Form 526 "Landlord Capital Improvement Petition for Properties With 1-5 Residential Units" - City and County of San Francisco, California

What Is Form 526?

This is a legal form that was released by the Rent Board - City and County of San Francisco, California - a government authority operating within California. The form may be used strictly within City and County of San Francisco. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on March 1, 2022;
  • The latest edition provided by the Rent Board - City and County of San Francisco, California;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form 526 by clicking the link below or browse more documents and templates provided by the Rent Board - City and County of San Francisco, California.

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Download Form 526 "Landlord Capital Improvement Petition for Properties With 1-5 Residential Units" - City and County of San Francisco, California

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San Francisco Residential Rent Stabilization and Arbitration Board
CHECKLIST FOR FILING
Capital Improvement Petition For Properties with 1-5 Residential Units
NOTE: Every item on this checklist must be completed and marked “YES” or your
petition will be considered incomplete and that could delay the hearing and decision.
YES
NO
1.
q
q
Have you confirmed that there are only 1-5 residential units, including “in-law” units, on the
property? If there are more than 5 residential units on the property, then you must use the
“Capital Improvement Petition for Properties With 6 or More Residential Units.”
q
q
2.
Have you provided a copy of the Capital Improvement Petition for each tenant listed,
as well as the original and one copy for the Rent Board? If more than one tenant
resides in the unit, you must provide a copy of the petition for each tenant. (Pages i-iv of
the petition do not need to be included in the copies provided for the tenants.)
q
q
3.
Have you completed Form I (Landlord Petition for Arbitration), Form II (the proposed
rent increases) and Schedule A (capital improvement lists for 10-year, 15-year and
20-year amortizations)?
q
q
4.
Does Schedule A provide adequate information for the tenants and the Administrative
Law Judge to determine what was done for the costs incurred?
5.
q
q
If using imputed interest, did you use the rate in effect at the time of filing this petition?
6.
q
q
Is there a contract and/or invoice for each claimed cost?
q
q
7.
Is there a cancelled check and/or receipt for each claimed cost?
q
q
8.
Are there two sets of copies of all supporting documentation (receipts, invoices, contracts,
copies of cancelled checks, photos, etc.)? (The landlord petitioner is not required
to provide copies of supporting documentation for the tenants.)
9.
q
q
If the petition requests certification of more than $25,000.00 in capital improvement costs,
for each capital improvement item in this petition did you submit copies of competitive bids
for work & materials OR copies of time & materials billings for work performed OR a check
in the amount of the applicable estimator fee?
Page i
526 CI Petition 1-5 Units 3/1/22
Printed on 100% post-consumer recycled paper
25 Van Ness Avenue #320
www.sfrb.org
Phone 415.252.4600
San Francisco, CA 94102-6033
rentboard@sfgov.org
San Francisco Residential Rent Stabilization and Arbitration Board
CHECKLIST FOR FILING
Capital Improvement Petition For Properties with 1-5 Residential Units
NOTE: Every item on this checklist must be completed and marked “YES” or your
petition will be considered incomplete and that could delay the hearing and decision.
YES
NO
1.
q
q
Have you confirmed that there are only 1-5 residential units, including “in-law” units, on the
property? If there are more than 5 residential units on the property, then you must use the
“Capital Improvement Petition for Properties With 6 or More Residential Units.”
q
q
2.
Have you provided a copy of the Capital Improvement Petition for each tenant listed,
as well as the original and one copy for the Rent Board? If more than one tenant
resides in the unit, you must provide a copy of the petition for each tenant. (Pages i-iv of
the petition do not need to be included in the copies provided for the tenants.)
q
q
3.
Have you completed Form I (Landlord Petition for Arbitration), Form II (the proposed
rent increases) and Schedule A (capital improvement lists for 10-year, 15-year and
20-year amortizations)?
q
q
4.
Does Schedule A provide adequate information for the tenants and the Administrative
Law Judge to determine what was done for the costs incurred?
5.
q
q
If using imputed interest, did you use the rate in effect at the time of filing this petition?
6.
q
q
Is there a contract and/or invoice for each claimed cost?
q
q
7.
Is there a cancelled check and/or receipt for each claimed cost?
q
q
8.
Are there two sets of copies of all supporting documentation (receipts, invoices, contracts,
copies of cancelled checks, photos, etc.)? (The landlord petitioner is not required
to provide copies of supporting documentation for the tenants.)
9.
q
q
If the petition requests certification of more than $25,000.00 in capital improvement costs,
for each capital improvement item in this petition did you submit copies of competitive bids
for work & materials OR copies of time & materials billings for work performed OR a check
in the amount of the applicable estimator fee?
