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Utilities Charges and RUBS

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Allowed Utility Billing for Fully Covered CSFRA Units

Starting Tuesday, September 3, 2024, landlords of fully covered units can submit a One-Time Utility Adjustment Petition to the Rent Stabilization Division. 

Find petition materials, including forms and workbooks, by clicking here.

On December 18, 2023, the Rental Housing Committee (RHC) adopted regulations clarifying that utilities are part of rent for units fully covered by the Community Stabilization and Fair Rent Act (CSFRA). The CSFRA provides rent stabilization and eviction protections for most apartment buildings in Mountain View with 3 or more units built before February 1, 1995. These units are considered fully covered.

Utilities for fully covered units are subject to the rent increase limitations of the CSFRA. The use of Ratio Utility Billing Systems (RUBS), which is used to distribute property-wide utility costs among tenants, and similar utility billing systems must be transitioned out through a landlord petition process for existing tenancies.

Please see CSFRA Regulations Chapter 13 for the full text. Find additional resources, including forms and workbooks, below or by clicking here.

For New Tenancies starting March 1, 2024:

  • RUBS is not allowed.
  • Total rent must include utilities.
  • Rental Agreement must state the total rent amount and specify the types of utilities and housing service fees included (e.g., water, garbage, sewer, parking, pet fee).
  • Utility charges paid directly by tenant to utility service provider (such as PG&E) or
    sub-metered utilities are exempt.

The landlord is required to provide one total monthly rent amount (one number that encompasses all fixed utility charges) in the rental agreement. The rental agreement must state which housing services and utilities are included in the rent amount (e.g., they must mention that rent includes the following utilities: water, garbage, trash, electricity, etc.).  

For Existing Tenancies

RUBS can continue to be charged for existing tenancies until the Utility Adjustment is incorporated into rent.

  • RUBS may continue until a Utility Adjustment Petition is filed with the City and approved in accordance with CSFRA Regulations Chapter 13.
  • Utility charges for vacant or newly rented units may not be allocated to existing rental units through RUBS or similar systems.
  • Utility charges paid directly by tenant to utility service provider (such as PG&E) or sub-metered utilities are exempt.

The One-Time Utility Adjustment Petition process allows landlords to incorporate utilities currently charged separately from rent or through RUBS into a fixed amount included in a tenant’s rent. All landlords need to complete and file a petition outlined as follows to qualify for and apply the adjustment. Even if a landlord believes the utility billing method used at their property is exempt from these changes, they need to submit a form for verification and allow for tenant response.

How does the Utility Adjustment Petition process work?

