S.F. Admin. Code ch. 37 § 37.3

(a) Rent Increase Limitations for Tenants in Occupancy. Landlords may impose rent

increases upon tenants in occupancy only as provided below and as provided by subsections

37.3(d) and 37.3(g):

                (1) Annual Rent Increase. On March 1 of each year, the Board shall publish the

increase in the CPI for the preceding 12 months, as made available by the U.S. Department of

Labor. A landlord may impose annually a rent increase which does not exceed a tenant's base

rent by more than 60% of said published increase. In no event, however, shall the allowable

annual increase be greater than 7%.

                (2) Banking. A landlord who refrains from imposing an annual rent increase or

any portion thereof may accumulate said increase and impose that amount on the tenant's

subsequent rent increase anniversary dates. A landlord who, between April 1, 1982 and

February 29, 1984, has banked an annual 7% rent increase (or rent increases) or any portion

thereof may impose the accumulated increase on the tenant's subsequent rent increase

anniversary dates.

                (3) Capital Improvements, Rehabilitation, Energy Conservation Improvements,

and Renewable Energy Improvements. A landlord may impose rent increases based upon the

cost of capital improvements, rehabilitation, energy conservation improvements, or renewable

energy improvements, provided that such costs are certified pursuant to Sections 37.7 and

37.8B below; provided further that where a landlord has performed seismic strengthening in

accordance with Building Code Chapters 16B and 16C, no increase for capital improvements

(including but not limited to seismic strengthening) shall exceed, in any twelve (12) month period,

10% of the tenant's base rent, subject to rules adopted by the Board to prevent landlord hardship

and to permit landlords to continue to maintain their buildings in a decent, safe and sanitary

condition. A landlord may accumulate any certified increase which exceeds this amount and

impose the increase in subsequent years, subject to the 10% limitation. Nothing in this

subsection shall be construed to supersede any Board rules or regulations with respect to

limitations on increases based upon capital improvements whether performed separately or in

conjunction with seismic strengthening improvements pursuant to Building Code Chapters 16B

and 16C.

                (4) Utilities. A landlord may impose increases based upon the cost of utilities as

provided in Section 37.2(q) above.

                (5) Water: Charges Related to Excess Water Use, and 50% Passthrough of

Water Bill Charges Attributable to Water Rate Increases Resulting From Issuance of Water

System Improvement Revenue Bonds Authorized at the November 2002 Election.

                          (A) Charges Related to Excess Water Use. A landlord may impose

increases not to exceed fifty percent of the excess use charges (penalties) levied by the San

Francisco Water Department on a building for use of water in excess of Water Department

allocations under the following conditions:

                                    (i) The landlord provides tenants with written certification that the

following have been installed in all units: (1) permanently-installed retrofit devices designed to

reduce the amount of water used per flush or low-flow toilets (1.6 gallons per flush); (2) low-flow

showerheads which allow a flow of no more than 2.5 gallons per minute; and (3) faucet aerators

(where installation on current faucets is physically feasible); and

                                    (ii) The landlord provides the tenants with written certification that

no known plumbing leaks currently exist in the building and that any leaks reported by tenants in

the future will be promptly repaired; and

(iii) The landlord provides the tenants with a copy of the water bill

for the period in which the penalty was charged. Only penalties billed for a service period which

begins after the effective date of the ordinance [April 20, 1991] may be passed through to

tenants. Where penalties result from an allocation which does not reflect documented changes

in occupancy which occurred after March 1, 1991, a landlord must, if requested in writing by a

tenant, make a good faith effort to appeal the allotment. Increases based upon penalties shall

be pro-rated on a per room basis provided that the tenancy existed during the time the penalty

charges accrued. Such charges shall not become part of a tenant's base rent. Where a penalty

in any given billing period reflects a 25% or more increase in consumption over the prior billing

period, and where that increase does not appear to result from increased occupancy or any

other known use, a landlord may not impose any increase based upon such penalty unless

inspection by a licensed plumber or Water Department inspector fails to reveal a plumbing or

other leak. If the inspection does reveal a leak, no increase based upon penalties may be

imposed at any time for the period of the unrepaired leak.

