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EXHIBIT "D" <br /> <br />Examples Using Formula B: <br /> <br />1. Assume the rent level is $100 per month, of which $50 per <br /> month was attributed to operating expenses in the prior year. <br /> Over the current year, the Cost of Living increase has been <br /> zero, but operating expenses had increased by 10% to $55 per <br /> month. The rent increase for the coming year will be $5 <br /> (i.e. 100% of COL=0 plus the difference between increased <br /> monthly operating costs [$5] and the COL [0]). <br /> <br />2. Using the same assumptions as Example 1, consider what <br /> happens when the Cost of Living increases at 4% and the <br /> operating expenses increase at 2%. The COL adjustment is 4% <br /> or $4. The operating expense adjustment is negative two <br /> percent (-2%) or (-$1) per month. The net monthly rent <br /> increase is $3 ($4 minus $1). <br /> <br /> <br />