Finance

Good News For LA Renters: City Ready for Ordinance Curtailing Rent Hikes

Good News For LA Renters: City Ready for Ordinance Curtailing Rent Hikes

Los Angeles: On Tuesday, the Los Angeles City Council will consider adopting an ordinance that would limit rent increases on rent-stabilized units to 4%, or up to 6% if landlords cover gas and electric costs.

On November 14, the council decided to proceed with a proposal to cap rent increases for properties covered by the city’s rent-control law by a vote of 10 to 2. The proposed ordinance states that rent increases would be prohibited from February 1 through June 30, 2024.

Due to their landlord status, council members Paul Krekorian, Curren Price, and Katy Yaroslavsky withdrew from the vote in November. John Lee and Traci Park, two council members, voted against the item.

The proposal, which is scheduled for discussion on Tuesday, would base the rent increases on a formula found in the city’s rent control law, but it would use the consumer price index from October 2022 to September 2023 rather than October 2021 to September 2022.

The proposal’s author, Councilman Bob Blumenfield, claimed that the formula, which took into account the most recent consumer price index, would permit a rent increase of 4% to 6% as opposed to the 7% to 9% increase that would have otherwise been possible.

In an effort to guarantee small landlords can obtain city resources to remain afloat, the council also modified its proposal to include a report on creating a rule or policy that would help distinguish mom-and-pop landlords from corporate landlords.

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