualify as capital improvements under the CSFRA.

Improvements that could have been avoided by the Landlord’s exercise of reasonable diligence in maintaining and making timely repairs;
Improvements that previously belonged to the Landlord or were inherited or borrowed by the Landlord;
Improvements done as ordinary or routine repair; and/or
Over-improvements not approved by the Tenant(s) in writing.

The Specified Capital Improvement Petition Process

Landlords complete and submit a petition form, workbook and documentation to the Rent Stabilization Division.
They also provide (serve) the completed petition form and workbook to tenants.
Rent Stabilization Division staff accept the petition and notify the parties; a hearing officer is assigned to the petition.
Tenants have 30 days to request a hearing and/or file a Tenant Hardship Petition by completing required forms and submitting them to division staff.
- If a hearing is requested by one or more affected Tenants:
  - A hearing is scheduled and held.
    - Tenants are allowed to fully participate in the hearing process, appear and speak at the hearing and appeal a petition decision.
    - At the hearing, both the landlord and tenants provide information about the property and answer any questions from the hearing officer.
  - The hearing officer issues a decision within 30 days after the hearing record closes.
    - The decision takes into consideration any information, including Tenant Hardship Petitions, provided by tenants as well as the information provided by the landlord and outlines the allowed monthly increase and applicable amortization period, or one-time payment (if any).
- If no hearing is requested:
  - The hearing officer reviews the petition and associated documentation and issues a Decision 30 days after the deadline to request a hearing.
  - The decision outlines the allowed monthly increase and applicable amortization period, or one-time payment (if any).
Both parties (landlords and tenants) can appeal the hearing decision to the Rental Housing Committee.

Petition Forms and Instructions

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