LOS ANGELES (CNS) — The City Council on Wednesday delayed until next week its deliberation and vote on a proposal meant to lower expected rent increase for properties under the city’s rent-control law.

What You Need To Know

  • The LA City Council delayed its vote on a proposal to lower rent increases for rent-controlled housing until next week

  • Councilman Hugo Soto-Martinez aid more time was needed for the item to be considered, including potential recusals or to allow other amendments to be introduced

  • Landlords who spoke against extending the rent freeze cited financial concerns

  • When the council convenes next Tuesday, members will consider a proposal to allow a 4% rent increase, or up to 6%

Councilman Hugo Soto-Martinez moved to continue the item until Nov. 14, which was backed by his colleagues. According to a representative from Soto-Martinez’s office, the councilman said more time was needed for the item to be considered, including potential recusals or to allow other amendments to be introduced.

Several tenants and landlords expressed their reasons for extending or terminating the pandemic-era rent freeze placed on rent-stabilized units.

Casper Martin, speaking on behalf of his parents who own a six-unit apartment in the Pico-Robertson area, says their building is under rent control. Though happy to play by the rules, he said costs have gone up.

“In particular, they’ve spent over $100,000 during the pandemic to add security cameras, capital improvements, improved the landscaping and provide better lighting,” Martin said. “All of this was invested in the property, and they’re not looking to refill their coffers. What they would like to do is be able to keep up ... with inflation.”

Martin explained that his parents love being landlords, and rent units below the market rate, but they can’t do it without being able to raise the rent at least a little.

Other landlords who spoke against extending the rent freeze also cited financial concerns.

Renters like Amelia Kreski, a 10th District resident and member of the Alliance of Californians for Community Empowerment, urged the council to extend the freeze or limit any rent hikes.

Kreski, 70, said she lives off her husband’s pension and it will not be enough to cover a rent increase. She said many Angelenos like herself cannot afford higher rent.

Housing advocates and renters emphasized that any rent increases could lead to an increase in homelessness.

When the council convenes next Tuesday, members will consider a proposal to allow a 4% rent increase, or up to 6% if landlords cover gas and electric costs.

On Nov. 1, the five-member Housing and Homeless Committee voted 3-2 to approve a revised proposal regarding rent hikes for rent-stabilized units. Council members Monica Rodriguez and John Lee voted against it.

The law, called the Rent Stabilization Ordinance, was adopted in 1979 and applies to rental housing built before 1978. It limits the allowable increase for rent-controlled units, tying rent increases to the consumer price index, a measure of inflation.

The rent freeze was enacted in the early stages of the pandemic, and is set to expire on Jan. 31, 2024. Councilman Bob Blumenfield amended a motion Soto-Martinez introduced on Oct. 25 that sought to extend the freeze on rent- controlled units.

Rather than extend the rent freeze, the amendment requests that the city attorney, with the assistance of the Housing Department, draft an ordinance that would temporarily set rent increases for rent-controlled units from Feb. 1 to June 30, 2024.

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Rent hikes would be calculated using a formula outlined in the city's rent control law, using the consumer price index from October 2022 to September 2023 instead of from October 2021 to September 2022.

According to Blumenfield, by using the most recent consumer price index the formula would allow a rent increase of 4% in stead of what would have been a 7% increase.

"So, it would not allow for a rent freeze because legally we can't do that, and the Supreme Court has said that our COVID-19 powers are over," Blumenfield said. "But it would not allow us to jump to 7%, which is based on the data."

Additionally, the amended motion would instruct the Housing Department in consultation with the United to House LA Citizens Oversight Committee to develop programs assisting landlords and tenants, as well as for small housing providers for the maintenance and preservation of RSO units.

Soto-Martinez's proposal to extend the rent freeze was intended to provide more time so a study reviewing the city law's formula for determining rent hikes could be completed, and help determine what adjustments to the formula may be needed.

Blumenfield said the study will not be completed in time to make adjustments before the rent freeze ends