The California Apartment Association today released a new compliance paper providing housing providers with guidance on Los Angeles' rent stabilization ordinance, including its applicability, registration and rent registry requirements, and rent increase limits.

The paper also addresses recent amendments to the city's rent control law that take effect Feb. 2, offering context and compliance considerations tied to the revised rent increase formula.

The Los Angeles City Council in December gave final approval to a package of amendments that alter how allowable rent increases are calculated for properties subject to the city's rent stabilization ordinance. City records show the changes take effect Feb. 2.

As adopted, the amendments narrow the city's long-standing rent adjustment framework by calculating allowable annual rent increases at 90% of the Consumer Price Index, subject to a 4% ceiling and a 1% floor. The ordinance also eliminates a provision that previously allowed housing providers who paid for tenants' gas or electric service to apply an additional rent increase.

The California Apartment Association raised concerns throughout the legislative process that tightening the rent control formula could make it more difficult for housing providers to keep pace with rising operating costs, maintain housing quality, and reinvest in older rent-controlled properties. CAA also objected to the compressed timeline surrounding the ordinance's consideration, noting that draft amendments were released only one day before the City Council advanced them.

In addition to explaining the amended rent increase provisions, the compliance paper outlines how the rent stabilization ordinance applies to different property types and details ongoing requirements related to registration, rent registry filings, notices to tenants, and available exemptions.

The paper also discusses how the amended rent increase limits apply during the current annual rent increase period, including how the changes affect landlords who would otherwise seek to apply additional increases tied to landlord-paid utilities.

The compliance paper is intended to help CAA members understand and comply with the rent stabilization ordinance now in effect. The association will update the guidance as additional clarification becomes available from city officials.

Also today, CAA released a separate compliance paper focused on the rent stabilization ordinance's just cause eviction provisions, which explains when a tenancy may be terminated and outlines the procedural requirements housing providers must follow under the ordinance.