Overview
- The council voted 12-2 to rewrite the rent increase formula for roughly 650,000 rent-stabilized apartments, with one member recusing.
- Annual increases would be limited to 4% based on 90% of the regional CPI with a new 1% floor, replacing rules that guaranteed at least 3% and allowed up to 10% in some cases.
- The reform eliminates the additional 2% increase for landlords who pay tenants’ gas or electricity bills.
- The changes apply to units covered by Los Angeles’ Rent Stabilization Ordinance, generally apartments built before October 1978 that house about 42% of city households.
- Tenant groups praised stronger protections, while landlord organizations warned the tighter cap will strain building finances and deter new investment.