The RSO is designed to protect a landlord’s constitutional right to a “fair return” on their investment. Section 11-1.07 of the Antioch Municipal Code details the procedure for submitting a Fair Return Petition to the City for consideration of permitting a rent increase in excess of the rent increase limit under the RSO. This procedure includes providing a copy of the Fair Return Petition to the tenant and allowing 30 days for the tenant to respond and provide additional materials to the City. The procedure also requires the landlord to pay for the cost of the proceeding. A hearing officer will determine whether an increase in excess of the limit is justified to maintain a fair return.
Every Fair Return Petition will be decided on a case-by-case basis. Subdivision (B) of Section 11-1.07 of the Antioch Municipal Code lists examples of factors a hearing officer may consider when making a decision on a Fair Return Petition, including capital improvements arising after a tenancy began. Where approved, the calculation of certain capital improvement expenses will be averaged on a per-unit basis and amortized over at least five years.