Local code · San Francisco

San Francisco — Rent Increases & Passthroughs

Q: What if the increase seems miscalculated or not properly noticed?

Any increase that doesn’t comply with § 37.3(b) “shall be null and void.” Tenants can petition the Rent Board for relief and the landlord must prove calculations for certain passthroughs. See § 37.3(b)(5) and § 37.8 .

Q: Are there limits on O&M expense increases?

Yes. Certified O&M increases are capped at 7% , and they require a petition and Board determination. The O&M portion must be identified in the notice under § 37.3(b)(2) .

The San Francisco Rent Increases & Passthroughs, explained in plain English with the controlling citations.

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Last reviewed: July 6, 2026

Overview

This page explains the allowable rent increases and passthroughs for covered rental units under San Francisco’s Residential Rent Stabilization and Arbitration Ordinance, San Francisco Administrative Code Chapter 37 (the “Rent Ordinance”). It focuses on what landlords may add to rent, when a petition is required, how increases must be noticed, and which charges are expressly excluded from “rent.” For broader context on how Chapter 37 fits into the City’s regulatory framework, see the San Francisco Rent Ordinance and the San Francisco Administrative Code.

The most important rule of thumb: if an increase or passthrough isn’t authorized (or is miscalculated or improperly noticed) under § 37.3 or § 37.7, it’s void — tenants don’t have to pay it, and they may challenge it at the Rent Board.

What the Rent Ordinance allows

Annual allowable increase (baseline CPI increase)

The Ordinance authorizes an annual rent increase for tenants in occupancy; the Rent Board sets the percentage each year under § 37.3(a)(1)–(2). The notice must clearly label which portion of the increase is the annual allowable amount.
The City’s findings reflect that the annual rate is tied to inflation (60% of CPI without a floor), but the operative percentage is implemented annually by the Rent Board, not hard-coded in Chapter 37. See § 37.1(c) for the historical CPI linkage. Verify the current year’s percentage with the Rent Board.

Banked increases (unused annual percentages)

A landlord who “refrains from imposing an annual rent increase or any portion thereof may accumulate” that amount and later impose it, subject to Chapter 37’s limits, under § 37.3(a)(2). Any notice must itemize what portion is banked.

Capital improvement passthroughs (petition required)

Rent increases for qualifying improvements require cost certification under § 37.7; in general, costs are amortized on a straight-line basis and may be passed through to benefiting tenants. For improvements required by law, costs are amortized over 20 years, and up to 100% of certified costs may be passed through, subject to a cap of 10% of base rent per 12 months (or $30, whichever is greater); unused amounts may be accumulated and imposed in subsequent years, still subject to the cap. See § 37.7(c)(3).
For other work on properties with five units or fewer, amortization periods vary by improvement type: 10, 15, or 20 years (Schedule I–III), with examples such as new roofs, windows, security systems, appliances, and common-area finishes listed in § 37.7(c)(4).

Operating & Maintenance (O&M) expense increases (petition required)

O&M increases require a petition and Rent Board determination. The notice must identify the O&M portion and the certified amount. O&M increases “shall not exceed 7%” (cap stated in § 37.3(b)(2)); challenges and certifications are handled through § 37.8 arbitration procedures.

Utilities and water-related passthroughs

Utilities: The Ordinance authorizes increases based on utility costs under § 37.3(a)(4), and also clarifies that certain utility-related passthroughs do not constitute “rent increases” under § 37.2(q).
Excess water use penalties and specified water bond-related charges: A landlord may pass through up to 50% of excess-use charges if the building meets required low-flow/retrofit and leak standards; only penalties for service periods starting after April 20, 1991, may be passed through, and such charges are prorated (and do not become base rent). See § 37.3(a)(5)(A). Water revenue bond rate increases authorized at the November 2002 election may be passed through under § 37.3(a)(5)(B).

General obligation (GO) bond property-tax passthroughs

A landlord may pass through the portion of property taxes attributable to voter-approved GO bonds, with standardized calculations and required tenant forms; hardship relief may be available to tenants. See § 37.3(a)(6) for calculation, notice, filing timelines, and tenant remedies, including the requirement that the landlord provide the Board’s calculation form with the rent increase notice.

