Rules Committee advances ordinance to bar debt-service, certain property-tax pass-throughs after ownership change

San Francisco’s Rules Committee voted May 18 to send an ordinance to the full Board that would prevent landlords who purchase rent‑controlled buildings after April 3, 2018, from passing on debt‑service and acquisition‑related property‑tax increases to existing tenants.

Sponsor Supervisor Feuer introduced the measure after tenants reported an uptick in operating‑and‑maintenance petitions, saying the rule change would close a loophole she called “a subsidy for speculative behavior.” "Tenants should not be burdened with their rent increase just because they have a new landlord," Feuer said, describing the change as limited to pass‑throughs tied to acquisition, not ordinary maintenance or capital improvements.

The Rent Board provided the committee with background on how operating‑and‑maintenance (O&M) petitions are calculated and recent caseload data. "In the last 12 months…