Section 8 and Shelter Plus Care Landlords May Now Raise Rent Ceilings to Allowable Maximum Contract Rent

Measure BB brought many Section 8 and Shelter Plus Care rental units under Rent Ordinance coverage for the first time. Rental units that are fully covered by the Rent Ordinance have a rent ceiling. A new regulation adopted by the Elected Rent Board allows qualifying landlords to petition the Rent Board to raise the rent ceilings for their Section 8 and Shelter Plus Care rental units to the maximum contract rent permitted by the administering government agency.  

Tenant Rent Portion Remains Unchanged 

Because tenants participating in the Section 8 and Shelter Plus Care programs pay a set portion of their income in rent, and the administering government agency supplies the remainder of the contract rent to the landlord, adopting this regulation to allow rent ceiling increases does not affect tenants’ rent portion. This regulation ensures that landlords can receive the maximum contract rent available to them and are not disincentivized from participating in Section 8 and Shelter Plus Care programs. 

Requirements for Granting Petition 

To increase the rent ceiling of fully covered Section 8 and Shelter Plus Care rental units, the Rent Board must find that: 

1. The subsidizing agency has issued or will issue a reasonableness determination approving the rent increase. 
2. Increasing the rent ceiling will not increase the tenant’s share of the contract rent, unless for reasons unrelated to this regulation. 
3. The rental unit is in compliance with local, state, and federal habitability standards 
4. The landlord is in full compliance with the Rent Ordinance requirements for registration. 
5. The tenant has not brought a civil action against the landlord for violating the Tenant Protection Ordinance. 

For more information about the petition process, please visit our Landlord Individual Rent Adjustment Petition webpage.