Supervisors may extend 4% rent increase cap in unincorporated LA County

The Los Angeles County Board of Supervisors on Tuesday will consider extending until the end of the year a 4% cap on rent increases for rent-controlled apartments in unincorporated areas.

In response to the COVID-19 pandemic, the county enacted a freeze on rent hikes for rent-controlled units in March 2020. The freeze was extended multiple times, but in November 2022, the board agreed to allow increases, capped at 3% for rent-controlled units during 2023.

Last November, the board voted to extend the rent-increase cap until June 30, 2024, but supervisors increased the allowable increase from 3% to 4%. The cap applies to rent-controlled units subject to the county’s Rent Stabilization and Tenant Protections Ordinance.

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A motion introduced by Supervisor Holly J. Mitchell and going before the board Tuesday notes that since the pandemic, Angelenos have continued to face significant economic hardships, inflation and a rise in housing costs.

“Rent stabilization ordinances provide moderate annual increases to support maintaining housing stability and overall property maintenance,” the motion states. “Low-income Black and Brown residents, who disproportionately are renters, experienced immense public health impacts, loss of employment, and increased healthcare expenses during the pandemic. Consequently, many are still facing significant rental debt.

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“As many tenants arrange payment plans for unpaid rent, their monthly payments will increase even if their base rent remains the same.”

There are roughly 109,000 renter households in unincorporated areas, with about 51,700 units across 10,900 properties subject to rent stabilization under RSTPO, according to the motion. The majority of them are in the South Los Angeles, East Los Angeles and San Gabriel Valley areas.

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In addition to extending the 4% cap on rent increases for rent-control units, the motion would also call on county staff to return to the board with an amendment to the rent-control ordinance establishing a formula for future rent increases when the cap expires at the end of 2024. The proposed formula — based in part on the average change in the Consumer Price Index — would generally cap increases at 3%, but would allow up to 4% if a property or property owner meets a specific set of criteria. It would also allow increases of up to 5% for “luxury units.”