Hardship Petition Analyzer
Our Hardship-Petition Analyzer can help determine if it makes sense to file a Hardship Petition. Under the rent-control law, a hardship petition allows a housing provider a 12% return on equity. Equity is defined in the law as the assessed value for real estate tax minus the debts on the property. Recent large increases in assessed values may have created a large 'equity' on which to calculate the return. Return is figured as gross allowable rents minus vacancy loss, minus operating expenses (including real estate tax) and minus interest on the debt secured on the property. In some instances a housing provider may obtain a percentage increase through the Hardship Petition process in excess of the allowable CPI-based increase. Use our calculator to figure your potential percentage increase.

The advantages of a Hardship Petition are:
  • The percentage increase in allowable rent can be larger than the annual CPI-based increase.
  • Any unused portion of the Hardship Petition increase can be carried over for later use.
  • Increases from Hardship Petitions are permanent (unlike temporary surcharges from Capital Improvement Petitions) and future percentage increases are compounded on the Hardship Petition increase.
The disadvantages of a Hardship Petition are:
  • No CPI-based rent increases may be taken during the rent-control year (May through April) for which the hardship petition is being filed.
  • Any increase in rent taken from a successful Hardship Petition must be taken in place of a CPI-based increase.
  • Because the maximum allowable rent increase authorized by a Hardship Petition is expressed as a percentage, it may not be possible to take the full percentage increase on rental units already at or near market.
  • Preparation of a Hardship Petition is labor intensive, as each item of expense must be fully documented by copies of invoices, cancelled checks and the like.
Attention to detail is a must when putting together a Hardship Petition and it is not an easy task� In fact it is very time consuming and confusing.

Hire RCC to put your petition together...Call us for more details!


 NOTE: This Hardship Analyzer is provided as an initial threshold test only. Rent Control Consultants does not represent that a hardship petition, if filed and approved, would authorize the increase in rents shown. More detailed consideration is necessary.
Hardship Petition Calculator
Property Code: None Selected

Step #1: Estimating The Hardship Percentage Increase:

1. Current Yearly Rent Potential
If you are a current RCC user and you are logged onto our website with the property that you want to analyze selected then this number will be calculated and displayed automatically. 		$
2. Assessed Value for Real Estate Tax
Assessed value is stated on your real estate tax bill
-- OR --
To lookup the assessed value of a property click on this link:
Lookup Your Properties Tax Assessment 		$
3. Property Debts, Current Balances
   a. 1st Lien: $
   b. 2nd Lien: $
   c. Other Secured Debt: $
$
4. Equity as Defined By Law
Equity is defined as the assessed value for real estate tax minus the debt on the property. 		$0.0
5. Allowable Income per Year
A 12% rate of return is allowed. 		$0.0
6. Net Operating Income Most Recent Year
Note: For the first-pass analysis, operating cash flow minus debt service can be used as operating income. The important consideration is to show operating income minus interest on the property debts, but without deducting any depreciation or amortization. If vacancy has been unusually high, this calculation will give too large an increase from a hardship petition. 		$
7. Increase In Rent To Obtain 12%
$0.0
8. Increase In Rent Per Month
$0.0
9. Enter the date of your last CPI increase   (MM/DD/CCYY)
Maximum Allowable Hardship Petition Percentage Increase In Rent
 0.0%
Annual CPI Percentage Increase In Rent (including 2%) 
 		 3.1%
Net Gain Hardship Petition Percentage Increase Over CPI 
 		 0.0%
 

Step #2: Compare Estimated Increase Above To Current Market Rents: