Rent
Stabilization
Program
TOWN OF FAIRFAX
Purpose
Discuss partial implementation of
rent stabilization program
Consider resolution to initiate the
rent stabilization program
Consider introduction of an
ordinance to establish $1,000 fee
for a hearing process
Rent Stabilization Ordinance
Applies to:
•Apartment units built prior to
1995
•Detached accessory dwelling
units (ADUs) built prior to 1995
Does not apply to:
•Apartments built after 1995
•Single Family Homes
• Condominiums
•Attached ADUs
•Single rooms within a home
(occupied by the owner)
Allowable Rent Increases
Can the rent increase? Yes
1. New tenancy
Base rent established on first month’s rent
Subsequent rent increases limited to AGA
2. Annual Gross Adjustment (AGA)
Based on the increase in the Consumer Price Index (CPI) each year Calculated in April based on the March CPI
Sept. 1, 2023 to August 31, 2024 – AGA is 2.52% (60% of CPI of 4.2%) Sept.1, 2024 – AGA will be 75% of CPI.
Goes into effect September 1 of each year
Requires that the housing provider request the increase
3. Petition process
Partial Implementation
Purpose
Initiate program at low cost
prior to November vote
Key Features
No registration fees
$1,000 to file a petition
Key Components
“Warm-line” for inquiries
Limited registration
Petition process utilizing a
hearing examiner
Partial
Implementation
In-house Public Outreach
“Warm-line” for landlords and tenants
One-quarter to one-half of the Housing
Specialist time
Produce articles for the Town Newsletter and
Website
Housing Specialist was previously budgeted
in the FY 23/24 Town Budget
Partial
Implementation
Petition process
Hearing examiner process
An attorney with experience providing
rental hearings has been identified
3-4 hours of time for hearing
Fee of $1,000 to cover cost of hearing
Staff would serve in a support role (not
be covered under the $1,000 fee)
Seeks balance between:
Protect tenant from excessive rent
increase; and
Ensure fair rate of return for housing
provider
Partial Implementation
Limited registration
As-needed, paper based
Register residential units that are subject of
a petition
No registration fee would be charged
General Fund expense for managing the
files
Advantages and Disadvantages
Primary Advantages:
Quick start-up.
Low-cost implementation
experience prior to Fall vote.
No cost for most housing providers.
Low cost for hearings (only
needed to exceed AGA).
Primary Disadvantages:
Low compliance rate.
No registration system.
Cumbersome paper-based
system.
Alternatives /
Future
Enhancements
• Needed to fully implement program
• In-house or consultant help
Additional Staff
• Customer Relationship Management
(CRM) system
• Direct web-based registration system
• Specialized software designed for rent
stabilization programs are available
Technology
Recommended Actions
Discuss and receive
public comment
•Sets April 5, 2024 for partial implementation.
•Establishes hearing process for rent increases above AGA. •Simple introductory registration system (paper-based). •Informational telephone line.
Adopt resolution
•Interim petition fee of $1000 to be paid by landlords for rent increase above the allowed amount (AGA) or if a tenant objects to rent increase.
Waive first reading
and introduce
ordinance
Questions