San Jose Mun. Code Chapter 17.23 § 17.23.325
Council initiated exceptions to limits on rent increases and other charges (San Jose Apartment Rent Ordinance and Tenant Protection Ordinance)
Operative Text
A. Other Fees, Charges, and Costs that May Be Passed Through to Tenants. The following charges may be passed through to Tenants, separate from Rent only in compliance with the requirements below. These charges 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. Annual Fees imposed under Chapter 17.23 . 1. Reserved. 2. New Charges. A Landlord may pass through to a Tenant a share of charges imposed on the Landlord by governmental agencies or by public utilities subject to regulation by the California Public Utilities Commission, subject to the limitations in subsection 3 below where all of the following conditions are met: a. The charge is a new charge, as opposed to an increase in an existing charge, which the governmental agency or the public utility requires the Landlord to pay; and b. Such pass through has been authorized by resolution of the City Council in which the charge in question was expressly identified; and c. The Landlord passes through the charge in accordance with the rules specified in such a resolution adopted by the City Council and the Regulations; and d. The Landlord passes through the charge in accordance with the rules specified in such a resolution adopted by the City Council and the Regulations. 3. Conditions to Pass Through Charges to Tenants. No charge described in subsection 2 above may be passed through to any Tenant pursuant to this Section unless all of the following conditions are satisfied: a. The total charge by the Landlord may not exceed fifty percent (50%) of the total amount paid by the Landlord; and b. No Landlord may require a Tenant to pay any amount of any charge that is attributable to any period of time that the Tenant was not entitled to use and occupy the Rental Unit; and c. No Landlord may require a Tenant to pay any amount of any charge that is attributable to common areas or Rental Units other than the Tenant Household's Rental Unit; and d. No Landlord may require a Tenant to pay more than its share of the charge attributable to that Tenant's Rental Unit that is permitted to be passed through to Tenant.
San Jose Municipal Code § 17.23.325 establishes a narrow category of fees—such as certain new governmental or regulated-utility charges—that landlords may bill to tenants separately from rent, provided specific conditions are satisfied. These pass-through charges are not counted as rent and therefore do not factor into annual general rent increase calculations. Critically, any such charge must first be expressly authorized by a San Jose City Council resolution, and the amount a landlord may recover from a single tenant is capped at fifty percent of what the landlord actually paid, limited strictly to the tenant's own unit and occupancy period.
Plain English — not legal advice.
Under § 17.23.325, compliant operators treat qualifying pass-through charges as entirely separate line items from rent and do not fold them into the base rent used for annual general increase calculations. A landlord generally confirms that a City Council resolution has expressly authorized the specific new governmental or regulated-utility charge before billing any tenant, and retains documentation showing the total amount paid to the agency or utility. When allocating the charge, compliant operators limit each tenant's share to no more than fifty percent of the landlord's actual cost, apportion it only to the tenant's individual unit (excluding common areas and other units), and charge only for the period during which that tenant had the right to occupy the unit, all in accordance with the applicable Council resolution and Rent Regulations.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 17.23.325 gives tenants the right to scrutinize any fee billed separately from rent that a landlord characterizes as a governmental or utility pass-through charge. Tenants can verify whether a San Jose City Council resolution expressly authorized that specific charge and whether the amount billed exceeds fifty percent of the landlord's cost, covers periods outside the tenant's occupancy, or includes costs attributable to common areas or other units. Tenants who believe a pass-through charge does not meet these requirements may raise the violation with the San Jose Rent Registry or a local tenant-rights organization to understand available complaint and defense options.
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 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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