New tenants moving into rent-controlled buildings in Santa Monica will not have to pay surcharges on past bond measures, after the Rent Control Board voted 5-0 to end pass-throughs on local voted indebtedness. The surcharges will also end for new property owners, meaning they can no longer pass massive tax increases down to tenants when buildings turn over.

The decision is not retroactive, meaning tenants who are currently paying surcharges will continue to do so unless their building is sold to a new owner. The new policy for land owners will go into effect for sales after March 1. Boardmembers hope the new policy will help solve an unintended consequence of Proposition 13: massive tax increases passed down to tenants when their expensive real estate switches hands.

Read More: http://smdp.com/rent-control-abolishes-surcharges-for-new-tenants/164173