                          (B)       Fifty Percent (50%) Passthrough of Water Bill Charges Attributable

to Water Rate Increases Resulting From Issuance of Water System Improvement Revenue

Bonds Authorized at the November 2002 Election. A landlord may pass through fifty percent

(50%) of the water bill charges attributable to water rate increases resulting from issuance of

Water System Improvement Revenue Bonds authorized at the November 5, 2002 election

(Proposition A), to any unit that is in compliance with any applicable laws requiring water

conservation devices. The landlord is not required to file a petition with the Board for approval of

such a cost passthrough. Such cost passthroughs are subject to the following:

                                    (i) Affected tenants shall be given notice of any such passthrough

as provided by applicable notice of rent increase provisions of this Chapter 37, including but not

limited to Section 37.3(b)(3).

                                    (ii) A tenant may file a hardship application with the Board, and be

granted relief from all or part of such a cost passthrough;

                                    (iii) If a tenant's hardship application is granted, the tenant's

landlord may utilize any available Public Utilities Commission low-income rate discount program

or similar program for water bill reduction, based on that tenant's hardship status;

                                    (iv) A landlord shall not impose a passthrough pursuant to Section

37.3(a)(5)(B) if the landlord has filed for or received Board approval for a rent increase under

Section 37.8(e)(4) for increased operating and maintenance expenses in which the same

increase in water bill charges attributable to water rate increases resulting from issuance of any

water revenue bonds authorized at the November 5, 2002 election was included in the

comparison year cost totals.

                                    (v) Where a tenant alleges that a landlord has imposed a water

revenue bond passthrough that is not in compliance with Section 37.3(a)(5)(B), the tenant may

petition for a hearing under the procedures provided by Section 37.8. In such a hearing the

landlord shall have the burden of proving the accuracy of the calculation that is the basis for the

increase. Any tenant petition challenging such a passthrough must be filed within one year of

the effective date of the passthrough.

                                    (vi) A tenant who has received a notice of passthrough or a

passthrough under this Section 37.3(a)(5)(B) shall be entitled to receive a copy of the applicable

water bill from the landlord upon request.

                                    (vii) The amount of permissible passthrough per unit under this

Section 37.3(a)(5)(B) shall be determined as follows:

                                              (1) The San Francisco Public Utilities Commission will

determine the charge per unit of water, if any, that is attributable to water rate increases resulting

from issuance of water system improvement revenue bonds authorized at the November 5, 2002

election.

                                              (2) The charge identified in Section 37.3(a)(5)(B)(vii)(1)

shall be multiplied by the total units of water used by each customer, for each water bill. The

result is the total dollar amount of the water bill that is attributable to water rate increases

resulting from issuance of water system improvement revenue bonds authorized at the

November 5, 2002 election. That charge shall be a separate line item on each customer's water

bill.

                                               (3) The dollar amount calculated under Section

37.3(a)(5)(B)(vii)(2) shall be divided by two (since a 50% passthrough is permitted), and then

divided by the total number of units covered by the water bill, including commercial units. The

resulting dollar figure shall be divided by the number of months covered by the water bill cycle

(most are two-month bill cycles), to determine the amount of that water bill that may be passed

through to each residential unit for each month covered by that bill.

                                               (4) These passthroughs may be imposed on a monthly

basis. These passthroughs shall not become part of a tenant's base rent. The amount of each

passthrough may vary from month to month, depending on the amount calculated under

Sections 37.3(a)(5)(B)(vii)(1) through (3).

                                     (viii) The Board may amend its rules and regulations as necessary

to implement this Section 37.3(a)(5)(B).

