🏠 Housing & Land
Section 3 — Rentals, Multi-Unit Housing & Lodging
Section 3 Purpose
Renters should not be forced to subsidize vacancy, speculation, or artificial scarcity. Rental pricing must reflect real costs, real occupancy, and real maintenance — not market manipulation. This section ensures fair rent calculation, prevents abuse in multi-unit properties, and regulates short- and long-term lodging to protect affordability.
Legal-Style Provisions
3.1 Base Rent & Cost-Based Pricing
3.1.1 Rental Baseline Standard
Rent for residential units shall be calculated from:
- Regulated Assessed Current Value (RACV) of the property, plus
- Approved inflation adjustments, plus
- Documented operating costs, divided by
- Total habitable units.
3.1.2 Prohibition on Market-Only Rent Setting
Rental prices may not be justified solely by market rates where those rates exceed cost-based calculations.
Landlords must be able to show a cost basis for rent (including maintenance, taxes tied to RACV, verified financing costs, and permissible margin). “Comparable rent” claims do not override the cost-based ceiling where comparables reflect scarcity manipulation, speculation, or collusive pricing.
Where market rates are used as a reference, they may only be used to set rent downward, not to exceed the allowable cost-based cap.
Summary — 3.1 Base Rent & Cost-Based Pricing
This subsection ensures rent is anchored to real ownership cost, verified operating expenses, and habitable unit count—rather than speculative market rates.
Examples
Example: A landlord cites “market comps” to raise rent despite stable costs and no improvements. → Prohibited when market exceeds cost-based rent.
Example: A building’s operating costs rise due to verified repairs and insurance increases. → Cost-based rent may adjust only by documented amounts.
Why this subsection exists
Market-only rent setting enables coordinated rent inflation, punishes tenants for scarcity they didn’t create, and disconnects rent from real cost.
3.2 Unit-Based Allocation & Fair Distribution
3.2.1 Proportional Rent Allocation
Rent must be apportioned fairly between units based on:
- square footage, or
- bedroom count, or
- a documented hybrid of both.
Landlords must choose one allocation method, and apply it consistently, unless it is disclosed and justfied.
3.2.2 Transparency Requirement
Landlords must provide tenants with a clear rent breakdown upon request, showing how rent was calculated.
The breakdown must include the components used to calculate rent (base cost, allowable adjustments, verified shared-cost allocation method, and any permitted variance), and must be provided within a reasonable timeframe.
Failure to provide a breakdown creates a rebuttable presumption that rent was not calculated in compliance with this Act.
Summary — 3.2 Unit-Based Allocation & Fair Distribution
This subsection prevents arbitrary pricing between units by requiring a consistent allocation method based on size and/or capacity.
Examples
Example: A 4-bedroom unit and a 2-bedroom unit are priced identically with no justification. → Must be allocated proportionally.
Example: Landlord uses a hybrid method but cannot explain the weighting. → Violates transparency requirement.
Why this subsection exists
Unequal unit pricing creates hidden discrimination, encourages gouging of high-need households, and makes rent incomprehensible and unchallengeable.
3.3 Vacancy & Empty-Unit Protections
3.3.1 No Vacancy Cost Shifting
Occupied tenants may not be charged higher rent to offset:
- vacant units,
- unsold units,
- or speculative withholding.
Vacancy costs are the responsibility of the property owner.
3.3.2 Chronic Vacancy Review
Multi-unit properties with persistent vacancy may be subject to:
- rent caps,
- compulsory unit offering,
- or acquisition at regulated value.
“Persistent vacancy” = vacancy rate above X% over Y months or units held off-market intentionally.
Summary — 3.3 Vacancy & Empty-Unit Protections
This subsection prevents owners from shifting vacancy losses onto paying tenants and discourages intentional withholding of habitable units.
Examples
Example: 40 units exist, 15 occupied, and rent increases are imposed to “make up the difference.” → Prohibited; vacancy costs remain with the owner.
Example: Units are left unrented despite being habitable to create scarcity. → Triggers chronic vacancy review and corrective measures.
Why this subsection exists
Vacancy cost-shifting makes tenants subsidize speculation and rewards artificial scarcity, driving rents upward without improving housing.
3.4 Maintenance, Habitability & Rent Adjustment
3.4.1 Habitability Standard
Rental units must meet minimum safety and habitability requirements.
Habitability includes structural integrity, weatherproofing, functional plumbing and electricity, absence of hazardous mold or infestation, and compliance with applicable safety codes.
Where habitability materially degrades, rent must be reduced proportionally and corrective repair timelines enforced, with penalties for prolonged noncompliance.
3.4.2 Rent Reduction for Defects
Where deficiencies exist:
- rent must be reduced proportionally until resolved,
- repair costs may not be passed through retroactively.
Rent reductions are automatic once verified (inspection report / written notice + failure to cure), to prevent stalling.
Summary — 3.4 Maintenance, Habitability & Rent Adjustment
This subsection ties rent to livability by requiring repairs and reducing rent when verified defects persist.
Examples
Example: A unit has mold and leaks; landlord delays repairs while collecting full rent. → Rent must be reduced until corrected.
Example: Landlord attempts to charge tenants for deferred maintenance retroactively. → Prohibited.
Why this subsection exists
Without a rent consequence, neglect becomes profitable and tenants are forced to pay full price for unsafe housing.
3.5 Student Housing & Boarding
3.5.1 Equal Treatment of Student Housing
Student housing, boarding houses, and dormitory-style rentals are subject to the same pricing and habitability rules as standard rentals.
Educational affiliation does not exempt landlords or institutions from cost-based pricing, safety requirements, or transparency obligations.
Where student housing is institution-controlled, the institution is treated as the responsible landlord entity for compliance and enforcement purposes.
3.5.2 Anti-Exploitation Rule
Institutions or landlords may not inflate rent based on:
- enrollment status,
- academic year,
- or forced proximity to campus.
Student status may not be used as a proxy for seasonal surge pricing.
Summary — 3.5 Student Housing & Boarding
This subsection prevents student housing and dorm-style rentals from being treated as a captive market with inflated pricing.
Examples
Example: Rent near a university increases only during the academic year. → Prohibited student-based inflation.
Example: A boarding-style lease charges hidden fees tied to enrollment periods. → Must follow the same cost-based transparency rules.
Why this subsection exists
Students often lack bargaining power and are forced into proximity-based housing, making them easy targets for predictable price manipulation.
3.6 Campgrounds, RV Parks & Long-Term Lodging
3.6.1 Lodging Classification
Campgrounds, RV parks, and extended-stay lodging serving long-term residents are treated as residential housing for pricing purposes.
Long-term = Individuals are at a given location for 30+ days, or it is listed as a primary residence.
3.6.2 Cost-Aligned Pricing
Rates must reflect:
- land value,
- provided utilities,
- amenities offered, and may not exceed reasonable residential equivalents.
Summary — 3.6 Campgrounds, RV Parks & Long-Term Lodging
This subsection prevents long-term residents from being charged exploitative “tourism pricing” when a campground or RV park functions as housing.
Examples
Example: An RV park serving month-to-month residents raises rates like a hotel during peak season. → Treated as residential; cost-aligned caps apply.
Example: A long-term campground adds mandatory fees unrelated to utilities or amenities. → Prohibited unless cost-justified and disclosed.
Why this subsection exists
When lodging becomes a de facto home, unstable “vacation pricing” becomes displacement pressure and increases homelessness risk.