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L.A. Council Approves 1%–4% Inflation-Linked Rent Cap for Rent-Stabilized Units

The decision triggers legal drafting plus a 30-day review of likely effects on housing production.

Overview

  • The City Council voted 12-2 to adopt the new formula for RSO units and instructed the city attorney to draft the ordinance before final implementation.
  • Annual increases will equal 90% of the Consumer Price Index, with a 1% floor and a 4% ceiling.
  • The update eliminates the extra 1%–2% increase when landlords pay for gas or electricity and bars additional rent hikes tied to dependents.
  • Roughly 600,000 to 650,000 pre-1978 apartments are covered; prior rules allowed 3%–8% increases, up to 10% when utilities were included.
  • Officials ordered a report within 30 days on impacts to new housing and possible mitigation, with targeted repair and rehab funding for small landlords floated.