A landlord may file an application for a surcharge to cover the cost of a planned major capital improvement to a multiple dwelling as defined in §
321-1 hereinabove. The landlord's application shall include the total cost of the capital improvement; the number of years of useful life of the capital improvement as claimed by the landlord for depreciation for income tax purposes; and the amount of the surcharge sought from the tenant. The Rent Control Board may grant a surcharge only if it finds that the major capital improvement benefits the tenant. The Board may approve the planned major capital improvement; however, the landlord may not implement the surcharge until the landlord submits verification of completion of work and payment (in the form of a detailed invoice and paid bill or cancelled check) and the Rent Control Board provides final approval.
The landlord must give each tenant proposed to be affected by
a capital improvement surcharge written notice of the application
for surcharge at least 30 days prior to the hearing date of the application.
Any capital improvement surcharge, as provided herein, shall
not be considered rent for the purposes of computing the annual cost-of-living
rent increases.