Eligible improvements include work mandated by a federal, state or local agency through the Health, Safety or Building Codes, or, due to the repair of damage caused by a natural disaster, e.g. fire, flood, or earthquake. Landlords need to provide proof that the work was done, e.g. contractor invoices, contracts, proof of payment, and a copy of any order issued by a public agency mandating the work. Once the damage or mandated work has been repaired, you have 12 months to file an application with the Department.
The Department applies the following formula to the Total Cost it determines eligible for the program: Total Cost divided by 60 months divided by the number of rental units that benefit from the improvement.
Example: Total cost to replace earthquake-damage at 24 unit building = $25,000.
To calculate the rent increase:
$25,000 ÷ 60 months = $416.67
$416.67 ÷ 24 units = $17.36 per month for each unit.
Multiple applications may be submitted, but the maximum temporary rent surcharge that can be applied through this program at one time to each rental unit is $75. The surcharge is collected for 60 months, or until the total amount approved is collected.
Landlords are encouraged obtain the Rehabilitation Work Application Packet before beginning work on a project. The packet consists of information on how to plan the project to facilitate the application. Also included is a list of Common Permits, which lists common improvements that require a building permit from the Department of Building and Safety, and the Rent Adjustment Commission’s (RAC) Regulations for the Rehabilitation Work Program. The RAC Regulations are the rules used to process applications.
How to submit an application:
Use the Rehabilitation Work online application which applies the relevant formula and completes the calculations. Any supporting documentation should be uploaded to the online application. Any documents that you were unable to upload should be mailed and received by the Department (P.O. Box 57398, Los Angeles, CA 90057-0398) within 30 days of filling the application. For your convenience, a mailing label will be provided at the completion of the application.