Please review the following rent increase policy options and
provide your preferred ranking below:
Option 1: Tenant-Based 3% Cap. Rent limit increases would be limited to 3% annually so long as a tenant is in compliance with their lease and remains income eligible for their affordable unit. After a tenant moves out, landlords may adjust rents higher (based on Area Median Income increases. (Note that 3% roughly corresponds with long-term averages in inflation, but is lower than recent years’ high inflation.)
Option 2: Tenant-Based 5% Cap. Rent limit increases would be limited to 5% annually so long as a tenant remains in compliance with their lease and remains income eligible for their affordable. After a tenant moves out, landlords may adjust rents higher (based on Area Median Income increases. (Note that 5% is higher than long-term inflation averages, but is still lower than recent years’ high inflation.)
Option 3: Tenant-based Graduated Cap between 3-9%. Rent limit increases would be limited to between 3% and 9%, depending on how a tenant’s current rent compared to increases in the Area Median Income. If the Area Median Income increases are much higher than 3%, a higher cap would apply so that a tenant’s rent doesn’t fall too far below those trends. In no case would the rent cap be less than 35% below the Area Median Income-based rent. After a tenant moves out, landlords may adjust rents higher (based on Area Median Income increases. The goal of this is to address concerns from property owners and developers that their expenses may increase faster than 3% or 5%.
Option 4. Tenant-based Graduated Cap between 3-6%. Rent limit increases would be limited to between 3% and 6%, depending on how a tenant’s current rent compared to increases in the Area Median Income. In no case would the rent cap fall below 15% below the Area Median Income-based rent. This goal of this is also to address concerns of owners and developers about expenses, but through a simpler policy.