Page i
526 CI Petition 1-5 Units 3/1/22
Printed on 100% post-consumer recycled paper
25 Van Ness Avenue #320
www.sfrb.org
Phone 415.252.4600
San Francisco, CA 94102-6033
rentboard@sfgov.org
San Francisco Residential Rent Stabilization and Arbitration Board
INSTRUCTIONS FOR FILING
Capital Improvement Petition For Properties with 1-5 Residential Units
1. A landlord’s petition for capital improvement certification must include the following:
(1) Landlord Petition for Arbitration, FORM I;
(2) Proposed Monthly Rent Increases, FORM II;
(3) Schedule A – Capital Improvements – 10-year, 15-year and 20-year amortizations, as applicable; and
(4) Documentation supporting the requested increase.
2. The petition must be completely filled out and signed by the landlord or the landlord’s authorized agent. The
petition must be assembled as noted on page iv, “Tips for Preparing a Capital Improvement Petition.” The Rent
Board staff is not permitted to complete or fill in the petition for you.
3. You must submit a copy of your completed petition for each tenant in the unit whose rent you propose to
increase, plus the original and one copy for the Rent Board. You must also submit two (2) copies of all relevant
documents (contracts, invoices, cancelled checks, receipts, etc.) to verify your claims. You do not need to
provide extra copies of the supporting documents for mailing to each tenant. At the hearing, you must be
prepared to clearly describe the nature of the work performed and explain the documents verifying the costs
claimed in the petition. All invoices must clearly state a specific dollar amount for each item of work performed. If
your petition and the supporting documentation are complete, clear and well-organized, you may be eligible for
a Minute Order (a decision issued within 14 days of the hearing). A full description of the Minute Order program
will be mailed to you with the Notice of Hearing.
4. If your petition requests certification of more than $25,000.00 in capital improvement costs, exclusive of interest,
for each capital improvement item listed in Schedule A you must provide copies of competitive bids received for
work and materials OR copies of time and materials billing for work performed by all contractors and
subcontractors OR you must pay the cost of an estimator hired by the Board. The Estimator Fee Schedule is set
forth on page iii and is based upon the cost of the work without interest. The fee must be paid at the time the
petition is filed. Make the check payable to the San Francisco Rent Board.
5. The cost of work required to correct a code violation for which a notice of violation was issued and remained
unabated for 90 days will not be certified unless the landlord made timely good faith efforts to do the work within
that 90-day period but was not successful in doing so due to the nature of the work or circumstances beyond the
landlord’s control.
6. A petition will not be accepted for filing unless you have fully complied with the above. FAILURE TO SUBMIT
ADEQUATE DOCUMENTATION MAY RESULT IN EITHER ADMINISTRATIVE DISMISSAL OR THE DENIAL
OF YOUR REQUESTED INCREASES. Rules and Regulations Section 7.17 permits dismissal of incomplete
Capital Improvement Petitions. Please review this section if you have any questions.
NOTE: You are required to serve written notice of the rent increase on a tenant after filing your petition with
the Rent Board. Civil Code Section 827 requires service of a ninety (90) day notice of rent increase if the
increase, either by itself or combined with any other rent increase in the one year period before the
effective date, is more than 10%. If 10% or less, a thirty (30) day notice is required. If the rent increase
notice is served by mail, the required notice period must be extended by an additional five days. Rent
increases based on capital improvements may be imposed at any time and need not be imposed only on
the tenant’s rent increase anniversary date. PRIOR TO OR AT THE HEARING, YOU MUST SUBMIT A COPY
OF EACH RENT INCREASE NOTICE WHICH YOU SERVED ON THE TENANT(S) AFTER THIS PETITION WAS
FILED.
Page ii
526 CI Petition 1-5 Units 3/1/22
Printed on 100% post-consumer recycled paper
25 Van Ness Avenue #320
www.sfrb.org
Phone 415.252.4600
San Francisco, CA 94102-6033
rentboard@sfgov.org
San Francisco Residential Rent Stabilization and Arbitration Board
CAPITAL IMPROVEMENT AMORTIZATION PERIODS
For Properties with 1-5 Residential Units
Ordinance Section 37.7(c)(4)(A)
10 years: New roof structure, new roof cover, electrical heaters, central security system, telephone entry
system, new wood frame windows, new mailboxes, weather-stripping, ceiling insulation, seals and caulking,
central smoke detection system, new doors and skylights; appliances, such as new stoves, disposals,
refrigerators, washers, dryers and dishwashers; fixtures, such as garage door openers, locks, light fixtures,
water heaters and blankets, shower heads, time clocks and hot water pumps; and other improvements, such
as carpeting, linoleum, and exterior and interior painting of common areas. If the appliance is a replacement
for which the tenant has already had the benefit, the cost will not be amortized as a capital improvement but
will be considered part of operating and maintenance expenses. Appliances may be amortized as capital
improvements when: (1) part of a remodeled kitchen; (2) based upon an agreement between the tenant and
landlord; and/or (3) it is a new service or appliance the tenant did not previously have.
