Cap. 158 Art. 10Increase of the fair rent of controlled dwelling-houses in respect of improvements.

(1) Notwithstanding anything to the contrary in articles 3, 4, 5 and 7 of the Reletting of Urban Property (Regulation)

Ordinance and in articles 2, 4, 5 and 6 of the Rent Restriction

(Dwelling Houses) Ordinance, if any improvements are carried out by the lessor, after the appointed day, to a dwelling-house which has not been registered as a decontrolled dwelling-house, the fair rent of such dwelling-house shall be increased by the Board, on the application of the lessor to that effect, by an amount, hereinafter in this article referred to as "the appropriate increase", corresponding to six per cent, of any amount up to one thousand and per annum one hundred and sixty-four euroeuro and sixty-nine cents (1,164.69) expended by the lessor on the improvements, as proven to the satisfaction of the Board, or, in default, as assessed, if necessary after an inspection of the dwelling-house, by the Board.

(2) An application for the appropriate increase under sub-article (1) shall not be allowed by the Board unless the tenant and any sub-tenant have agreed in writing, prior to the application, to the carrying out of the improvements and to the payment of the appropriate increase.

(3) An application under sub-article (1) shall, on pain of nullity -

(a) be accompanied by -

(i) the written agreement or agreements referred to in sub-article (2); and

(ii) a certified copy of the determination of the fair rent of the dwelling-house by the Board, if any, and, where more than one determination of such fair rent has been made, a certified copy of the latest of such determinations, and

(b) contain a demand for the appropriate increase stating the grounds therefor: Provided that the Board may, at any time, allow the application to be amended for the purpose of making it clearer.

(4) Where the fair rent of the dwelling-house has not been determined by the Board, an application for the appropriate increase under sub-article (1) shall be allowed by the Board only if the lessor, in the same application, demands also the determination of the fair rent.

(5) In computing the amount expended by the lessor on the improvements, the Board shall not take into account any idle capital, any interest on loans, and any amount which has been paid or may at any time become payable to the lessor, in respect of such improvements by way of grant by the Government.

(6) Any increase of the fair rent approved by the Board under sub-article (1) shall take effect from the first rental period beginning after the completion of the improvements.

(7) The provisions of articles 19 to 24, 28, 29, 32 to 37 and 39 to 43 of the Reletting of Urban Property (Regulation) Ordinance shall apply to any proceedings under sub-article (1).