Advocate E X A M I N I N G T H E R AT E A DJ U S T M E N T P R O G R A M
How Did the 2022 Allowable Rent Increase Happen in Oakland?
18 JULY+AUGUST 2022 / EBRHA.COM
rate increases (see chart), you’ll notice this rate increase is not the highest or the lowest. Given that the current rate of inflation is at an all-time high (in June 2022 it was over eight percent but more like 20 percent when you factor the increases in gas and utilities), this percentage should reflect the current economic environment. Property owners face the same hard-
ships as everyone else and need to be able to get a decent return on investment. Wouldn’t it have made more sense to at least increase the rate to a number more closely aligned with the 2019 (see chart) or 2018 rates? How did the Oakland City Council and its leader Sheng Thao, president pro-tem, and members determine the percentage? Under the Freedom of
HAKINMHAN/ADOBE STOCK
A
fter decades of an agreed-upon formula (averaging CPI and CPI minus housing), the Oakland City Council cancelled that formula and created the current allowable increase of 3.0%, which goes into effect August 1, 2022. The approval of the new rate passed in May. If you consider the historical
By Michelle Gamble
