I recently had the opportunity as part of my work for California Rural Legal Assistance to help all of the 80 families living in a Low Income Housing Tax Credit apartment complex in Sonoma County save $200 a month in rent for the rest of this year and get a month’s rent credit.
Our client lives in an 80 unit LIHTC property. The management company increased rent in March 2020 and January 2021 in violation of Penal Code ยง 396, which limits total rent increase since declaration of state of emergency to 10%.
We wrote management company a letter pointing out that a state of emergency has been in effect continuously since October 2017 and was extended again in December 2020, through the end of December 2021. Because the March 1, 2020 rent increase raised the rent by 20% over the 2017 rent, and the January 1, 2021 rent increase raised the rent by 30% over the 2017 rent, both of these rent increases were illegal.
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The other 79 tenant families in the complex received the same letter reducing their rent and crediting their overpayments. Total benefit to all 80 families in the complex is estimated to be $271,200.