(2) Before January 1, 1999, no landlord may set an initial rent level except upon
the occurrence of a voluntary vacancy, abandonment, or an eviction for non-payment of
rent, and an initial rent level may be set at an amount no greater than:
(a) Fifteen percent (15%) more than the rent in effect for the
immediately preceding tenancy, or
(b) Seventy percent (70%) of the prevailing market rents in effect at the
time of the beginning of the new tenancy for comparable units as established by HUD
Fair Market Rents (FMRs) or,
(c) The lawful rent ceiling.
(d) Fifteen percent (15%) more than the rent in effect for the
immediately preceding tenancy plus increases in the lawful rent ceiling for which the
landlord became eligible but which were not implemented because the tenancy ended
in December and the new tenancy began in January of the following year.
(3) As used in this subsection, the term “rent in effect” shall mean the last
rent actually paid by the last tenant to occupy the unit and pay rent.
(4) The rent increases authorized by subsection (B)(2) shall not occur more
than twice for any unit between January 1, 1996 and December 31, 1998. Where the
initial rent imposed by a landlord on or after January 1, 1996 is no more than the rent in
effect for the immediately preceding tenancy, the initial rent shall not count as one of
the two increases authorized by this subsection. Nothing contained herein negates the
obligation contained in Subsection (K) of this Regulation to register all new tenancies
which commence after January 1, 1996.
(C) Single Family Residences