LOS ANGELES – The Board of Supervisors tentatively voted Tuesday in favor of two permanent rent stabilization ordinances expected to take effect April 1 in unincorporated areas of Los Angeles County, including Quartz Hill, Littlerock and Lake Los Angeles.
The vote on the ordinances, which cover both rental properties and land leases in mobile home parks, was 4-1, with Supervisor Kathryn Barger dissenting.
Under the rental ordinance, rent increases for non-luxury units will be limited to the annual change in the Consumer Price Index, with a maximum of 8%. Properties exempt from the caps on rent include units built after 1995, condominiums, single-family homes and public housing. The rental ordinance also prohibits evictions without just cause.
The mobile home ordinance limits increases on space rentals to 75% of the CPI with an 8% maximum.
Jessa Orluk, a housing program manager at the Liberty Hill Foundation, said the ordinance provides “comprehensive tenant protection … for thousands of tenants.”
Landlords countered that the regulations would stifle housing supply.
“Rent control is not the solution. It will not address affordability. It will not result in additional housing units,” said Danielle Leidner- Peretz of the Apartment Association of Greater Los Angeles.
The supervisors offered no comment of their own until after the vote, when the Department of Consumer and Business Affairs issued a statement including quotes from the board.
“Contrary to popular beliefs, economic issues are the number one reason people become homeless. Many people are faced with astronomical rent increases and can’t afford lawyers to fight them,” Supervisor Sheila Kuehl said. “The county’s actions will help residents maintain affordable homes in stable communities, and stem the tide of people into homelessness.”
Some opponents seemed resigned to regulations limiting rent increases and focused instead on specific aspects of the ordinance.
Laura Olhasso of the Pasadena-Foothills Association of Realtors, who said she represents 7,000 Realtors in the Fifth District, called the ordinance “fairly appalling.” Olhasso argued that the ordinance’s limit on passing through only 50% of the cost of property improvements to tenants would mean “apartment owners will simply not have enough cash” to keep rental units in good condition.
Both sides focused in on a requirement for landlords to provide relocation assistance for tenants who are temporarily displaced or evicted for “no-fault” reasons — which include ending a lease because a landlord’s family member is moving in or taking the property off the rental market.
That financial assistance — to be set by the Department of Consumer and Business Affairs — is expected to be higher for seniors, low-income and disabled tenants. Recommendations in board documents set payments to a senior permanently displaced from a one-bedroom apartment at $10,675 and to a low-income renter permanently displaced from a one-bedroom apartment at $12,688.
Tenant advocates said they were already seeing a surge of eviction notices and urged the board to add a similar requirement to the temporary rent ordinance, which was extended through March 31. Otherwise, they warned, landlords would have from now until April 1 to push tenants out.
“Eliminate the loophole, protect tenants,” urged Kaitlyn Quackenbush of Strategic Actions for a Just Economy.
Landlords argued that such assistance would be prohibitively expensive, especially when paired with a requirement to hire a “relocation specialist” approved by the county.
One other ask from landlords was that they be allowed to pass through the cost of any new voter-approved taxes or bond issues to tenants.
In the statement issued after the vote, Supervisor Janice Hahn said she believed the ordinance allows landlords to make a reasonable amount of money renting their properties.
“We have protections in place now that will protect renters and mobile home residents alike from unexpected rent hikes while still guaranteeing landlords a reasonable return on their investments,” Hahn said.
A series of public meetings was held from May to September, before the ordinance was drafted. Both permanent ordinances — for rental units and mobile home parks — will come back to the board for another vote before they are adopted. Board documents anticipate that vote next Tuesday.
A spokesman for Barger said he believed there should be a chance for amendments to be made.
“Property owners and landlords should have an opportunity to provide additional input and have a voice in the process as it continues toward adoption and implementation,” Tony Bell told City News Service.
Tenants or landlords seeking more information can find it by calling 833-223-RENT (7368), emailing rent@dcba.lacounty.gov or at http://rent.lacounty.gov.
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EXAV says
This rigged housing market will pop one way or another as bubbles always do. Only a matter of time. Count on it.
Real Estate Expert says
Buy the dip…
surfside 6 says
L.A. has far worse problems that what this regulation could ever correct . L.A, simply has way more people than the local housing industry can accommodate. A certain number of people will always be living outside in this town count on it.
Alby says
Its bad enough that people cant afford to rent a home due to low welfare income and a high demand for meth/crack/ect. Its so sad and unfortunate that these poor people have to limit or give up alot of their B.S. so that they could get a full-time job or a couple part-time jobs to make ends meet and afford shelter so that they could get high and [removed] [removed]…. So sad. (sigh)
Gordon says
Supporting rent control in the face of the overwhelming evidence of its long term damage to the housing market is similar to denying climate change despite the overwhelming evidence that it is occurring and having major negative impacts. The proper policy response to the housing affordability crisis is to 1) increase housing supply, and 2) provide direct monetary assistance to households faced with unaffordable rents until the new supply is in place to meet demand.
Don't know says
Why are there exemptions? This is just another feel good vote that will change nothing.
Slick says
Shame on Kiki and Monica, how do U guys sleep at night knowing there’s innocent families living on the streets with no where to go.
All U greedy monsters care about is Increasing rents and making the landlords rich on $900-$1,399 rental property.
Housing is a right, it’s NOT a privilege
By the way, LA is doing way better with their rental laws like a good human being
vs 2 selfish [removed] who can’t their minds straight.
Laughing says
Housing is actually not a right.
It is earned in one way or another.
Caves had to be found and critters removed.
Hunter/gathers built tents and other portable homes.
Mud and reed homes/block/adobe involved gathering and building.
People have lived in covered wagons/RVs/cars for a very long piece of history.
Log cabins were built by getting land, cutting down trees, and carving notches.
More modern homes still have to be built which usually requires money (or a combination of earlier methods)
The thing is someone has to build the homes, and those who don’t build homes have to purchase from others or rent from others that can afford to build.
That or fall back to mobile tents/RVs/cars and caves.
What is interesting is the recent research showing Los Angeles has about 40K more empty houses (house not currently occupied) than they do homeless. Many of the home are second homes/apts are second places of residence for business or vacation and not the primary home. That is a lot of empty space.
Prices everywhere are artificially high… we need a fix for that. Too many want to be richer than the next person.
monica says
Not good for landlords, who are not making that much revenue, to begin with.
EXAV says
Yeah, those landlords that have doubled or tripled rents in the last 8 years are really hurting. Oh, won’t somebody think of the landlords?
That’s about the weakest argument of all the weak arguments I have heard concerning the housing crisis.
Kiki says
They should raise the rents higher so many unwanted people can leave far far away….