San Jose Mun. Code Chapter 17.23 § 17.23.410
Fee - Timing, method and exemptions (San Jose Apartment Rent Ordinance and Tenant Protection Ordinance)
Operative Text
A. Timing and Method. The fee imposed pursuant to Section 17.23.400 shall be paid at the time at which the residential occupancy permit fee, if applicable, is due and paid under Title 17 of this Code, provided that the fee may also be collected by a supplemental billing, or collected in an alternative manner if so provided in the Regulations. Said fee may be included as an Operating Expense under the definition contained in Section 17.23.820 . The City Manager shall report to the City Council no less than once each year regarding the City Manager's recommendation and the recommendation of the Commission as to the amount of such fee necessary to recover the costs of administering this Chapter. The amount of the fee shall be determined by resolution of the City Council adopted from time to time. The fee shall not exceed the amount found by the City Council to be necessary to administer this Chapter, and the Council's finding in this regard shall be final. Payment by the Landlord of the fee shall be made at the same time and in conjunction with the residential occupancy permit fee, or in an alternative manner if so provided in the Regulations and the Director of Finance is hereby authorized to collect said fees in this manner. B. Late Payment. Whoever fails, for more than thirty (30) days after date of notice, to pay the fee required hereunder shall, in addition to said fee, pay an additional late charge assessment as determined by resolution of the City Council. No portion of any charge or fee for late payment or submission authorized by this Section, or any portion thereof, may be passed-through to the Tenant. C. Fee Credit Upon Transfer. In the event the residential occupancy permit is transferred to a subsequent owner of the Rental Unit for which the fee has been paid, the subsequent owner shall be deemed to have paid said fee for the Rental Unit. D. Fee Exemptions. The Regulations shall provide procedures and standards for a Landlord to prove eligibility for fee exemptions for Rent Stabilized Units based on claims of owner occupied units or units exempt pursuant to the definition provided in Section 17.23.167.B, Rent Stabilized Unit.
San Jose Municipal Code § 17.23.410 establishes when and how the rental-program administration fee must be paid, generally tying it to the residential occupancy permit process or an alternative billing method authorized by the Regulations. The fee amount is set by City Council resolution on the recommendation of the City Manager and the Rent Stabilization Commission, and it cannot exceed what is necessary to cover program administration costs. Late payment beyond 30 days triggers an additional charge set by Council resolution, and any such late charge may not be passed on to tenants. Credits apply when a permit transfers to a new owner, and exemptions are available for qualifying owner-occupied or otherwise exempt units.
Plain English — not legal advice.
Under § 17.23.410, a compliant operator pays the rental-program fee alongside the residential occupancy permit fee—or through a supplemental or alternative billing process if the Regulations specify one—and does not pass any late-payment charges through to tenants. Operators seeking a fee exemption for owner-occupied or otherwise exempt units follow the procedures and standards set out in the Regulations. When a rental unit changes ownership and the permit transfers, the new owner receives credit for fees already paid.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 17.23.410 explicitly prohibits landlords from passing any late-payment fee or charge onto tenants, so a rent increase or surcharge attributed to the landlord's own late payment of this administrative fee is not permitted under the ordinance. Tenants who believe such a charge has been improperly passed through may raise this provision as a potential defense or basis for a complaint with San Jose's Rent Stabilization Program. Tenant-rights organizations familiar with San Jose's rent ordinance can help explain available 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 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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