Partial Exemption for Newly Constructed Rental Units

In general, residential units first constructed after June 13, 1979 and units that have obtained a Rent Board determination of substantial rehabilitation are exempt from the rent increase limitations (but not the just cause eviction provisions) of the San Francisco Rent Ordinance.

The partial exemption for new construction only applies if (a) the first Certificate of Occupancy for the unit was issued after June 13, 1979, and (b) there was no residential use of the unit prior to the issuance of the Certificate of Occupancy. If the unit is a live/work unit, there is an additional requirement that (c) there was no residential occupancy in the building (not just the individual unit) between June 13, 1979 and the date of issuance of the Certificate of Occupancy.

Please note that even if a unit is exempt from local rent controls, it may be covered by the California Tenant Protection Act), which limits annual rent increases to no more than 5% plus the percentage increase in the local CPI.

Tags: Topic 020

Last updated November 9, 2022

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