Sandhill Acres Mhc, Lc, Respondent Below, Appellant v. Sandhill Acres Home Owners Association, Petitioner Below…

Summary

The Court held that the Rent Justification Act does not require a community owner to prove its original costs and expected return before relying on a capital improvement to justify an above-inflation rent increase. Evidence of a material capital expenditure likely to reduce the owner's expected return establishes a prima facie showing, after which the owner may seek an increase justified by statutory factors such as market rent. The Court reversed the Superior Court and remanded for entry of judgment affirming the arbitrator's order.