The Los Angeles City Council has given initial approval to an ordinance aimed at curbing rent increases on rent-stabilized units.
Los Angeles City Council members endorsed the proposal, which would cap rent hikes at 4%, or up to 6% if landlords cover gas and electric costs
The ordinance is set to undergo a final vote on December 5 before potential enactment. However, not all Los Angeles City Council members supported the measure. Los Angeles City Council members John Lee and Traci Park opposed it, while Council President Paul Krekorian and Councilman Curren Price recused themselves due to being landlords. The proposed law targets properties subject to the city’s rent-control law and would limit increases from February 1 to June 30, 2024. A mid-December report from the Housing Department is expected to aid in determining appropriate future rent hikes for controlled units.
To support landlords and tenants affected by potential rent increases, the Los Angeles City Council has directed the Housing Department, in collaboration with the United to House LA Citizens Oversight Committee, to create programs for maintaining and preserving rent-controlled units.
The council seeks a report on establishing a rule to distinguish mom-and-pop landlords from corporate landlords, ensuring smaller landlords can access city resources
The Los Angeles City Council’s decision is prompted by the impending expiration on January 31, 2024, of a pandemic-era rent freeze imposed on rent-stabilized units. The Rent Stabilization Ordinance, dating back to 1979, limits allowable increases for units built before 1978, tying them to the consumer price index.
The proposed ordinance adjusts the calculation window for rent hikes using the index from October 2022 to September 2023. Critics argue that the 4% increase is insufficient for small property owners, while housing advocates emphasize the need to mitigate homelessness risks.