                 (6) Property Tax. A landlord may impose increases based upon a 100%

passthrough of the change in the landlord's property tax resulting from the repayment of general

obligation bonds of the City and County of San Francisco approved by the voters between

November 1, 1996, and November 30, 1998 as provided in Section 37.2(q).

                 A landlord may impose increases based upon a 50% passthrough of the change

in the landlord's property tax resulting from the repayment of general obligation bonds of the City

and County of San Francisco approved by the voters after November 14, 2002, as provided in

Section 37.2(q), and subject to the following requirement: Any rent increase for bonds approved

after the effective date of this initiative Ordinance [November 2000 Proposition H, effective

December 21, 2000] must be disclosed and approved by the voters.

                 A landlord may impose increases based upon a 50% passthrough of the change

in the landlord's property tax resulting from the repayment of San Francisco Unified School

District or San Francisco Community College District general obligation bonds approved by the

voters after November 1, 2006, as provided in Section 37.2(q).

                 The amount of such increases shall be determined for each tax year as follows:

(A) The Controller and the Board of Supervisors will determine the

percentage of the property tax rate, if any, in each tax year attributable to the general obligation

bonds and repayable within such tax year.

                          (B) This percentage shall be multiplied by the total amount of the net

taxable value as of November 1 of the applicable tax year. The result is the dollar amount of

property taxes for that tax year for a particular property attributable to the repayment of the

general obligation bonds.

                          (C) The dollar amount calculated under subsection (a)(6)(B) shall be

divided by the total number of all units in each property, including commercial units. That figure

shall also be discounted to reflect the percentage passthrough that the voters authorized, as

applicable: specifically, in the case of the 50% passthroughs authorized for general obligation

bonds of the City and County of San Francisco approved by the voters after November 14, 2002

and general obligation bonds of the San Francisco Unified School District or San Francisco

Community College District approved by the voters after November 1, 2006, the figure shall be

divided by two. The figure shall then be divided by the total number of months that the

passthrough may apply pursuant to subsection (a)(6)(D)(i), to determine the monthly per unit

costs for that tax year of the repayment of general obligation bonds.

                          (D) Landlords may pass through to each unit in a particular property the

dollar amount calculated under subsections (a)(6)(A), (B), and (C), as provided in this subsection

(a)(6)(D).

                                    (i) If a passthrough is imposed on or before December 31, 2020, it

shall apply only for the 12-month period after it is imposed. Starting January 1, 2021, all

passthroughs shall apply for the same number of months covered by the property tax bills used

in the passthrough calculation, and the calculation may not be based on tax bills issued more

than three years prior to the year in which the passthrough was imposed.

                                    (ii) The landlord shall give affected tenants notice of the

passthrough as provided by applicable notice of rent increase provisions of this Chapter 37,

including but not limited to Section 37.3(b)(3). The passthroughs may be imposed at any time in

the calendar year, provided that the landlord serves notice of such passthrough to be effective

on the anniversary date of each tenant’s occupancy of the property. The passthroughs shall not

become a part of a tenant's base rent. The amount of each passthrough imposed pursuant to

subsection (a)(6) may vary from year-to-year, depending on the amount calculated under

subsections (a)(6)(A), (B), and (C). A landlord may impose the passthrough described in this

subsection (a)(6) for a particular tax year only with respect to those tenants who were residents

of a particular property on November 1 of the applicable tax year. A landlord shall not impose a

passthrough pursuant to this subsection (a)(6) if the landlord has filed for or received Board

approval for a rent increase under Section 37.8(e)(4) for increased operating and maintenance

expenses in which the same increase in property taxes due to the repayment of general

obligation bonds was included in the comparison year cost totals.

                          (E) A tenant who has received a passthrough under this subsection (a)(6)

may file a financial hardship application with the Board, and the Board may grant the tenant

complete or partial relief from that part of the passthrough that is attributable to general

obligation bonds approved by the voters on or after November 5, 2019. The standards and

procedures for the financial hardship application shall be as set forth in Sections 37.7(h)-(i).

