Effective March 1, 2010 through February 28, 2011, the allowable annual increase amount is 0.1%. In accordance with Rules and Regulations Section 1.12, this amount is based on 60% of the percentage increase in the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-San Jose region for the 12-month period ending October 31, which was 0.1% as posted in November 2009 by the Bureau of Labor Statistics.
Although 60% of 0.1% is 0.06%, Section 1.12 provides as follows: "In determining the allowable percentage rent increase, numbers of .04 and below
shall be rounded down to the nearest tenth decimal place, and numbers of .05 and above shall be rounded up to the nearest tenth decimal place." Thus, 0.06% rounded up to the nearest tenth decimal place is 0.1%.
To calculate the dollar amount of this annual rent increase, multiply the tenant's base rent by .001. For example, if the tenant's base rent is $1,250.00, the annual increase would be calculated as follows: $1,250.00 x .001 = $1.25. The tenant's new base rent would be $1,251.25 ($1,250.00 + $1.25 =
$1,251.25).
Last updated: 12/8/2009 4:26:51 PM