15 years: New floor structure, new ceiling or walls – new sheetrock, wood decks, new stairs, new furnaces
and gas heaters, new thermal pane windows, new wood or tile floor cover, new sprinkler systems, air
conditioning-central system, exterior siding or stucco, elevator rebuild, elevator cables, new kitchen or
bathroom cabinets and sinks.
20 years: New foundation, new plumbing (new fixtures or piping), boiler replacement, new electrical wiring,
fire escapes, concrete patios, iron gates, sidewalk replacement and chimneys.
CAPITAL IMPROVEMENT ESTIMATOR FEES
Rules and Regulations Section 3.10
COST OF WORK
FEES
COST OF WORK
FEES
$ 0
$ 9,999
$ 480
$ 600,001
$ 750,000
$ 5,625
$ 10,001
$ 20,000
$ 630
$ 750,001
$ 1,000,000
$ 7,250
$ 20,001
$ 30,000
$ 780
$ 1,000,001
$ 1,500,000
$ 10,875
$ 30,001
$ 40,000
$ 900
$ 1,500,001
$ 2,000,000
$ 14,000
$ 40,001
$ 50,000
$ 960
$ 2,000,001
$ 2,500,000
$ 16,875
$ 50,001
$ 60,000
$ 1,020
$ 2,500,001
$ 3,000,000
$ 19,875
$ 60,001
$ 70,000
$ 1,080
$ 3,000,001
$ 3,500,000
$ 23,188
$ 70,001
$ 80,000
$ 1,140
$ 3,500,001
$ 4,000,000
$ 26,000
$ 80,001
$ 90,000
$ 1,200
$ 4,000,001
$ 4,500,000
$ 28,690
$ 90,001
$ 100,000
$ 1,260
$ 4,500,001
$ 5,000,000
$ 31,625
$ 100,001
$ 125,000
$ 1,350
$ 5,000,001
$ 5,500,000
$ 34,031
$ 125,001
$ 150,000
$ 1,500
$ 5,500,001
$ 6,000,000
$ 36,000
$ 150,001
$ 200,000
$ 1,650
$ 6,000,001
$ 6,500,000
$ 37,375
$ 200,001
$ 300,000
$ 2,250
$ 6,500,001
$ 7,000,000
$ 38,500
$ 300,001
$ 400,000
$ 3,000
$ 7,000,001
$ 7,500,000
$ 39,375
$ 400,001
$ 500,000
$ 3,750
$ 7,500,001
AND OVER
$ 40,000
$ 500,001
$ 600,000
$ 4,500
Page iii
526 CI Petition 1-5 Units 3/1/22
Printed on 100% post-consumer recycled paper
25 Van Ness Avenue #320
www.sfrb.org
Phone 415.252.4600
San Francisco, CA 94102-6033
rentboard@sfgov.org
San Francisco Residential Rent Stabilization and Arbitration Board
TIPS FOR PREPARING A CAPITAL IMPROVEMENT PETITION
For Properties with 1-5 Residential Units
For each capital improvement completed within the past five years, provide proof of cost and proof of
payment. Proof of cost can be documented by a bill, invoice, contract, receipt, statement, etc. Proof of payment is best
documented with a copy of a cancelled check. In order to prove payment by credit card, it is usually sufficient to
provide a copy of the credit card bill that includes the applicable charge.
Organize your documents in the order in which the capital improvements are listed on the petition. For each
capital improvement item listed on the petition, include a copy of the bill, invoice, contract, etc., with the proof of
payment attached. For example, if the first two capital improvement items listed on the petition are a new roof and
exterior painting, include a copy of the contract for the new roof, with a copy of the cancelled check to AAA Roofing
Co. attached. Next, include a copy of the invoice for exterior painting, with a copy of the cancelled check to BBB
Painting Co. attached. And so on. Where a single check proves payment for more than one capital improvement, a
separate copy of the check should be attached to the bill/invoice/contract for each of the improvements.
Capital improvements should be listed on the petition in chronological order, with the earliest improvement first.
You must list all 10-year improvements together on Schedule A for 10-year Amortized Items. Then list all 15-year
improvements together on Schedule A for 15-year Amortized Items. Then list all 20-year improvements together on
Schedule A for 20-year Amortized Items. Remember, keep them in chronological order on each list.
For each petition totaling more than $25,000.00 (exclusive of interest), the landlord must provide for each capital
improvement item included in the petition either copies of competitive bids received for work or materials OR copies of
time and materials billing for work performed by all contractors and subcontractors OR payment for the cost of an
estimator hired by the Rent Board. It is permissible to have competitive bids and/or time and materials billings for only
some of the items in a petition and to pay an estimator fee for the remaining items. The amount of the estimator fee is
based on the cost of the items needing an estimate, which may be less than the total amount claimed in the petition.