                          (F) The Board shall have available a form which explains how to calculate

the passthrough. Landlords must provide to tenants, on or before the date that notice is served

on the tenant of a passthrough permitted under this subsection (a)(6), a copy of the completed

form. This completed form shall be provided in addition to the Notice of Rent Increase required

under Section 37.3(b). Where a tenant alleges that a landlord has imposed a charge which

exceeds the limitations set forth in this subsection (a)(6), the tenant may petition for a hearing

under the procedures provided by Section 37.8. In such a hearing, the landlord shall have the

burden of proving the accuracy of the calculation that is the basis for the increase. Any tenant

petition challenging such a passthrough must be filed within one year of the effective date of the

passthrough.

                          (G) The Board may amend its rules and regulations as necessary to

implement this subsection (a)(6).

(7) RAP Loans. A landlord may impose rent increases attributable to the Chief

Administrative Officer's amortization of the RAP loan in an area designated on or after July 1,

1977 pursuant to Chapter 32 of the San Francisco Administrative Code.

                (8) Additional Increases. A landlord who seeks to impose any rent increase

which exceeds those permitted above shall petition for a rental arbitration hearing pursuant to

Section 37.8 of this chapter.

                (9) A landlord may impose a rent increase to recover costs incurred for the

remediation of lead hazards, as defined in San Francisco Health Code Article 11 or 26. Such

increases may be based on changes in operating and maintenance expenses or for capital

improvement expenditures as long as the costs which are the basis of the rent increase are a

substantial portion of the work which abates or remediates a lead hazard, as defined in San

Francisco Health Code Article 11 or 26, and provided further that such costs are approved for

operating and maintenance expense increases pursuant to Section 37.8(e)(4)(A) and certified as

capital improvements pursuant to Section 37.7 below.

                When rent increases are authorized by this subsection 37.3(a)(9), the total rent

increase for both operating and maintenance expenses and capital improvements shall not

exceed 10% in any twelve (12) month period. If allowable rent increases due to the costs of lead

remediation and abatement work exceed 10% in any 12 month period, an Administrative Law

Judge shall apply a portion of such excess to approved operating and maintenance expenses for

lead remediation work, and the balance, if any, to certified capital improvements, provided,

however, that such increase shall not exceed 10%. A landlord may accumulate any approved or

certified increase which exceeds this amount, subject to the 10% limit.

                (10) With respect to units occupied by recipients of tenant-based rental

assistance:

                          (A) If the tenant's share of the base rent is not calculated as a fixed

percentage of the tenant's income, such as in the Housing Choice Voucher Program and the

Over-FMR Tenancy Program, or if the tenant is receiving assistance under the HOPWA rental

subsidy program, then:

(i) If the base rent is equal to or greater than the Payment

Standard, the rent increase limitations in Sections 37.3(a)(1) and (2) shall apply to the entire

base rent, and the arbitration procedures for those increases set forth in section 37.8 and 37.8A

shall apply.

                                    (ii) If the base rent is less than the Payment Standard, the rent

increase limitations of this Chapter shall not apply; provided, however, that any rent increase

which would result in the base rent being equal to or greater than the Payment Standard shall

not result in a new base rent that exceeds the Payment Standard plus the increase allowable

under Section 37.3(a)(1).

                          (B) If the tenant's share of the base rent is calculated as a fixed

percentage of the tenant's income, such as in the Section 8 Certificate Program, the rent

increase limitations in Section 37.3(a)(1) and (2) shall not apply. In such circumstances,

adjustments in rent shall be made solely according to the requirements of the tenant-based

rental assistance program.

                (11) Additional occupants.

                          (A) Except as provided in Section 37.3(a)(11)(B), a landlord may not

impose increases solely because a tenant has added an additional occupant to an existing

tenancy, including, but not limited to, a newborn child or family member as defined in Section

401 of the Housing Code. The prohibition on increases mandated by this Subsection (A) shall

apply notwithstanding a rental agreement or lease that specifically permits a rent increase for

additional occupants.

