When Richmond voters adopted Richmond Fair Rent, Just Cause for Eviction and Homeowner Protection Ordinance (Rent Control and Just Cause), one of the stated objectives was to put the brakes on unjustified rent increases, although there was no evidence that this was happening. To a renter with economic challenges, any increase can be a challenge and may seem unjustified.

One of the provisions of the ordinance is for the Rent Board to set an allowable annual increase that is deemed “fair.” It is ironic that the typical annual allowable increases are higher than the increases in the actual rent marketplace! You can see from the chart below that rents have actually decreased in Richmond while the rates allowed by the Rent Board continue to increase.

Source: https://www.rentcafe.com/average-rent-market-trends/us/ca/richmond/

Other unintended adverse consequences of the Richmond Fair Rent, Just Cause for Eviction and Homeowner Protection Ordinance include;

• The number of rental units available in Richmond has actually decreased, as owners sell off previously rented single-family homes to avoid the draconian impacts of Rent Control and Just Cause.
• The construction of new rental units in Richmond is at a standstill because developers are leery of Rent Control and Just Cause.
• The Rent Program has built up a multimillion-dollar bureaucracy supported by landlords who get no benefit from it.
• One of the chief authors of the Rent Control and Just Cause, Councilmember Claudia Jimenez, violated its requirements when she rented out her own home.
• The screening requirements landlords use to approve or decline tenant applications has increased dramatically because of fear that the “just cause’ part of the ordinance will bar their ability to evict a bad tenant. This is particularly damaging to people who have not held a steady job due to COVID or have actually been homeless, making it nearly impossible to find a place to rent in Richmond, even though they can afford it.

Rent Board Adopts 2022 Annual General Adjustment in the Amount of 5.2% for Tenancies Commencing Prior to September 1, 2021

(Effective 09/01/2022)
 At their meeting on April 20, 2022, the Rent Board adopted Regulation 610, establishing the 2022 Annual General Adjustment (AGA) rent increase for Controlled Rental Units in the amount of 5.2%. Rent Increases for the 2022 Annual General Adjustment may not take effect prior to September 1, 2022.
The 2022 AGA may only be applied to tenancies in effect prior to September 1, 2021.
In addition, to apply the 2022 Annual General Adjustment rent increase of up to 5.2%, Landlords must comply with State law requirements and file a notice of rent increase with the Rent Board within ten (10) business days after service on the Tenant, in accordance with the Rent Increase Procedure on the Rent Program website (www.richmondrent.org).
 Visit www.richmondrent.org/increase to access resources such as a notice of rent increase template, Maximum Allowable Rent Calculator, and more. 
What's the Annual General Adjustment?
 
 The Annual General Adjustment (AGA) is an annual rent increase for Controlled Rental Units permitted by the Richmond Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance. The Annual General Adjustment is calculated based on the percentage change in the Consumer Price Index of the Bay Area, which includes San Francisco, Oakland, and San Jose.
 
Are Landlords Allowed to "Bank" Annual General Adjustment Rent Increases? 
 
Pursuant to Rent Board Regulation 602, in the event that a current year’s Annual General Adjustment exceeds five percent (5.0%), a Landlord may not apply any deferred Annual General Adjustment increases until the next Annual General Adjustment increase less than five percent (5.0%) is effective.   Due to the fact that the 2022 Annual General Adjustment is above the 5% threshold, landlords will be unable to bank any deferred AGA increases until the AGA falls below 5%.
For more information about the Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance and Richmond Rent Program, please visit www.richmondrent.org.