Can landlord raise rent for moving someone else in?

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I signed this very sloopy lease 6 months ago. I did move someone else into the unit. Now my landlord wants to raise rent from $1300 to $1600. I understand moving someone else into the unit might have breached the agreement and would be okay with a slight increase. But can she raise rent that much? Given that there is nothing in the lease about maximum occupants or additional fees for additonal residents? What about the last part of the lease that states rent wont increase more than 6%, is that null if the lease is breached? Lastly, I JUST noticed the part stating security deposit will be returned after 60 days, CA law requires return within 21 days. Can the lease overrule the law if I signed it to.

Additional details, we are in SF, CA and after doing some digging due to this whole situation i'm not sure if this is a legal dwelling unit. It is an in-law apartment with no smoke detectors or carbon monoxide detectors and not metered seperately for PG&E and has no seperate address.

Does that change anything about the lease?

Here is the exact lease
"This document details an agreement between Landlord and FULL NAME (NAME).
Landlord owns a home on XXX, San Francisco, California, (the property). NAME will move into downstairs portion of Landlord's property on May X, 2011 (NAME's living area).
NAME will pay to Landlord $1300.00 per month plus the cost of electricity as reflected by a meter dedicated to name's living area using current costs per kilowatt as charged by PG&E. NAME will pay to Landlord each month's rent in advance of the twentieth day of that month. NAME will pay to Landlord electrical charges within thirty ( 30 ) days of notification.
In advance of moving in, NAME will pay the first and the last month's rent along with a $1300.00 cleaning deposit, refundable in whole or in part within sixty days of the date NAME moves out depending upon condition of NAME's living area, along with a $300.00 electrical use deposit, refundable in whole or in part within 60 days of NAME moving out depending upon NAME's payment for electrical use. NAME will give Landlord two month's notice in advance of moving out.
Landlord will ensure that the property is reasonably maintained and ensure the payment of monthly utilities. Landlord or Landlord's agents will respond to all notifications requesting repairs, modifications, or other maintenance within 48 hours of notification and will make a best effort to remediate such problems as quickly as possible.
Landlord will give NAME at least 24 hours' notice in the event Landlord or her agents need access to NAME's living area. Landlord will give NAME six month's notice in the event Landlord wishes to reclaim use of NAME's living area. Landlord will give NAME two month's notice in advance of any increase in rent, which will not occur more than once per year and will not exceed six percent per year."

I am inclined to pay if I breached the lease but $1600 for a 1 bedroom with no oven/dishwasher/or full stove is a little steep

Any help would be great. Thank youWhat is the name of your state (only U.S. law)?