                          (B) A landlord may petition the Board for a rent increase pursuant to

Section 37.3(a)(8) for costs associated with the addition of occupants authorized under Section

37.9(a)(2)(C).

                          (C) Rent increases otherwise permitted by the Costa-Hawkins Rental

Housing Act, California Civil Code Section 1950 et seq. (as it may be amended from time to

time) are not prohibited or limited by this Section 37.3(a)(11).

     (b) Notice of Rent Increase for Tenants in Occupancy. On or before the date upon

which a landlord gives a tenant legal notice of a rent increase, the landlord shall inform the

tenant, in writing, of the following:

                (1) Which portion of the rent increase reflects the annual increase, and/or a

banked amount, if any;

                (2) Which portion of the rent increase reflects costs for increased operating and

maintenance expenses, rents for comparable units, and/or capital improvements, rehabilitation,

energy conservation improvements, or renewable energy improvements certified pursuant to

Section 37.7. Any rent increase certified due to increases in operating and maintenance costs

shall not exceed seven percent.

                (3) Which portion of the rent increase reflects the passthrough of charges for:

gas and electricity; or the passthrough of increased water bill charges attributable to water rate

increases resulting from issuance of water revenue bonds authorized at the November 2002

election as provided by Section 37.3(a)(5)(B) ), which charges and calculations of charges shall

be explained in writing on a form provided by the Board; or the passthrough of general obligation

bond measure costs as provided by Section 37.3(a)(6), which charges shall be explained in

writing on a form provided by the Board as described in Section 37.3(a)(6)(E);

                (4) Which portion of the rent increase reflects the amortization of the RAP loan,

as described in Section 37.3(a)(7) above.

                (5) Nonconforming Rent Increases. Any rent increase which does not conform

with the provisions of this section shall be null and void.

                (6) With respect to rental units occupied by recipients of tenant-based rental

assistance, the notice requirements of this Subsection (b) shall be required in addition to any

notice required as part of the tenant-based rental assistance program.

     (c) Initial Rent Limitation for Subtenants. A tenant who subleases his or her rental unit

may charge no more rent upon initial occupancy of the subtenant or subtenants than that rent

which the tenant is currently paying to the landlord.

     (d) Costa-Hawkins Rental Housing Act (Civil Code Sections 1954.50, et seq.).

Consistent with the Costa-Hawkins Rental Housing Act (Civil Code Sections 1954.50, et seq.)

and regardless of whether otherwise provided under Chapter 37:

                (1) Property Owner Rights to Establish Initial and All Subsequent Rental Rates

for Separately Alienable Parcels.

                          (A) An owner of residential real property may establish the initial and all

subsequent rental rates for a dwelling or a unit which is alienable separate from the title to any

other dwelling unit or is a subdivided interest in a subdivision as specified in subdivision (b), (d),

or (f) of Section 11004.5 of the California Business and Professions Code. The owner's right to

establish subsequent rental rates under this paragraph shall not apply to a dwelling or unit where

the preceding tenancy has been terminated by the owner by notice pursuant to California Civil

Code Section 1946 or has been terminated upon a change in the terms of the tenancy noticed

pursuant to California Civil Code Section 827: in such instances, the rent increase limitation

provisions of Chapter 37 shall continue to apply for the duration of the new tenancy in that

dwelling or unit.

                          (B) Where the initial or subsequent rental rates of a Subsection

37.3(d)(1)(A) dwelling or unit were controlled by the provisions of Chapter 37 on January 1,

1995, the following shall apply:

                                    (i) A tenancy that was in effect on December 31, 1995 remains

subject to the rent control provisions of this Chapter 37, and the owner may not otherwise

establish the subsequent rental rates for that tenancy.

                                    (ii) On or after January 1, 1999 an owner may establish the initial

and all subsequent rental rates for any tenancy created on or after

January 1, 1996.

