\n rent control rules<\/a>
\n guarantee landlords the right to raise rents at least 3% every year. Increases can be as high as 10% in some apartments during periods of high inflation.<\/p>\n
But under the reforms passed by 12 of the council\u2019s 15 members, rent increases would be capped at 4% annually, and an additional 2% increase for landlords who cover utilities would be eliminated. The exact rate each year would be equal to 90% of the change in the region\u2019s consumer price index, a government measure of economic inflation.<\/p>\n
\u201cWe need to make a change to this formula,\u201d said Nithya Raman, chair of the council\u2019s Housing and Homelessness Committee ahead of the vote. \u201cExtraordinary rent increases are driving people out of the city.\u201d<\/p>\n
The rules passed by the majority of councilmembers would set a new floor of 1% in years of low inflation. Councilmembers Bob Blumenfield and John Lee voted against the changes, and Councilmember Curren Price recused himself from the vote because he is a landlord.<\/p>\n
This is the first overhaul of the city\u2019s rent increase formula since 1985. Tenant groups have long argued that the current rules increase costs faster than incomes for many renters, pushing some toward eviction and potential homelessness.<\/p>\n
Landlord groups decried the changes, saying the city is further clamping down on their ability to keep up with skyrocketing insurance premiums and steep maintenance costs.<\/p>\n
Before the new rules take effect, they still need to be drafted by the City Attorney\u2019s Office and returned to the council for a final vote.<\/p>\n
\u2018We would end up homeless\u2019<\/p>\n
The changes represent a step toward but not a full adoption of the demands for a 3% cap at 60% of inflation from tenant groups. Humberto Altamira, an unemployed cook living with his wife in L.A.\u2019s downtown Fashion District, said his family\u2019s rent went up about $50 per month earlier this year, and they would struggle to afford another increase of 3% or more.<\/p>\n
\u201cWe would end up homeless and living on the street,\u201d Altamira said, speaking in Spanish.<\/p>\n
<\/p>\n
Humberto Altamira and his wife stand in front of L.A. City Hall ahead of a City Council vote on rent control. <\/p>\n
During the COVID-19 pandemic, the city banned increases \u201cReject arbitrary magic numbers,\u201d Sutton said. \u201cThese changes will not create a single new home, but they\u2019ll make it even harder to build, making the housing crisis worse for everyone.\u201d<\/p>\n Where LA rent control applies<\/p>\n The city\u2019s rent control rules generally cover apartments built before October 1978, as well as new units that replace demolished rent-controlled units or are attached to older buildings.<\/p>\n Nearly two-thirds of L.A.\u2019s residents live in rental housing. And because most of them live in older properties, the city\u2019s rent control rules affect about 42% of all L.A. households.<\/p>\n Some councilmembers, including John Lee, said stricter rules would run counter to other local policies to spur housing development, such as Mayor Karen Bass\u2019 \u201cJust as we are gaining momentum, we are considering a change,\u201d Lee said. \u201cThis sends the message, \u2018Do not build here. Do not invest in Los Angeles.\u2019\u201d<\/p>\n
\n for nearly four years<\/a>
\n . The new cap, while
\n comparable to caps in many other<\/a>
\n Southern California cities, does not reflect the rising costs property owners face, said California Apartment Association spokesperson Fred Sutton.<\/p>\n
\n executive directive<\/a>
\n to speed up the approval of affordable housing projects.<\/p>\n