Renters and Landlords frequently asked questions

The ordinance limits rent increases and stops landlords from decreasing housing services.

Fairfax’s Rent Stabilization Ordinance will limit rent increases to once a year. Annual rent increases will be capped at 60% of the annual percentage increase to the April, 2023 Consumer Price Index (CPI) and 75% of the annual percentage increase to the April, 2024 and every year thereafter, Consumer Price Index (CPI), or 5%, whichever is less.

The maximum annual rent increase for the period September 1, 2023 to August 31, 2024 is 60% of the April, 2023 CPI, which was 4.2% making the maximum annual rent increase for this time period 2.52%.

Once implemented, the ordinance will allow tenants to file petitions with the town when landlords increase their rent above the limit or there are decreases in “Housing Services.” For example, a tenant could file a petition if a landlord raised the price of parking or utilities over that which is allowed under the rental agreement and maximum rent increase. A tenant could also file a petition if the landlord stopped providing services such as pool or laundry access if promised under the rental agreement, or if the landlord failed to make repairs or allowed the building to fall into disrepair in violation of law or the rental agreement.

Fairfax’s ordinance will cover many residents. However, there are several exclusions from the law. If you rent a unit that falls into one of the following categories, Fairfax’s Rent Stabilization Ordinance does NOT protect your tenancy:

1. Single-family homes (where only one rental unit exists on the property)
2. Condominiums
3. Properties built after February 1, 1995
4. Dorm rooms
5. Mobile homes in mobile home parks
6. Hotel rooms, if you stayed in the room for less than thirty days
7. Hospitals, medical facilities, and other facilities where people receive care
8. Rental units which a government agency or authority fully owns, operates and manages
9. Units where the rent is limited by a legally binding restriction that restricts rent to no more than affordable rent.

December 2, 2022 and revisions were effective on October 6, 2023. The first maximum rent increase provision went into effect on September 1, 2023. The next rent increase will go into effect on September 1, 2024. The provisions related to petitions, hearings and rental housing fee collection will not be implemented until the Town enters into agreements for implementation support such as for staffing, hearing officers and software and the Council adopts a Resolution setting an implementation date.

The maximum annual rent increase is called the Annual General Adjustment (AGA). Under the ordinance, the AGA is set at 60% of the annual percentage increase to the April, 2023 Consumer Price Index (CPI) for the San Francisco-Oakland-Hayward region for the period from September 1, 2023 to August 31, 2024. The AGA can never go above 5%.

In most cases, the AGA will be lower than 5%. The April, 2023 CPI increase was 4.2%. Sixty percent of 4.2% is 2.52%. Therefore the AGA for the time period from September 1, 2023 to and through August 31, 2024 is 2.52%.

By June 30th of each year, the maximum allowable rent increase will be recalculated based on the change in CPI over the last 12 months, calculated using April’s CPI figure. Landlords are allowed to increase rents one time between September of that year and September of the following year.

If you are calculating rent prior to October 6, 2023 and to be effective after September 1, 2023:

Example

If you were paying $2,000 in March of 2022, your Landlord could increase your rent by an amount calculated as follows:

($2,000) + ($2,000 x .0252) = new rent
$2,000 + $50.40 = $2,050.40
$2,050.40 = new rent amount

$2,050.40 would be your new legal rent, even if, at one point, your rent was higher than this amount

Under the ordinance, the maximum annual rent increase is called the Annual General Adjustment (AGA). The AGA is set at 60% of the percentage increase to the April Consumer Price Index (CPI) for the San Francisco-Oakland-Hayward region for the time period of September 1, 2023 to and through August 31, 2024. The AGA can never go above 5% or below 0%.

In most cases, the AGA will be lower than 5%. This year, the regional CPI published in April, 2023 was 4.2%. 60% of 4.2% is 2.52%, therefore, for the time period of September 1, 2023 to and through August 31, 2024 the maximum annual rent increase is 2.52%.

By June 30 each year, the maximum allowable rent increase will be recalculated based on the change in April CPI over the last 12 months. Landlords are allowed to increase rents one time between September 1 of that year and August 31st of the following year. The maximum annual rent increase will be announced no later than June 30, 2024 next year, effective September 1, 2024. For the calculation effective September 1, 2024, the maximum rent increase will be 75% of the April, 2024 CPI.

Every landlord has a constitutional right to make a reasonable return on their investment. Once the ordinance is implemented, landlords will be able to file a petition in the event the allowed increase does not provide for a reasonable return on their investment. When the implementation support is in place, the Town Council will adopt a resolution setting an implementation date.

In general, you cannot change housing services without an agreement from the tenant. In the event that you cannot control the reduction in services, then you will have to reduce the rent an amount commensurate with the reduction in services.

Fairfax’s ordinance will cover most residential rental units. However, there are several exclusions from the law. Please see the Applicability Chart on the Town’s website for a list of types of covered and non-covered units.

Yes.

Rent control only applies to a given tenancy. If a tenant moves out, there are no restrictions on how much you can charge in rent for the new tenant.

The ordinance was effective on December 2, 2022. Provisions relating to petitions and rental housing fee collection, however, will not be implemented until the implementation support is in place and the Town Council adopts a resolution setting an implementation date. On October 6, 2023, the recent changes to the ordinance became effective.

Yes, but only to establish a base rent.

For existing tenants, if you wish to raise the rent after October 6, 2023, you will need to roll back the rent to the March, 2022 amount, plus the maximum allowable rent increase for the period beginning September 1, 2023, which is 2.52% (see further details below on how to calculate the new rent).

For new tenants that enter leases beginning on or after October 6, 2023, you may set the initial rental rate at an amount of your choice. However, this rate will become the base rent subject to the ordinance’s annual general adjustment going forward.