1113. 1991 Inflation Adjustment Order
(1) The purpose of this regulation is to comply with the principles set forth in
Searle v. City of Berkeley Rent Stabilization Board, Court of Appeal No. 638429-8 (July
18, 1990) and to restore to owners of Berkeley rental property erosion of their net
operating incomes caused by inflation, without requiring each owner to file and pursue
an individual petition, while at the same time protecting tenants, particularly low-income
tenants, from unnecessarily high rent increases.
(2) In accordance with the Rent Stabilization and Eviction for Good Cause
Ordinance as amended by the Tenants Rights Amendments Act of 1982 and the
purposes stated in subsection (A), the Rent Stabilization Board hereby adjusts the 1991
rent ceilings (exclusive of temporary increases in rent ceilings such as capital
improvements and exclusive of increases under Regulation 1280) upward by an amount
calculated as follows, for all units covered by the Ordinance. The increase amount shall
be the May 31, 1980 lawful rent ceiling, multiplied by .45, provided that:
(a) The amount shall be reduced to avoid double-counting resulting
from any rent increase previously approved to increase net operating income based on
the Consumer Price Index under Regulation 1264, and shall be further adjusted to take
account of any changes which such a Regulation 1264 increase caused in the amount
of rent adjustments occurring after the Regulation 1264 increase; and
(b) The increase shall be phased in as provided in Regulation 1274.