A landlord must own the dwelling at least twelve (12) months to apply for a hardship surcharge.
Whenever a landlord shall determine that the net operating expenses exceed 60% of the gross total income, i.e. net operating income (NOI), during the course of the previous twelve (12) month period, he may apply for a hardship surcharge.
Presuming that the rent(s) charged in the three (3) year base period yielded a fair net operating income, the operating expenses cannot have exceeded 60% of the gross income, including any surcharges, for any of the prior three (3) years.
The landlord must apply for a hardship surcharge on forms provided by the Division. Tenants must receive a copy of this form from the landlord either by personal service or by certified mail. The Division of Rent Leveling must receive all documentation required by Ordinance.
Substantial compliance certification and zoning compliance certification must be obtained by the landlord no more than sixty (60) days before filing of the hardship application, and must be filed with the application.
Calculation of the hardship surcharge:
Residential dwellings only:
Charged to a tenant based on his share of the total square footage in the building.
Mixed residential-commercial use:
The tenants will pay the proportionate share, as the net income derived from the residential units bears to the total income derived from the property. Once that ratio is achieved, the tenants then pay their portion of the total square of residential space.
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