Frequently Asked Questions

Rent stabilization is a local law that limits rent increases above the allowable limit within a 12-month period for certain residential rental units in the City.  The ordinance codified in chapter 6.06 is being adopted pursuant to the state of California’s Costa-Hawkins Act and the city’s police power authority to protect public health, safety, and welfare.

The Residential Rent Control Act, also known as the Costa Hawkins Act, was enacted in 1995. Costa Hawkins sets limits on the kind of rent control policies cities can impose and exempts certain types of residential rental units from rent control ordinances. It also allows landlords to reset the rental rate on rent-controlled rental units when they become vacant or when the last rent-controlled tenant no longer permanently resides at the unit.

To learn more about the Costa Hawkins Act please click here

Costa Hawkins Act rent control applies as follows:

• For pre-1995 buildings, annual rent adjustments may be set at an amount specified by the City.
• Rent Control cannot be applied to rental units (duplexes, triplexes, fourplexes and multifamily) with certificates of occupancy issued after February 1, 1995.
• Condominiums and single-family homes are not subject to rent control regulations.
• Duplexes, regardless of owner-occupancy may, at Council discretion, be subject to rent control regulations.

1.    A rental unit exempt pursuant to the Costa-Hawkins Rental Housing Act (California Civil Code Sections 1954.50 through 1954.535), including but not limited to:

• A unit that has a certificate of occupancy issued after February 1, 1995.
•  A unit that is alienable separate from the title to any other dwelling unit, including single-family residences, condominiums, and townhomes.

2.    Any subtenancy or similar arrangement within an exempt residential rental unit.

3.    Transient rental units in hotels, motels and inns, which are rented to guests for a period of fewer than thirty days. This exemption does not apply (a) to a tenant who has resided at the property for more than thirty continuous days, (b) a tenant who has entered into an agreement to lease a rental unit for 30 days or more, (c) where a landlord has violated California Civil Code Section 1940.1 with regard to the tenant, or (d) to a residential rental unit that is a registered or grandfathered short-term vacation rental, as defined in Chapter 18.02, with a certificate of occupancy issued prior to February 1, 1995.

4.    Rental units in any hospital, convent, monastery, extended medical care facility, nonprofit home for the aged, or dormitory as defined in California Building Code Section 202 that is solely owned and operated by an accredited institution of higher education.

5.    Rental units which a government unit, agency or authority fully owns, operates and manages. This exemption applies only if applicable federal or state law or administrative regulation specifically exempt such units from municipal rent stabilization.

6.    Any residential rental unit located in a development where the dwelling units are subject to legally binding restrictions enforceable against and/or governing such units that limit the rent to no more than an affordable rent, as such term is defined in California Health and Safety Code Section 50053 and as subsequently amended.

By August 1st of each year, the City will determine the maximum allowable rent increase that will be effective as of September 1st of that year. The City calculates the maximum allowable rent increase to be the lesser of 3%, or 80% of the percent change in the Consumer Price Index for the San Francisco-Oakland-Hayward, CA (CPI). If the change in the Consumer Price Index is negative, no Rent Increase is permitted.

Beginning August 1, 2024, there will be a fee of $286 per unit. Registration is complete only when all required information has been provided to the City and all outstanding fees, have been paid.

 All registration fees can be submitted on the Rental Stabilization Portal.

Owners or landlords may raise tenants’ rent once every 12 months, but not more than the City's annual rent increase limitation. The allowable rent increase will be announced no later than August 1st each year and shall be effective as of September 1st of that year.

Yes. The owner must give notices of rent increase to the tenant in the language that the owner and tenant used to negotiate the terms of the tenancy (e.g., English, Spanish, Chinese) as well as English.

The amount of time required to notify the tenant is outlined in California Civil Code 827.

We ask that questions and comments be directed to the following email address, rent@hmbcity.com

The per unit fee will cover costs such as the following: registration portal operations, maintaining a database for rental properties, enforcing registration rules, doing outreach and education, resolving conflicts, and other related services decided by the City. User fees were determined with these expected expenses.

Information regarding rent stabilization, residential rental registration and related items can be found at www.hmbcity.com/housing.