  1. Landlords complete and submit a property-wide petition form, workbook with information for each unit and documentation to the Rent Stabilization Division before the deadline stated below.
    • Rent Stabilization Division staff review your petition to make sure it is complete. If information or documentation appears to be missing, Division staff notify you to give you a chance to supplement or revise your petition. Division staff then notify you when the petition is ready to be served on your tenants.
  2. Landlords serve the completed petition form and workbook without the evidentiary documentation on affected tenants.
  3. After serving the petition on affected tenants, landlords file a copy of the petition, workbook, evidentiary documentation and proof of service forms for each tenant with the Rent Stabilization Division. Tenants can request a copy of the redacted evidentiary documentation from staff.
  4. Once filed with the Division, staff sends a Notice of Filing to tenants with a Tenant Response Form.
    • Tenants have thirty (30) days from the date on the Notice of Filing to object to the calculations in the petition by filing a Tenant Response Form with the Division.
  5. Staff reviews the petition, and any responses received, verifies calculations and issues a Notice of Final Determination stating the amount of the one-time utility adjustment for each affected unit. The Final Determination cannot be appealed.
  6. If the petition calculations are confirmed, landlords need to determine if the utility adjustment is a downward adjustment or an upward adjustment by using a form provided by Division staff that averages the utilities paid by each unit between July 1, 2023 and June 30, 2024 (plus 3.2%) and compares the average against the amount of the one-time utility adjustment in the Notice of Final Determination.
    • If the amount in the Notice of Final Determination is less than the average monthly utility paid by the tenant between July 1, 2023 and June 30, 2024, then the adjustment is a downward adjustment.
    • If the amount in the Notice of Final Determination is more than the average monthly utility paid by the tenant between July 1, 2023 and June 30, 2024, than the adjustment is an upward adjustment.
      • Tenants can dispute this portion of the process by filing a Notice of Dispute with the Division. If filed, staff reviews the form provided to the Division by the tenant and determines if the adjustment is an upward or downward adjustment.
  7. If the adjustment is a downward adjustment, landlords must provide a thirty (30) day rent decrease notice to tenants immediately with the new total rent amount (current rent plus the utility adjustment). Tenants are no longer responsible for paying utility charges billed separately from rent or through RUBS incurred after the effective date of the rent decrease notice unless the utility charges accrued prior to the end of the 30 day notice period. Tenants are responsible for paying the total rent amount including the utility adjustment once the notice becomes effective.
  8. If the adjustment is an upward adjustment, landlords can add in the utility adjustment amount determined in the Notice of Final Determination with the next annually allowed rent increase. If the landlord does not want to give the annually allowed rent increase, that is okay. The landlord can give the utility adjustment without giving the annually allowed rent increase.
    • If giving the utility adjustment with the annually allowed increase, the rent increase must comply with all aspects of the CSFRA and State noticing requirements.
    • If giving the utility adjustment separately from the annually allowed increase, the adjustment must be given 12 months after the last rent increase or 12 months after the start of the initial term of tenancy.
    • At all times before the Utility Adjustment goes into effect, the landlord may continue to use RUBS or any similar system for tenancies starting before March 1, 2024. Moving forward, once the utility adjustment is implemented, only utilities that are submetered or separately metered and charged directly to the tenant can be billed separately from rent.
    • Calculation of allowed rent increase:
      1. First determine Annual General Adjustment (AGA) % on existing rent; then
      2. Add allowed Utility Adjustment amount to new rent.
    • No tenant hardship petitions are allowed for Utility Upward Adjustments. Tenants can only file a hardship petition for a banked increase, not for the AGA or the Utility Adjustment.
  9. If a landlord does not submit a petition within the deadlines or otherwise does not comply with the applicable requirements of the process, the current rent is now assumed to include utilities, utilities cannot be billed separately unless individually submetered, and tenants can file a petition for any previously incurred utility overcharges

If a tenant has already filed a petition that includes utility charges, the utilities portion of the petition will be paused during this transition process.

When do landlords need to submit petitions?

Landlords must submit their petition for initial review no later than the deadlines outlined below. The submittal period depends on the number of units on the property.

  • More than 20 Units: Deadline for Submission is within 6 months of the release of the petition process (September 1, 2024 through February 28, 2025).
  • 6 to 20 Units: Deadline for Submission is within 9 months of the release of the petition process (September 1, 2024 through May 31, 2025).
  • 1 to 5 Units: Deadline for Submission is within 12 months of the release of the petition process (September 1, 2024 through August 31, 2025).

Implementation Plan

Utility Petitions Implementation Plan

 

 Questions? Contact us.

650-903-6131  |  MVRent@mountainview.gov  |  298 Escuela Ave., Mountain View, CA 94040

Housing Help Center

Landlords: Every Thursday !  1 - 3 p.m.  | Tenants: 1st and 3rd Thursday! 6-8 p.m.

  • Rent Stabilization Division Office, 298 Escuela Ave., Mountain View, CA 94040  |  Walk-ins welcome
  • Attend virtually during clinic hours at mountainview.gov/housinghelpclinics

Resources

Petition Form and Workbooks

 Staff tip: First download and complete the Petition Form to determine the workbook applicable to your property and then download the workbook.

Representative Authorization Form

Information and Guides

Workshops 

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