San Jose Mun. Code Chapter 17.23 § 17.23.860
Authority to insure a fair return (San Jose Apartment Rent Ordinance and Tenant Protection Ordinance)
Operative Text
If a court finds that a Landlord has been denied a fair return, notwithstanding any other provision in this Section, the Hearing Officer may provide for a Rent adjustment that is adequate to provide a fair return.
San Jose Municipal Code § 17.23.860 establishes a safety-valve mechanism within the city's rent regulation framework: if a court determines that a landlord has been denied a fair return on their property, a Hearing Officer retains the authority to approve a rent adjustment sufficient to remedy that denial. This provision operates independently of other rules in the same section, meaning it can apply even when other provisions might otherwise limit or preclude such an adjustment. The rule reflects a constitutional principle that rent regulations cannot be applied in a way that deprives a property owner of a reasonable return on their investment.
Plain English — not legal advice.
Under § 17.23.860, property owners who believe San Jose's rent regulations are preventing them from earning a fair return have a recognized pathway to seek relief through a Hearing Officer. A compliant operator pursuing this avenue generally documents their financial position thoroughly, obtains a court finding that a fair return has been denied, and then presents that finding to a Hearing Officer to support a rent adjustment request. Because this provision explicitly overrides other limitations within the section, operators familiar with it understand it as a distinct basis for adjustment separate from standard petition processes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 17.23.860 grants Hearing Officers the power to approve rent increases beyond what other parts of the ordinance might allow, but only after a court has first found that the landlord was denied a fair return. Tenants should be aware that any rent adjustment issued under this provision is grounded in a judicial finding, not a unilateral landlord claim, which means the process involves formal legal proceedings before a Hearing Officer can act. Tenants facing a rent adjustment sought under this provision may wish to consult a tenant-rights organization or review resources available through San Jose's rent program to understand how such proceedings work and what participation options may be available to them.
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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