Fair Return Calculator
The draft ordinance’s own escape valve, in one calculation. Section 26.90.050 presumes the net operating income your building earned in 2025 was a fair return — and entitles you to maintain it at 100% of CPI (not the 60% that governs the annual cap). When documented NOI falls below that target, the gap is the indicated rent adjustment. This is the maintenance of net operating income (MNOI) standard, and this page runs it on your numbers.
The most recent full calendar year when you file (§050(E)).
Pre-filled with the site’s worked 12-unit example — replace every number with your own. Enter qualifiedamounts per the “what counts” lists; the real petition requires documentation for each line.
The MNOI test, drawn to scale
Documentable annual shortfall — what a §26.90.050 petition exists to correct:
$20,799 per year
$144
per unit, per month
5.5%
as a rent adjustment on current rents
For contrast: one ordinary cap cycle (≈2.1%) on the same rents is about $7,952 a year — and it is already reflected in rents you were allowed to charge. Only a fair-return petition reaches the full shortfall.
How this maps to the draft
Base year (§26.90.020): calendar 2025 — the year before the December 16, 2025 base-rent date. The presumption (§050(D)): base-year NOI is presumed a fair return; the presumption can be rebutted in limited circumstances. The test (§050(E)):fair-return NOI = base-year NOI adjusted by the full change in CPI (California CCPI, All-Urban, All Items, CA DIR — the draft’s operative index). The remedy: a rent adjustment equal to the documented gap, granted prospectively through the petition process (§26.90.080 hearing procedure).
This simplified version asks for totals; the real petition itemizes every line under §050(H) — including caps this page only flags (landlord labor ≤5% of gross, registry fee ≤50%) — and turns on documentation. CPI factors beyond 2025 are projections consistent with the site’s fair-return materials and are replaced by DIR actuals as published. Read the full mechanics on The Petition Pathway and the ordinance status on The Ordinance.
This is an educational estimate, not advice. It is not an appraisal, not legal, tax, or investment advice, and not a prediction of how a hearing officer would rule. Chapter 26.90 is a public-review draft; its terms may change before adoption. Want the real version — your rent roll, documented expenses, the petition question answered by a person? Request your building’s analysis or email GolisTeam@radiusgroup.com.