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The Los Angeles City Council has voted to make major changes to rent control, hoping to make housing more affordable in the city.
In a historic 12-2 vote on Wednesday, the Los Angeles City Council decided to cap annual rent increases. Updating the Rent Stabilization Ordinance formula to set the annual increase of rent to 4% for roughly 650,000 units across the city.
Previously, the formula to set rent was 60% of the consumer price index, but now it is being increased to 90%. Additionally, the ruling will allow an additional 2% increase for landlords who cover utilities.
Nithya Raman, chair of the council’s Housing and Homelessness Committee, ahead of the vote, said, “Extraordinary rent increases are driving people out of the city.”
The RSO covers apartments built on or before Oct. 1, 1978, and lawmakers have spent months debating how to best alleviate residents from additional rent-related burdens. While also taking into account how to best balance the needs of housing providers.
Raman said, “What we have before us right now is an opportunity to make L.A. more affordable, because when people can afford to stay in Los Angeles this entire city thrives.”
Landlords and advocates against the measure say the updated formula will make it more expensive to provide housing.
To relieve any additional burden to landlords, they are also putting into effect an increase in funding for “Mom and Pop” landlords. Owners with 2-10 units will receive support for repairs and rehabilitation.
Most Angelenos are renters, and more than half spend more than 30% of their income on paying rent. With 1 in 10 residents using 90% of their income to cover rent.
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Tara Nguyen
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