Exhibit 2
Cities What costs are eligible? Property Size Share of Expense Costs
Qualifying Expenses (Qualifying
Criteria)
Useful Life/Amortization Period Max % Increase
Culver City
Aug 13, 2019
Code Compliance, Health & Safety, Electrical &
Plumbing
No distinction 50% of costs Substantial improvements to, but not replacement of building amenities
> 5 years useful life
Amortization period can be extended to repay
50% of capital improvement costs
3% max rent increase per year
Amortization period can be
extended
Hayward
July 25, 2019
Earthquake & Energy Efficiency No distinction 50% of costs Adds value to the property, extends the life of the property, benefits the tenants,
helps with earthquake safety and energy
efficiency
5 years (60 months)
Amortization periodcan be extended to repay
50% of capital improvement costs
10%, including AGA or 30% in five
years, Amortization period can be
extended
Mountain View
December 23, 2016
Seismic Retrofits, New Plumbing,
Electrical, Heating, Ventilation, or Air
Conditioning
Preventing Pest Damage, Water and
Electricity Efficiency Upgrades
1 to 5 units 90% of costs Benefit tenant primarily > 5 years useful life Amortization period can be extended to repay
90% of capital improvement costs
5% max rent rent increase,
otherwise
the amortization
period can be extend
6 to 20 units 75% of costs Amortization period can be extended to repay 75% of capital improvement costs
21+ units 50% of costs Amortization period can be extended to repay 50% of capital improvement costs
Alameda
March 31, 2016
Seismic Retrofits, New Plumbing, Electrical,
Heating, Ventilation, or Air Conditioning
Preventing Pest Damage, Water and Electricity
Efficiency Upgrades
No distinction 100% of costs Materially adds value to the property Appreciably prolongs the useful life of
the property. Has a useful life of more
than one year. Has a documented cost
that is not less than:
Capital Improvement cost ≥ (8 X Rent) X
(# of rental units improved)
15 years useful life
Amortization period can be extended to repay
100% of capital improvement costs
Allowed above Annual General
Adjustment max of 5% with petition
to Program Administrator
Richmond
February 25, 2016
Structural Repair, Health & Safety, Appliances No distinction 100% of costs Materially adds value, extends useful life,
has a useful life of more than one year
and a direct cost of $250.00 or more per
unit affected
Each capital improvement category has an
amortization period from 5 to 20 years
Amortization period can be extended to repay
100% of capital improvement costs
15% of the Maximum Allowable Rent
on the date the petition is filed,
amortization period can be extended
East Palo Alto
2010
Code Compliance, Health & Safety No Distinction 100% of costs Improvement must cost 10 X (the monthly rent) X (# of improved units)
Amortization period can be extended to repay
100% of capital improvement costs
No rent increase above 10% a year
plus Annual General Adjustment
Los Gatos
March 1, 2004
All capital improvement categories eligible No Distinction 100% of costs Costs proposed for passthrough to Tenants bears a reasonable relationship
to the
purpose for which such cost was
incurred and the value of the real
> 5 years useful life
Amortized over improvements useful life
No max rent increase
Oakland
1980
All capital improvement categories eligible No Distinction 70% of cost Improvements to the property that benefit the tenants
Amortized over improvements useful life 3 X General Annual Adjustment San Jose
September 7, 1979
ADA Accessibility, Sustainability or Seismic
Readiness, Fire Prevention, Security
No Distinction 100% of costs Provide new Housing Services or enhanced Housing Service functionality
to the Tenants; increase the safety,
water and electricity efficiency, or
seismic readiness
7 to 20 years useful life
Amortized over improvements useful life
3% max rent increase per year
San Francisco
June 13, 1979
Health & Safety, Accessability, Foundation and
Structure Upgrade
1 to 5 100% of costs Materially adds to the value of the property
Appreciably prolongs its useful life, or
adapts it to new uses
10 to 20 years useful life
Amortization period can be extended to repay
100% of capital improvement costs
10% max rent increase
6 and above
50% of costs 7 to 10 years useful life
Amortization period can be extended to repay
50% of capital improvement costs
Exhibit 2