(a) Where an election has been made under § 42-3502.06(c) to seek a rent adjustment through a hardship petition, the Rent Administrator shall, after review of the figures and computations set forth in the housing provider’s petition, allow additional increases in rent which would generate no more than a 12% rate of return computed according to subsection (b) of this section.
(b) In determining the rate of return for each housing accommodation, the following formula, computed over a base period of the 12 consecutive months within 15 months preceding the filing of a petition under this chapter, shall be used to:
(1) Obtain the net income by subtracting from the sum of maximum possible rental income which can be derived from a housing accommodation to which this section applies and the maximum amount of all other income which can be derived from the housing accommodation the following:
(A) The operating expenses, but the following items shall not be allowed as operating expenses:
(i) Membership fees in organizations established to influence legislation and regulations;
(ii) Contributions to lobbying efforts;
(iii) Contributions for legal fees in the prosecution of class action cases;
(iv) Political contributions to candidates for office;
(v) Mortgage principal payments;
(vi) Maintenance expenses for which the housing provider has been reimbursed by any security deposit, insurance settlement, judgment for damages, agreed upon payments, or any other method;
(vii) Attorney’s fees charged for services connected with counseling or litigation related to actions brought by the District government due to the housing provider’s repeated failure to comply with applicable housing regulations as evidenced by violation notices issued by the Department of Buildings; and