Capital Improvement Plans - Policy Update
Background
The City of Alameda has had a Capital Improvement Plan (CIP) Policy in effect since 2016, allowing landlords to submit proof of qualifying improvements and pass the costs through to tenants. The policy predates the current Rent Ordinance and has seen only a few applications approved since its adoption.
See comparison below between the current regulations and staff’s proposed updates:
Existing CIP Regulations Proposed Option A
CAP ON CIP AMOUNT
None
• Initial Calculation of monthly
CIP Pass through capped at 5%
of current rent
• Combination of annual rent
increase (AGA + banking) + CIP
pass through capped at 8%
LOW INCOME HARDSHIP
EXEMPTION
None
Yes, available if a tenant either:
• Is a recipient of means-tested
public assistance (such as SSI,
GA, TANF, or CalWORKS), or
• Has gross income less than 80%
of Area Median Income
COST RECOVERY % BASED
ON # OF RENTAL UNITS
All properties = 100%
• 2-4 Units = 100%
• 5-15 Units = 100% for seismic
improvements, 75% for all others
• 16-24 Units = 100% for seismic
improvements, 50% for all others
• 25+ Units = Not eligible
QUALIFYING
IMPROVEMENTS
• New roof
• Upgraded foundation, including
seismic retrofits.
• New plumbing, electrical or
HVAC for entire building
• Addressing a wood-destroying
pest report
• Water-conservation devices
• Meeting or exceeding
disability/accessibility standards
Expand qualifying improvements to
include:
• Energy-saving improvements
• Fire suppression systems
• Stair/railing improvements
• Plumbing, electrical or HVAC
for less than entire building
COST THRESHOLD Formula based on average rents,
resulting in very large thresholds: A
5-unit building with average rent of
$2,500 would require at least
$100,000 of improvements to qualify
Reduced to $10,000 overall or
$1,000 per unit, whichever is greater
CIP INCREASE TREATED AS
PASS THROUGH?
Yes, per Rent Control Regulation
23-01 Yes, codified in new ordinance