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Court Says Rent Can Rise with Improvements

SAN FRANCISCO-Proposition H has prevented tenant rent hikes for many years, but property managers of apartment complexes have the upper hand again with a new court order which allows them to charge tenants for capital improvement costs.

By Michelle Savage | Updated on August 14, 2001

SAN FRANCISCO-Proposition H, which prevented rent hikes to pay for building improvements, has been blocked by a court order issued by Superior Court Judge A. James Robinson, on the grounds that it prevents property owners from earning a fair share of return.

The judge ruled that Proposition H refers to prices in effect when rent control began in the late 70′s and it is not clear for property owners who invested in apartment complexes since then how to calculate their financial position.

Proposition H allowed property owners to charge tenants for seismic upgrades, but as far as any other reimbursements, they were forced to prove that they were not making money even with their overall investment appreciation.

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