LOS ANGELES — The City Council Tuesday will consider adopting an ordinance that would limit rent increases on rent-stabilized units to 4%, or up to 6% if landlords cover gas and electric costs.

On Nov. 14, the council voted 10-2 to move forward with a proposal intended to limit rent hikes for properties that are subject to the city's rent- control law. According to the draft ordinance, the law would limit rent increases from Feb. 1 to June 30, 2024.

What You Need To Know

  • The council on Tuesday will consider adopting an ordinance that would limit rent increases on rent-stabilized units

  • During the last meeting, the city council voted 10-2 to move forward with a proposal intended to limit rent hikes for properties that are subject to the city's rent-control law

  • The city's formula would allow a rent increase of 4%, up to 6%, instead of what would have been a 7%, up to 9%, increase

  • The council's action was prompted by the pending Jan. 31, 2024, sunset of a pandemic-era rent freeze placed on rent-stabilized units

Council members instructed the Housing Department, in consultation with the United to House LA Citizens Oversight Committee, to develop programs assisting landlords and tenants, as well as small housing providers, for the maintenance and preservation of rent-controlled units.

The council also amended its proposal to include a report back on establishing a rule or policy that would help distinguish mom-and-pop landlords from corporate landlords, in an attempt to ensure small landlords can receive city resources to stay afloat.

Council members Paul Krekorian, Curren Price and Katy Yaroslavsky recused themselves from the November vote because they are landlords. Council members Traci Park and John Lee voted against the item.

The council's action was prompted by the pending Jan. 31, 2024, sunset of a pandemic-era rent freeze placed on rent-stabilized units.

The city's 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.

Under the proposal set for consideration Tuesday, the 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 Councilman Bob Blumenfield, who introduced the proposal, by using the most recent consumer price index, the formula would allow a rent increase of 4%, up to 6%, instead of what would have been a 7%, up to 9%, increase.

"So, that's why I put that forward in committee, because it didn't change the formula. It merely changed the window that we look at that formula to make it the most updated window," Blumenfield said.

Councilman Hugo Soto-Martinez originally proposed extending the rent freeze, but that idea did not garner enough support.

The Los Angeles County Board of Supervisors earlier in November took similar action, extending but slightly increasing a cap on rent increases allowed for rent-controlled apartments in unincorporated areas.

The board last year imposed a 3% cap on rent increases, but that cap was set to expire at the end of the year. The board voted to extend the cap until June 30, 2024, but agreed to increase the allowable rent increase to 4%.