                          (C) An owner's right to establish subsequent rental rates under

Subsection 37.3(d)(1) shall not apply to a dwelling or unit which contains serious health, safety,

fire or building code violations, excluding those caused by disasters, for which a citation has

been issued by the appropriate governmental agency and which has remained unabated for six

months or longer preceding the vacancy.

                (2) Conditions for Establishing the Initial Rental Rate Upon Sublet or Assignment.

Except as identified in this Subsection 37.3(d)(2), nothing in this Subsection or any other

provision of law of the City and County of San Francisco shall be construed to preclude express

establishment in a lease or rental agreement of the rental rates to be applicable in the event the

rental unit subject thereto is sublet, and nothing in this Subsection shall be construed to impair

the obligations of contracts entered into prior to January 1, 1996, subject to the following:

                          (A) Where the original occupant or occupants who took possession of the

dwelling or unit pursuant to the rental agreement with the owner no longer permanently reside

there, an owner may increase the rent by any amount allowed by this section to a lawful

sublessee or assignee who did not reside at the dwelling or unit prior to January 1, 1996.

However, such a rent increase shall not be permitted while:

                                    (i) The dwelling or unit has been cited in an inspection report by

the appropriate governmental agency as containing serious health, safety, fire, or building code

violations, as defined by Section 17920.3 of the California Health and Safety Code, excluding

any violation caused by a disaster; and,

                                    (ii) The citation was issued at least 60 days prior to the date of the

vacancy; and,

                                    (iii) The cited violation had not been abated when the prior tenant

vacated and had remained unabated for 60 days or for a longer period of time. However, the 60-

day time period may be extended by the appropriate governmental agency that issued the

citation.

                          (B) This Subsection shall not apply to partial changes in occupancy of a

dwelling or unit where one or more of the occupants of the premises, pursuant to the agreement

with the owner provided for above (37.3(d)(2)), remains an occupant in lawful possession of the

dwelling or unit, or where a lawful sublessee or assignee who resided at the dwelling or unit prior

to January 1, 1996, remains in possession of the dwelling or unit. Nothing contained in this

Subsection 37.3(d)(2) shall be construed to enlarge or diminish an owner's right to withhold

consent to a sublease or assignment.

                          (C) Acceptance of rent by the owner shall not operate as a waiver or

otherwise prevent enforcement of a covenant prohibiting sublease or assignment or as a waiver

of an owner's rights to establish the initial rental rate unless the owner has received written

notice from the tenant that is party to the agreement and thereafter accepted rent.

                (3) Termination or Nonrenewal of a Contract or Recorded Agreement with a

Government Agency Limiting Rent. An owner who terminates or fails to renew a contract or

recorded agreement with a governmental agency that provides for a rent limitation to a qualified

tenant, shall be subject to the following:

                          (A) The tenant(s) who were beneficiaries of the contract or recorded

agreement shall be given at least 90 days' written notice of the effective date of the termination

and shall not be obligated to pay more than the tenant's portion of the rent, as calculated under

that contract or recorded agreement, for 90 days following receipt of the notice of termination or

nonrenewal.

                          (B) The owner shall not be eligible to set an initial rent for three years

following the date of the termination or nonrenewal of the contract or agreement.

                          (C) The rental rate for any new tenancy established during the three-year

period in that vacated dwelling or unit shall be at the same rate as the rent under the terminated

or nonrenewed contract or recorded agreement, plus any increases authorized under this

Chapter 37 after the date of termination/non renewal.

                          (D) The provisions of Subsections 37.3(d)(3)(B) and (C) shall not apply to

any new tenancy of 12 months or more duration established after January 1, 2000, pursuant to

the owner's contract or recorded agreement with a governmental agency that provides for a rent

limitation to a qualified tenant unless the prior vacancy in that dwelling or unit was pursuant to a

nonrenewed or canceled contract or recorded agreement with a governmental agency that

provides for a rent limitation to a qualified tenant.

