LA City Council Narrows Rent Caps on Stabilized Apartments
Los Angeles strengthened its rent stabilization law for the first time since 1985 Wednesday, setting a maximum 4% ceiling on annual rent increases for a massive portion of the city’s housing stock, reported the Los Angeles Times. The maximum annual increase on rent-stabilized apartments will now range between 1% and 4%, depending on inflation, down from current caps of 3% to 8% and as much as 10% if the landlord pays for utilities.
The historic vote by the LA City Council to update the Rent Stabilization Ordinance will help set rents in the coming decades for nearly 650,000 households who live in units built before 1978, a renter population that includes nearly half the city’s residents. It also bars landlords from extra rent hikes on tenants with additional dependents and eliminates the 1% to 2% increase for landlords who pay for gas or electricity.
Two councilmembers voted against the new rules, arguing that they would tip the scale against landlords and could chill development. “This sets the message: do not build here. Do not invest in Los Angeles. Do not keep your units on the market,” said Councilmember John Lee, who voted against the new cap with Councilmember Bob Blumenfield.
“You cannot claim to be pro-housing while pushing regulations that are anti-housing provider,” said Fred Sutton of the California Apartment Association during the public comment portion of Wednesday’s council meeting. He urged the council to reject the proposal and “any magic numbers that will deepen our housing crisis.”
The measure’s proponents said the changes were necessary for tenants struggling to make rent every month, reported the Times. “The city has not done enough to protect renters,” said Councilmember Nithya Raman, who wrote the proposal. “What we have right now is an opportunity to make L.A. more affordable, because when people can afford to stay in Los Angeles, this entire city thrives.”
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Remax Real Estate Professionals
Re/Max Real Estate Professionals
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Central CA Commercial | California
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Northgate Real Estate Group
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