1263. Definition of Net Operating Income

(A) The net operating income for a property for any period shall be the gross income less the following: property taxes, reasonable maintenance and operating expenses, and the amortized cost of capital improvements (pursuant to Section 1267). Gross income shall be the total of the gross rents lawfully collectible from a property at 100% occupancy, plus any other consideration received or receivable for, or in connection with, the use or occupancy of rental units and housing services (including consideration from laundry, parking, or any other facilities or fees). Gross rents collectible shall include the imputed rental value of owner-occupied units.

(B) If the necessary data for the base year is not available, base year NOI will be 60% of the gross rents collected in the base year. In addition, if the actual base year NOI has not been determined in a prior petition and for the purpose of simplifying the petition process, a landlord may elect to have the base year NOI set at 60% of the gross rents collected in the base year.

[Amended regulation effective December 8, 1995]