                (4) Subsection 37.3(d) does not affect the authority of the City and County of San

Francisco to regulate or monitor the basis or grounds for eviction.

                (5) This Subsection 37.3(d) is intended to be and shall be construed to be

consistent with the Costa-Hawkins Rental Housing Act (Civil Code Sections 1954.50. et seq.)

(e) Effect of Deferred Maintenance on Passthroughs for Lead Remediation Techniques.

                (1) When lead hazards are remediated or abated pursuant to San Francisco

Health Code Article 11 or 26, or are violations of state or local housing and/or health and safety

laws, there shall be a rebuttable presumption that the lead hazards are caused or created by

deferred maintenance as defined herein of the current or previous landlord. If the landlord fails

to rebut the presumption, the costs of such work shall not be passed through to tenants as either

a capital improvement or an operating and maintenance expense. If the landlord rebuts the

presumption, he or she shall be entitled to a rent increase if otherwise justified by the standards

set forth in this Chapter.

                (2) For purposes of the evaluation of petitions for rent increases for lead

remediation work, maintenance is deferred if a reasonable landlord under the circumstances

would have performed, on a regular basis, the maintenance work required to keep the premises

from being in violation of housing safety and habitability standards set forth in California Civil

Code Section 1941 and the San Francisco Municipal Code. In order to prevail on a deferred

maintenance defense, a tenant must show that the level of repair or remediation currently

required would have been lessened had maintenance been performed in a more timely manner.

     (f) Costa-Hawkins Vacancy Control. Where a landlord has terminated the previous

tenancy as stated in either subsection (1), (2) or (3) below, for the next five years from the

termination, the initial base rent for the subsequent tenancy shall be a rent not greater than the

lawful rent in effect at the time the previous tenancy was terminated, plus any annual rent

increases available under this Chapter 37. This Section 37.3(f) is intended to be consistent with

California Civil Code Section 1954.53(a)(1)(A)-(B).

                (1) Where the previous tenancy was terminated by a notice of termination of

tenancy issued under California Civil Code Section 1946.1 stating the ground for recovery of

possession under Sections 37.9(a)(8), (9), (10), (11), or (14) of this Code. For purposes of the

termination of the tenancy under Section 37.9(a)(9), the initial rent for the unit may be set by a

subsequent bona fide purchaser for value of the condominium.

                (2) Where the previous tenancy was terminated upon a change in terms of

tenancy noticed under California Civil Code Section 827, except a change in rent permitted by

law. Within 10 days after serving the notice of termination based upon a change in terms of

tenancy under Civil Code Section 827, the landlord shall notify the Board in writing of the

monthly rent the tenant was paying when the landlord gave the notice to the tenant, and provide

a copy of the notice to the Board to the tenant.

                (3) Where the landlord terminated or did not renew a contract or recorded

agreement with a governmental agency that provided for a rent limitation to a qualified tenant.

When a landlord terminates a tenant-based rental assistance program, the landlord shall, within

10 days after giving the notice of termination of the program to the tenant, notify the Board in

writing of the monthly rent the tenant was paying and the monthly rent paid by the program to the

landlord on behalf of the tenant when the landlord gave notice to the tenant, and provide a copy

of the notice to the Board to the tenant.

        (g) New Construction and Substantial Rehabilitation.

                (1) An owner of a residential dwelling or unit which is newly constructed and first

received a certificate of occupancy after the effective date of Ordinance No. 276-79 (June 13,

1979), or which the Rent Board has certified has undergone a substantial rehabilitation, may

establish the initial and all subsequent rental rates for that dwelling or unit, except:

                (A) where rent restrictions apply to the dwelling or unit under Sections 37.3(d) or

37.3(f);

                (B) where the dwelling or unit is a replacement unit under Section 37.9A(b);

                (C) as provided for certain categories of Accessory Dwelling Units under Section

37.2(r)(4)(D); and

                (D) as provided in a development agreement entered into by the City under

Administrative Code Chapter 56.