LA Moves Forward With Further Rent Control

According to an email sent by the California Self Storage Association (CSSA), The Los Angeles Housing and Homelessness Committee has recommended updates to the city’s Rent Stabilization Ordinance (RSO) to change how annual rent increases are calculated. The proposal would base rent hikes on 60 percent of the Consumer Price Index, with a minimum increase of 0 percent and a maximum of 3 percent per year. The updated RSO also removes extra rent increases tied to utility costs, prevents additional charges when tenants add dependents, and calls for more financial support to help small landlords maintain and repair their properties using existing housing funds. Overall, the changes aim to better balance tenant protections with support for small property owners, without impacting the city’s General Fund.

Ultimately, the request to draft the updated ordinance passed 12 to 2 with one absent councilmember. The real estate industry worked with the city council to modify their original ordinance. Key changes include:

• Annual rent hikes for RSO-regulated buildings will have a 1 percent floor and 4 percent ceiling, replacing the committee’s proposed 0 percent floor and 3 percent ceiling.
• The formula for calculating allowable increases will now use 90 percent of the Consumer Price Index, up from the 60 percent recommended by the committee.
• The current 1 percent to 2 percent increases for landlords who pay for gas or electricity will be eliminated.
• Landlords will no longer be allowed to impose extra rent hikes for tenants with additional dependents.
  
  

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