The Rent Control Board Thursday will attempt to tackle an unintended consequence of Proposition 13 and Santa Monica’s booming real estate market: skyrocketing surcharges passed along to tenants when the worth of their building (and thus tax bill) is reassessed after a sale or construction. Board members say they want to hear from stakeholders before deciding whether to cap the surcharges or find other ways to give already rent-burdened tenants some relief.

“This is madness and it needs to stop and we need to address it as soon as possible,” Boardmember Nicole Phillis said at the Jan. 11 RCB meeting, calling the surcharges a “crisis.” Phillis is suggesting a sunset clause on the pass throughs that would not allow new property owners to pass specific surcharges to tenants. It could also spare new tenants from paying pass-throughs.

Read More: http://smdp.com/board-may-put-an-end-to-passing-tax-increases-to-rent-controlled-tenants/164035