Title
Introduction of Ordinance Amending Alameda Municipal Code Article XV (Rent Control, Limitations on Evictions and Relocation Payments to Certain Displaced Tenants) to Prohibit the Use of Ratio Utility Billing Systems for Utility Charges and Providing a Process for Landlords to Receive a One-Time Utility Adjustment for Rent. (Rent Program 20723849)
Body
To: Honorable Mayor and Members of the City Council
From: Yibin Shen, City Attorney
EXECUTIVE SUMMARY
Many rental agreements for Alameda rental units provide that a tenant will be charged for certain landlord-provided utilities that are not separately metered, either with a flat monthly fee or through what is known as a Ratio Utility Billing System ("RUBS"). RUBS is a method landlords use to allocate utility costs among tenants in multi-family properties where the total utility costs are divided proportionally based on a formula, for example, the size of the rental unit, the number of bedrooms, the number of tenants, etc. These charges are in addition to the monthly rent and, in the case of RUBS, vary, sometimes significantly, from month to month.
The City of Alameda's (City) Rent Control Ordinance (Ordinance) allows landlords to increase utility charges if they use a RUBS or if the utility is not identified in the lease as included with the rent. Alameda is one of the few jurisdictions with local rent control provisions that treat such utility charges as separate from the rent and not subject to limits on rent increases.
In recent years, Alameda Rent Program (Rent Program) staff has noted an increase in tenant concerns and complaints about utility charges. In particular, tenants have reported to staff that their RUBS charges have increased significantly and when they attempt to secure information from the property manager or, usually, from the company that provides these services to property owners, there is either no or little explanation.
Staff has concluded that these utility charges could be u...
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