Lead hazard remediation costs (combined cap)

For costs to remediate lead hazards (as defined by the Health Code), landlords may seek increases based on O&M and/or capital improvement expenditures, but the combined increase “shall not exceed 10% in any 12-month period”; excess may be accumulated and imposed later, still subject to the 10% annual cap. See § 37.3(a)(9).

Special tenancy situations (tenant-based rental assistance; added occupants)

Tenant-based rental assistance: For voucher and similar programs, how the rent limits apply depends on whether the tenant’s “share” is a fixed percentage of income and whether the “base rent” is above or below the payment standard; in some cases Chapter 37 limits apply to the entire base rent; in others, program rules control. See § 37.3(a)(10).
Added occupants: A landlord may not impose a rent increase “solely because a tenant has added an additional occupant,” including a newborn or family member, per § 37.3(a)(11).

What is (and is not) “rent” for these purposes

“Rent increases” include added money demanded for rent or reduced services without a corresponding price reduction. But specific passthroughs — utility cost increases paid by the landlord, GO bond property-tax changes, and certain water bond-related increases — “do not constitute rent increases” under § 37.2(q) and thus do not become part of base rent.
“Base rent” excludes increases imposed pursuant to § 37.7 (capital improvements), per § 37.2(a)(1)(A).

Notice content and validity

Before giving a rent increase, the landlord must give written notice that itemizes:
- which portion is the annual allowable and/or banked amount (§ 37.3(b)(1)), and
- which portion reflects O&M, comparable rents, or capital improvements (with the note that any O&M-certified increase cannot exceed 7%) (§ 37.3(b)(2)), and
- which portion is a utility passthrough, water bond passthrough, or GO bond passthrough (with Board-provided worksheets) (§ 37.3(b)(3)), and
- which portion amortizes a RAP loan (§ 37.3(b)(4)).
  Any nonconforming rent increase “shall be null and void” (§ 37.3(b)(5)).

Petitions, forms, and Board process

Capital Improvements: file a petition; Rent Board forms distinguish buildings with 1–5 units and 6+ units; seismic/mandated work may require an attachment. See forms 526/527/528 (administering § 37.7).
Operating & Maintenance: file Form 530 (administering § 37.8(e)), subject to the 7% cap recognized in § 37.3(b)(2).
Utility passthroughs: Form 533 (utility increases administered per § 37.2(q) and Board rules).
Tenant challenges: Tenants may petition for a hearing under § 37.8 to contest overcharges, miscalculations, or hardship claims tied to GO bond passthroughs; the landlord bears the burden to prove calculations for GO bond passthroughs.

Registration, licensing, and compliance

Chapter 37 contains reporting and licensing provisions at § 37.15 (Reporting Obligations; Licensing). Because compliance can affect a landlord’s ability to impose increases, confirm current Rent Board registration/licensing steps before noticing any change. Verify with the jurisdiction.
For program-specific or building-service changes (including potential service impacts from an ADU project), tenants and owners may seek determinations and rent adjustments under Chapter 37; see § 37.2(r) for housing service severance and ADU-related petition language.

Allowed rent increases & passthroughs at a glance

Mechanism	Key limits	Process	Code Reference
Annual allowable increase	Set annually by Rent Board; must be itemized in notice	Landlord notice; no petition	§ 37.3(a)(1)–(2); § 37.3(b)(1)
Banking unused annual %	Accumulate unused annual percentages	Landlord notice; itemize banked amount	§ 37.3(a)(2)
Capital improvements	Up to 100% of certified costs; ≤10% of base rent/year (or $30), amortization periods apply	Petition; cost certification	§ 37.7(c)(3)–(4)
O&M expense increase	Certified O&M increase ≤7%	Petition; Board determination	§ 37.3(b)(2); § 37.8
Utilities passthrough	Authorized; certain utility passthroughs not “rent increases”	Petition/form as applicable	§ 37.3(a)(4); § 37.2(q)
Water penalties/water bonds	Up to 50% penalty passthrough; separate water bond passthrough	Certification and required notice/forms	§ 37.3(a)(5)(A)–(B)
GO bond property-tax passthrough	Controller-based calc; hardship relief possible	Required worksheet to tenants; petitions to challenge	§ 37.3(a)(6)
Lead hazard remediation	Combined CI+O&M increases ≤10%/12 months	Petition/certification; accumulation allowed	§ 37.3(a)(9)