OTHER HELPFUL HINTS
For owners or managers of more than one property, get separate bills, invoices, contracts, receipts,
statements, etc. for each expense at each property. Alternatively, make sure that the costs attributable to separate
properties are kept separate and can be identified as pertaining to a particular property. Likewise, make payments for
each property separately so that cancelled checks pertain to one property only.
Ask the contractor or service provider to clearly describe the exact nature of the work performed and to clearly
identify the location of the property where the work is performed. In addition, where multiple improvements are listed
on a single invoice, an itemization of costs should be provided. This is particularly helpful if the expenses are
challenged.
At the time that checks are prepared, make a notation on the memo line to identify the expense. For example,
write “exterior painting – 25 Van Ness Ave.” Or, identify the invoice number that corresponds with the payment.
Make all payments by check or credit card. Cash payments are difficult to document.
At the time of purchase of a property, if you anticipate filing a petition, you should require documentation of
capital improvement costs as a condition of closing escrow. It is often difficult to obtain these records from the
prior owner after the transaction is completed.
Abate code violations promptly. The Rent Board cannot certify capital improvement costs if the work was required to
correct a code violation for which a notice of violation was issued and remained unabated for 90 days unless the
landlord made timely good faith efforts within the 90-day period to commence and complete the work but was not
successful in doing so because of the nature of the work or circumstances beyond the control of the landlord.
IF YOU HAVE QUESTIONS, STAFF IS AVAILABLE TO HELP YOU WITH YOUR PETITION. Please call 252-4600
to speak with a Counselor or visit our office. Because of demand and staff limitations, your petition must be
completed as fully as possible before discussing it with staff. It will also expedite our assistance to you if you have
made a written list of questions before you call or visit the office. You may request to speak with a supervisor to
determine if an appointment with one of the Capital Improvement Petition Coordinators is necessary.
Page iv
526 CI Petition 1-5 Units 3/1/22
Printed on 100% post-consumer recycled paper
25 Van Ness Avenue #320
www.sfrb.org
Phone 415.252.4600
San Francisco, CA 94102-6033
rentboard@sfgov.org
San Francisco Residential Rent
Stabilization and Arbitration Board
NOTE: If there are more than 5 residential units on the property, you must use the Capital
Improvement Petition for Properties with 6 or More Residential Units (Form 527).
If you are seeking certification of costs for a mandatory soft-story seismic retrofit pursuant to SF
Building Code Chapter 34B or SF Existing Building Code Chapter 4D, use the Capital
Rent Board Date Stamp
Improvement Petition for Seismic and Other Work Required by Law (Form 528).
LANDLORD CAPITAL IMPROVEMENT PETITION
FOR PROPERTIES WITH 1-5 RESIDENTIAL UNITS
New
Amended
FORM I
È
Building Information
È
San Francisco, CA 941
Entire Building Address (include lowest and highest numbers)
Zip Code
Owned Since
Year Built
Number of Residential Units
Number of Commercial Units
Total Number of Units
The total number of units for which I am seeking a rent increase is
. (List units & tenants on the next page.)
Has a previous petition been filed with the Rent Board concerning this property? q Yes q No
q
I am filing for a rent increase above the current annual rent increase permitted under the Rent Ordinance
.
based on capital improvement costs
Total value of capital improvements claimed in the petition (without interest): $
If total value exceeds $25,000, I have included one of the following for each capital improvement item in the petition:
q
q
Competitive Bid
Time & Materials Billing
Estimator Fee
(List Item #s from Schedule A)
(List Item #s from Schedule A)
(List Item #s from Schedule A)
q
None of the work was required to correct a code violation for which a notice of violation was issued and
remained unabated for 90 days.
If this statement is true, please check the box.
È
Owner Information
È
Name of Company (if applicable)
First Name
Middle Initial
Last Name
Mailing Address:
Street Number
Street Name
Apt./Suite Number
City
State
Zip Code
Primary Phone
Email Address
Is an agent and/or property manager authorized to represent the landlord’s interest in this petition? q Yes q No
If yes, check the appropriate box and attach a written authorization: q Agent q Property Manager
È
Agent Information
È
Name of Company (if applicable)
First Name
Middle Initial
Last Name
Mailing Address:
Street Number
Street Name
Apt./Suite Number
City
State
Zip Code
Primary Phone
Email Address
Page 1
526 CI Petition 1-5 Units 3/1/22
Printed on 100% post-consumer recycled paper
25 Van Ness Avenue #320
www.sfrb.org
Phone 415.252.4600
San Francisco, CA 94102-6033
rentboard@sfgov.org
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