Posted on 10/28/2023
ONE BIG THING: PREVENTING A CATASTROPHIC RENT INCREASE
What Happening?
This February, rents for rent-stabilized units in LA are currently scheduled to increase by 7% to 9%.
Each year, RSO rents in LA are supposed to increase with inflation. But with a minimum increase of 3% each year (with an exception for COVID), the rent hikes are often much higher than inflation. From 2010 to 2019, inflation went up by 21% but median rents have gone up by 65%. For rent-stabilized units, rent during that period increased by 30%.
With the rent hike set for February, we need more time to fix LA’s approach to rent increases so we don’t see record numbers of Angelenos falling into homelessness.
Step one is to delay the rent hike by six months and then use that time to craft a system that meets the needs of our current crisis – that’s exactly what the motion we introduced this week looks to do.
Why it Matters
If we allow a 7-9% rent hike to go into effect, it would be a disaster for our housing and homelessness crisis.
A U.S. Government Accountability Office study found that a rent increase of just $100/month was accompanied by a 9% increase in homelessness!
Consider that:
- Over 60% of Angelenos are renters
- 73% of renter households are rent-burdened, spending over 30% of their income on rent.
- 47% of renter households spend over 50% of their income on rent.
- 67% of rental units are owned by corporate landlords.
This impending rent increase would devastate hundreds of thousands of LA families. This is not what LA needs right now. We need a thoughtful policy that takes into account the needs of hardworking Angelenos, and not just corporate landlords.
What's Next
The motion we introduced this week with Councilmember Eunisses Hernandez seeks to delay the rent hike by 6 months. That would allow the Housing Department to deliver a report recommending ways we can improve our system. Then, City Council can work on a thoughtful, balanced, collaborative rent control system that works for hardworking Angelenos.
Our motion will be heard this coming Wednesday by the Housing and Homelessness Committee, and if it passes, it would come to the full City Council for a vote.
Two More Quick Hits!
1. A Motion Calling for Actual Regulations for Self-Driving Cars
On Wednesday, we introduced a motion calling for substantive regulations for robotaxis so we don’t put thousands of jobs, and lives, at risk.
We can’t allow Angelenos to be test subjects for Big Tech, so even though autonomous vehicle regulation is currently supposed to happen at the state level, we’re going to partner with our City Attorney and legislators from across the state to make sure it gets done right.
2. Welcoming the Confederation of Trade Unions of Armenia to City Council
Yesterday, we were proud to honor the Confederation of Trade Unions of Armenia in City Council Chambers. Hundreds of thousands of Armenians are being forced from their homes in Artsakh by the Azerbaijan government, and in this time of crisis, Armenian unions are stepping up not just to support their workers, but to provide humanitarian aid as well. It was incredibly insightful and humbling to hear about their experiences and to spend time with them this week.