Practical notes and cross-references

Illegal or mis-noticed increases are “null and void” under § 37.3(b)(5); tenants can seek relief through § 37.8. Consider the interplay with Evictions & Just Cause before taking action based on nonpayment of a disputed increase.
GO bond and some utility passthroughs require the landlord to provide Board worksheets with the notice; tenant hardship relief for GO bond passthroughs is available per § 37.3(a)(6).
For lead-related work, definitions and health standards live in the San Francisco Housing Code; rent increase mechanisms for those costs are limited by § 37.3(a)(9).
Chapter 37 sits alongside the Planning and Building frameworks but is separate from zoning or design approvals. For physical work that may trigger a capital improvement petition, see San Francisco Permits & Forms as you plan scope and documentation.

Checklist

Confirm the unit is subject to Chapter 37 coverage. Verify with the Rent Board if uncertain. Not found in retrieved materials (coverage criteria).
Identify the increase type: annual allowable, banked, O&M, capital improvement, utility/water, GO bond, RAP loan, or lead remediation. Cite the correct subsection of § 37.3 or § 37.7 in your files.
For petitioned items (CI, O&M, utilities as applicable), prepare and file the correct Rent Board form (e.g., 526/527/528; 530; 533) and supporting proofs.
Draft the tenant notice. Itemize each portion of the increase and attach any required Board worksheets (e.g., GO bond, water/utility). Ensure the notice satisfies § 37.3(b)(1)–(4).
Confirm compliance with Chapter 37 registration/licensing requirements at § 37.15 (Housing Inventory/Rent Board processes). Verify with the Rent Board.
For lead remediation or seismic/legal mandates converted into CI or O&M claims, confirm caps and amortization periods before calculating tenant shares. § 37.3(a)(9); § 37.7(c).
Keep calculation worksheets and source bills; the landlord bears the burden to prove accuracy for certain passthroughs if challenged under § 37.8.

Risks & Ambiguities

Issue	Why it matters	What to verify
Current annual allowable percentage	The CPI-based percentage changes yearly and isn’t hard-coded in the Ordinance	Check the Rent Board’s published schedule; the findings at § 37.1(c) are historical context, not the operative number.
Registration/licensing before increases	Chapter 37 references reporting and licensing at § 37.15; noncompliance can affect validity of increases	Confirm your Housing Inventory and any required “rent increase license” steps with the Rent Board. Verify with the jurisdiction.
O&M methodology	The 7% cap is explicit, but how to compute eligible O&M changes requires a petition record	Review Board guidance and § 37.8 arbitration rules when preparing Form 530.
Water/GO bond passthrough math	Requires standardized worksheets and tenant copies	Use Board forms; tenant may challenge; landlord must prove accuracy under § 37.3(a)(6).
Lead remediation cap stacking	CI and O&M claims for lead costs combine toward a single 10%/12-month cap	Model both streams together per § 37.3(a)(9) before noticing.
Additional occupants	Increases solely due to added lawful occupants are prohibited	Don’t include an “extra person” surcharge; see § 37.3(a)(11).
Whether a charge is “rent”	Some passthroughs aren’t “rent increases” and don’t become base rent	Classify correctly under § 37.2(q) to avoid compounding errors.
State-law interplay	Some tenancies may be affected by state rent caps or notice timing	See California housing laws; confirm if state caps or notices alter your approach. Not found in retrieved materials (Ordinance text on this interplay).

Plain-English Summary

San Francisco’s Rent Ordinance lets landlords raise rent in a few, specific ways: the yearly inflation-based increase; banked (unused) portions of prior yearly increases; and Board-approved “passthroughs” for operating costs, capital improvements, certain utilities, and voter-approved bond charges. Each path has strict caps, required calculations, and notice rules. If a step is missed or math is wrong, the increase is void and tenants can challenge it.

