Major Rent Control Overhaul in LA: First Update in 40 Years Offers Relief with Reduced Rent Hikes for Tenants!

Los Angeles is shaking things up with a big change to its rent control laws. For the first time in 40 years, the City Council has agreed to limit yearly rent increases across many apartments.

Currently, landlords can raise rents by at least 3% each year and even up to 10% in periods of high inflation. With the new rules, rent hikes will be capped at 4%. If inflation is lower, increases will be based on 90% of the region’s consumer price index, a key measure of economic changes. “Extraordinary rent increases are driving people out of the city,” said Nithya Raman, chair of the council’s Housing and Homelessness Committee.

This new law will set a minimum increase of 1% in low-inflation years. However, not everyone is thrilled. Some council members opposed the change, arguing it could hurt landlords facing rising costs for insurance and maintenance. Even so, many tenant groups feel this reform is a necessary step toward easing financial pressure on renters. They’ve been advocating that current rules often raise costs faster than incomes, putting many renters at risk of eviction.

Before becoming official, these new regulations need to be finalized by the City Attorney’s Office and voted on again. Humberto Altamira, a resident of downtown L.A., expressed concern over rent hikes, saying, “We would end up homeless and living on the street” if costs keep rising.

The conversation around rent control is not new for L.A. During the pandemic, rent increases were banned for nearly four years to protect residents. Now, the city’s rules impact roughly 42% of households, affecting mostly older properties built before 1978.

However, the new cap may not keep up with the burdens property owners face. Fred Sutton from the California Apartment Association claimed that these changes could worsen the housing crisis and make it harder to build new homes. In contrast, Council member Eunisses Hernandez highlighted that controlling rental costs is vital in tackling the city’s homelessness issue, which stands at around 43,500 individuals without housing.

Public opinion is mixed, with both renters and landlords voicing their concerns at council meetings. Some, like Megan Briceño, a landlord with plans to build more units, fear the new laws will hinder their ability to maintain property and invest in development.

In trying to find a balance, the council hopes these reforms will lead to a more equitable housing landscape while addressing urgent needs for both renters and landlords. The debate is far from over, as stakeholders on both sides continue to weigh in and react to these significant changes.

For more details on the topic, you can read the official City of Los Angeles report on rent control (link).

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City of Los Angeles,landlord rights,rent caps,rent control,tenant rights