CAA seeks member input on proposed RUBS changes in Los Angeles

The California Apartment Association is asking rental housing providers to share how a proposed ban on ratio utility billing systems in Los Angeles would affect their operations, as the City Council considers a staff report that goes well beyond its original directive on utility billing transparency.

As outlined in a recent report from the L.A. Housing Department, city staff are recommending prohibiting the use of RUBS in rent-controlled housing and treating utilities as rent under the city's rent control law. The report also proposes extensive new disclosure and documentation requirements for utility billing at non-rent-controlled properties.

Those recommendations stem from a City Council motion adopted in 2022 that asked the Housing Department to explore ways to improve transparency in third-party utility billing. The motion did not call for eliminating RUBS or redefining utilities as rent.

CAA opposes the staff recommendations, citing concerns that they stray far beyond the scope of the original motion and would create significant operational challenges for rental housing providers. The association supports the use of RUBS when paired with clear disclosure requirements, noting that billing systems tied to resident usage can encourage conservation while helping property owners manage rising utility costs.

To help inform its advocacy, CAA is gathering real-world feedback from housing providers through a brief survey focused on how the proposed changes would affect day-to-day property management, compliance obligations and financial operations.

Member input will be used to help policymakers better understand the practical consequences of the staff proposals, particularly as rental housing providers continue to adjust to recent changes in the city's rent stabilization ordinance formula.

The Housing Department document is a staff report only. No ordinance has been introduced, no hearing has been scheduled, and no timeline has been set for City Council consideration. However, utility billing practices and rent definitions are frequently revisited by local governments, making early engagement critical.

Rental housing providers are encouraged to participate in the survey and share their experiences so CAA can effectively represent the industry's perspective as discussions continue.