Source References

San Francisco Administrative Code, Residential Rent Stabilization and Arbitration Ordinance, Title and findings; historical CPI linkage: § 37.1(c)
Definitions of “base rent” and “rent increases” (including exclusions for specified passthroughs): § 37.2(a)(1)(A); § 37.2(q)
Allowable rent increases; banking; utilities; water penalties/water revenue bonds; GO bond passthroughs; RAP loans; lead remediation; tenant-based assistance; additional occupants; notice content and validity: § 37.3(a)(2)–(11); § 37.3(b)(1)–(6)
Capital improvement passthroughs; amortization schedules and caps: § 37.7(c)(3)–(4)
Petitions and tenant challenges (arbitration procedures referenced in Chapter 37): § 37.8 (as referenced in § 37.3(a)(6) and § 37.3(b))
Reporting obligations; licensing: § 37.15 (heading)
Rent Board forms (Capital Improvements 1–5 units: Form 526; 6+ units: Form 527; Seismic: Form 528; O&M: Form 530; Utility Passthrough: Form 533): Rent Board Forms Center references

Sources

Retrieved passages

San Francisco Zoning Code (§37.3) High relevance
San Francisco Zoning Code (§37.3) High relevance
San Francisco Zoning Code (§37.3) High relevance
San Francisco Zoning Code (Section 37.8) High relevance
San Francisco Zoning Code (§37.9) High relevance
San Francisco Zoning Code (§37.3) High relevance
San Francisco Zoning Code (§37.3) High relevance
San Francisco Zoning Code (Section 37.7) High relevance

Cited sections

San Francisco Administrative Code, Residential Rent Stabilization and Arbitration Ordinance, Title and findings; historical CPI linkage: § 37.1(c) (Title and)
Definitions of “base rent” and “rent increases” (including exclusions for specified passthroughs): § 37.2(a)(1)(A); § 37.2(q) (§ 37.2)
Allowable rent increases; banking; utilities; water penalties/water revenue bonds; GO bond passthroughs; RAP loans; lead remediation; tenant-based assistance; additional occupants; notice content and validity: § 37.3(a)(2)–(11); § 37.3(b)(1)–(6) (§ 37.3)
Capital improvement passthroughs; amortization schedules and caps: § 37.7(c)(3)–(4) (§ 37.7)
Petitions and tenant challenges (arbitration procedures referenced in Chapter 37): § 37.8 (as referenced in § 37.3(a)(6) and § 37.3(b)) (Chapter 37)
Reporting obligations; licensing: § 37.15 (heading) (§ 37.15)
Rent Board forms (Capital Improvements 1–5 units: Form 526; 6+ units: Form 527; Seismic: Form 528; O&M: Form 530; Utility Passthrough: Form 533): Rent Board Forms Center references
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Frequently asked questions

How much can a landlord raise my rent this year in San Francisco?

The annual allowable increase is set each year by the Rent Board under § 37.3(a)(1)–(2) and must be itemized in your notice as the “annual” portion. The specific percentage is not fixed in the code; check the Rent Board’s current schedule.

Can my landlord add on past “missed” increases later?

Yes. Unused annual increases may be “banked” and later imposed, but they must be clearly itemized in the notice and remain subject to Chapter 37’s limits under § 37.3(a)(2).

What is required for a capital improvement rent increase?

Capital improvement costs must be certified through a Rent Board petition under § 37.7. For work required by law, costs are amortized over 20 years, with up to 100% passed through, capped at 10% of base rent/year (or $30 minimum), with carryover allowed.

Are utility surcharges part of my “rent” for future increases?

Certain utility and bond-related passthroughs are not considered “rent increases” and do not become part of base rent under § 37.2(q), even though you may be billed for them. Your notice must break these out separately per § 37.3(b).

Can my landlord raise rent because I added a roommate or had a baby?

No. An increase “solely” due to adding an additional occupant (including a newborn or family member) is prohibited by § 37.3(a)(11).

What if the increase seems miscalculated or not properly noticed?

Any increase that doesn’t comply with § 37.3(b) “shall be null and void.” Tenants can petition the Rent Board for relief and the landlord must prove calculations for certain passthroughs. See § 37.3(b)(5) and § 37.8.

Are there limits on O&M expense increases?

Yes. Certified O&M increases are capped at 7%, and they require a petition and Board determination. The O&M portion must be identified in the notice under § 37.3(b)(2).

Can costs for lead paint remediation be passed through?

Yes, but combined O&M and capital improvement increases for lead remediation “shall not exceed 10% in any 12-month period,” with excess amounts carried over. See § 37.3(a)(9). ---

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