City Leaders Adopt the First Sweeping Update to the Rent Stabilization Ordinance in Four Decades
The Los Angeles City Council approved the most significant revision to its Rent Stabilization Ordinance in more than 40 years on Wednesday, adopting a formula that will cap annual rent increases for regulated units at 4%. The 12-2 vote followed two hours of debate that highlighted the competing pressures city leaders face as they attempt to protect tenants while addressing rising costs for property owners.
Under the plan, allowable rent hikes for the roughly 650,000 units covered by the RSO will fall between a 1% minimum and a 4% maximum each year. That replaces the current system, which permits increases ranging from 3% to 8% and allows landlords to tack on an additional 1% to 2% when they pay for gas or electricity. Those utility-based surcharges will now be eliminated, and owners will no longer be permitted to raise rent because a tenant has additional dependents…