L.A. City Council to revisit proposal that would tighten rent control formula

The Los Angeles City Council on Wednesday will hold a second hearing to consider major changes to the city's rent control formula - a proposal that would limit allowable rent increases for housing providers under the city's rent stabilization ordinance. The item appears as Item 9 on the council's meeting agenda.

Last year, the city released an adjustment study recommending substantial changes to the formula that has governed rent increases since 1978. The proposed revisions would reduce rental housing providers' ability to adjust rents fairly and sustainably.

Among the study's key recommendations are replacing the CPI-All Items index with the CPI-Less Shelter index, which excludes housing costs and typically results in a lower rent increase allowance; lowering the minimum rent increase floor from 3% to 2%; reducing the maximum allowable rent increase cap from 8% to 5%; and eliminating the 1% to 2% utility rent increase for landlords who cover gas and electricity.
Read the full city report.

A peer review by Beacon Economics found serious flaws in the city's study, concluding that the proposed changes are not supported by data and would worsen Los Angeles' housing challenges.
Read key highlights of the Beacon review.

At the first hearing, tenant activists dominated public comment, urging the council to go even further by capping rent adjustments at 3% or 60% of inflation - whichever is lower. These additional restrictions would further decouple rent adjustments from actual cost increases and inflation.

The California Apartment Association urges Los Angeles housing providers to speak out against these proposals and attend Wednesday's hearing. The meeting begins at 2 p.m. in the John Ferraro Council Chamber, 200 N. Main St., Los Angeles. The item will be discussed under Item 9: rent stabilization ordinance formula changes.

Housing providers are also encouraged to contact council offices using CAA's one-click advocacy tool.