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Page 3 of 12 <br />5/5/2026 <br />ATTY/DOCS-ORDINANCE-REGULATIONS/05-05-26 FAIR RATE OF RETURN APPEAL GUIDELINES AND APPEAL FORM <br />REV: 05-05-26 LF <br />Chapter 1: Purpose and Authority <br />The City Manager is authorized to adopt guidelines for determining the information necessary for <br />filing a fair rate of return appeal and the ground for granting any such appeal pursuant to Section <br />42.5(B)(2)(d)(iv)(IV). <br />1. Redwood City’s Tenant Protection Ordinance (Section 42.5(B)(2)(d)(iv)) requires that <br />landlords who are terminating a tenancy for a substantial remodel must offer the displaced <br />tenant(s) the first right to return to the rental unit upon completion of the substantial remodel. <br />The opportunity to re-rent the rental unit must be offered at: <br /> <br />a. The rent that was in effect when the tenancy was terminated plus any increase(s) <br />allowed by the Tenant Protection Act of 2019 (Civil Code Section 1947.12), had the <br />tenant continuously occupied the rental unit (“Right to Return Rent”); and <br /> <br />b. With a lease that contains the same material terms as the lease that was in effect at <br />the time the tenancy was terminated, except for any changes to terms required by any <br />federal, state or local laws. <br /> <br />2. A landlord who is required to offer the tenant a right to return to the rental unit upon <br />completion of a substantial remodel at the Right to Return Rent may file an appeal with the <br />City requesting to offer to re-rent the rental unit at a higher rent, if offering the tenant the Right <br />to Return Rent would cause the landlord to be unable to obtain a fair rate of return on the <br />property ("Fair Rate of Return Appeal"). <br /> <br />3. These Guidelines establish the process for landlords to file a Fair Rate of Return Appeal and <br />basis for granting or denying a Fair Rate of Return Appeal. <br /> <br />4. Each provision of these guidelines is severable and shall remain in effect in the event any <br />other provision of these guidelines, or the application thereof to any person or circumstance, <br />is held invalid. <br />Chapter 2: Application for Fair Rate of Return Appeal <br />1. All Fair Rate of Return Appeals must be received by the City Clerk's Office within ten (10) <br />calendar days after the substantial remodel is completed. <br /> <br />2. A substantial remodel shall be deemed completed on either the date of the final inspection <br />pursuant to the building permit issued for the substantial remodel, or if no building permit <br />was required, the date of completion as evidenced by a letter from the contractor performing <br />the work. <br />8.A. - Page 52 of 85 <br />310