San Jose Mun. Code Chapter 17.23 § 17.23.320
Exceptions to limits on rent increases and other charges (San Jose Apartment Rent Ordinance and Tenant Protection Ordinance)
Operative Text
A. Rent Increase Awards for Landlord Fair Return Petitions. A Landlord may increase rents in excess of the Annual General Increase to the extent a higher rent is authorized in a final Hearing Officer's decision on a Landlord Petition for fair return filed in accordance with Part 8 of this Chapter. B. Pass Through Awards for Landlord Specified Capital Improvements Petitions. A Landlord may impose a pass-through charge in addition to Rent to the extent authorized in a final Administrative Decision or Hearing Officer's decision on a Landlord Specified Capital Improvements Petition filed in accordance with Section 17.23.330 . Provided however, in no event may the total monthly amount imposed for Specified Capital Improvements exceed three percent (3%) of the monthly Rent validly charged for the Rent Stabilized Unit on the date of the filing of the Petition. Charges for Specified Capital Improvements shall not be considered Rent for purposes of this Chapter and shall not increase when Rent increases, nor shall they be considered part of Rent for the purpose of calculation of the Annual General Increase. Following a valid vacancy decontrol of Rent for a Rent Stabilized Unit in accordance with Section 17.23.300 , any awarded charges for Specified Capital Improvements for that unit shall expire. C. One-Time Payments for New Additional Housing Services. A Tenant Household may file a joint Petition to allow the Tenant to make a payment of a one-time fee or increase the Tenant's Security Deposit in order to receive or be entitled to certain new or additional Housing Services that are expressly excluded in the written rental agreement, to the extent that these Housing Services that are identified in the Regulations. The one-time payment for new or additional Housing Services may not exceed five percent (5%) of the monthly Rent validly charged at the time of the Tenant request. The one-time payment or additional Security Deposit shall not be considered Rent for purposes of this Chapter and shall not be included when calculating a Rent increase or subject to the one (1) increase in any twelve (12)-month period limitations in Section 17.23.310 .
San Jose Municipal Code § 17.23.320 establishes three exceptions to the standard rent increase limits under the city's rent stabilization program. A landlord may exceed the Annual General Increase if a Hearing Officer approves a fair return petition, or impose a separate capital improvement pass-through charge (capped at 3% of monthly rent) following an approved petition. Tenants may jointly petition to make a one-time payment—capped at 5% of monthly rent—to access new housing services excluded from their lease, and that payment is not counted as rent.
Plain English — not legal advice.
Under § 17.23.320, compliant operators pursuing above-guideline increases or capital improvement pass-throughs file the appropriate petition and wait for a final administrative decision before collecting any additional amounts. For Specified Capital Improvements, operators track that the monthly pass-through charge never exceeds 3% of the stabilized rent at the time of filing, and they discontinue any awarded charges upon a valid vacancy decontrol event. Landlords generally maintain documentation of petition filings, decisions, and charge calculations to demonstrate compliance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 17.23.320 means that any rent increase beyond the Annual General Increase, or a capital improvement surcharge, must be backed by a final official decision—tenants are not obligated to pay such amounts without that authorization. If a landlord collects charges that appear to exceed the 3% cap on capital improvements or lack a valid decision, tenants may raise that as a violation before the San Jose rent board or explore options through a local tenant-rights organization. Tenants interested in accessing new housing services excluded from their lease can learn about the joint petition process described in this provision through the city's rent stabilization program office.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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