Vega Adjustment addresses situations where the base year NOI was unusually low, typically because the rent charged for 1 or more units was unreasonably low. Vega refers to a court case which required such adjustments when using the MNOI methodology for fair rate of return. The RHC adopted a Vega Adjustment methodology which allows the … Continue reading Vega Adjustment
Vacancy Decontrol refers to the situation that occurs when a tenant voluntarily vacates a unit; the landlord can then charge whatever the market rent is at that time.
Rollback date is a CSFRA term referring to the date (Oct. 19, 2015) taken to calculate the Base Rent for current tenancies whose establishment predates the rollback date. It is called a “rollback” date because the CSFRA required upon its effective date that rents could not be higher than the Base Rent.
The Rental Housing Committee per CSFRA shall consist of 5 Mountain View residents appointed by the City Council; no more than 2 members can own or manage rental property, or be realtors or developers.
NOI is net operating income. It is calculated by subtracting operating expenses from gross income.
The concept of Maintenance of Net Operating Income (MNOI) is the concept that the landlord was presumably receiving a fair rate of return in 2015, for example, and that the landlord should be able to maintain this NOI in the following years if they are to have a fair rate of return. This is a … Continue reading Maintenance of Net Operating Income (MNOI)
Just Cause for eviction means the Landlord has a good reason for terminating a tenancy, generally either failure to pay rent, or breach of the lease by the tenant. Reasons are stated in California Code of Civil Procedure and detailed in Dept. of Fair Employment and Housing definition. Tenants in all rental units (unless exempted … Continue reading Just Cause
Fair Rate of Return is a key term in rent-stabilization law as landlords may petition for an upward adjustment to the rent, above the Annual General Adjustment (AGA), if they can show that the AGA does not give them a fair rate of return. CSFRA excludes many factors that can be considered in determining a … Continue reading Fair Rate of Return