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Rent Update: A Lowered Cap on Rent Hikes

Posted on 11/21/2023
Ren sign

ONE BIG THING: AVERTING THE LARGEST MASS RENT HIKE IN LA’S HISTORY

The Background

In recent weeks, our top priority has been preventing the catastrophic 7% rent increase that was scheduled to hit tenants in rent-controlled units in February (or up to 9% if the landlord pays for utilities). 
 
Months ago, the City Council ordered an evidence-based report to give recommendations on how to fix our rent control system, but unfortunately that report likely won’t be ready until the middle of next year, meaning the 7% rent hike would have the green light to move forward. 
 
To prevent that, we introduced a motion with Councilmember Eunisses Hernandez to delay the rent hike by six months in anticipation of the report’s recommendations. But in the Housing and Homelessness Committee, our proposal was changed to remove the delay and instead lower the allowed rent increase from 7% to 4%.
 
What Happened This Week
 
After hours of debate and impassioned public comments from tenants and organizing groups like the Alliance of Californians for Community Empowerment (ACCE) and Strategic Actions for a Just Economy (SAJE), council ended up voting on 4 key issues.
 
 
1. Six Month Delay on Rent Hikes
 
Councilmember Eunisses Hernandez introduced an amendment that would have restored our original proposal to delay the rent increase by 6 months so we could receive recommendations for the evidence-based report. 
 
Unfortunately, this attempt failed, with only Councilmember Hernandez, Councilmember Nithya Raman, and us voting in support.
 
Six month freeze vote
 
2. Removing the Loophole Allowing Landlords to Increase Rent Extra for Utilities
 
We also introduced an amendment with Councilmember Eunisses Hernandez that would have removed the loophole that allows landlords to increase rent by an additional 1-2% if they provide gas/electricity. 
 
This motion failed more narrowly with a vote of 5-8. 
 
*Councilmember Rodriguez later changed her vote to “no”
 
Removing the loophole vote
 
3. Exempting Some Units from a Lower Rent Cap
 
Another amendment would have lowered the acceptable rent hike to 4% for some units, but would have kept in place the 7% cap on units run by landlords who own 12 units or fewer. 
 
This is extremely problematic not just because a 7% rent hike would be a disaster for thousands of tenants across the city, but also because the city currently has no way to verify how many units a landlord owns. 
 
Thankfully, this amendment failed with only two votes against the amendment’s withdrawal.
 
Exemptions vote
 
4. Lowering the Cap for Rent Hikes from 7% to 4%
 
The final vote was on the motion to lower the maximum acceptable rent increase from 7% (or up to 9% if the landlord provides utilities) to 4% (or up to 6% if the landlord provides utilities). 
 
This is obviously not the ideal way forward, but with all its flaws, a 4% increase instead of a 7% increase successfully prevents the biggest mass rent increase since the rent stabilization ordinance was first implemented in LA in 1979. 
 
The motion passed by a vote of 10-2.
 
 
Lowering the rent cap vote
What It All Means
 
Below is a chart showing the maximum acceptable rent increase starting in February depending on what type of unit you live in. You can learn how to see if you live in a rent controlled unit here.
 
 
Rent hike chart
 
What's Next?
 
The fight is not over. Next year, we will be having this same debate again because we still need to make permanent fixes to our rent control system. 
 
That means we need to start organizing now to build support for a system that works for the people, not the corporate landlords. 
 
 
 
Two More Quick Hits!
 
1. Safety Upgrades at Sunset and Vendome in Silver Lake!
 
New asphalt, painted lines, bollards, and more were installed by the Department of Transportation at this dangerous intersection in Silver Lake. 
 
The current state of pedestrian safety in LA is unacceptable, and we are working to make our neighborhoods safer regardless of how you get around.
 
Street improvements
 
2. Welcome to the CD13 Team – Andoni Elias Nava
 
We’re thrilled to welcome our office’s new Communications Deputy, Andoni Elias Nava! 
 
A CD13 resident in East Hollywood, Andoni has experience reaching marginalized communities through creative communications, and he also previously served as President of the East Hollywood Neighborhood Council. 
 
Andoni was born in Mexico and is especially passionate about immigration issues, homelessness and housing, and making Los Angeles safer and more accessible for bikers and pedestrians. He is a die-hard New York Knicks fan, but try not to hold that against him - it’s hard enough being a Knicks fan as it is.
 
Andoni loves to ride his bike