Los Angeles strengthened its rent stabilization law for the first time since 1985 Wednesday, setting a 4% ceiling on annual rent increases for a massive portion of the city’s housing stock, reported the Los Angeles Times. The historic vote by the L.A. City Council to update the Rent Stabilization Ordinance will help set rents in the coming decades for nearly 650,000 households who live in units built before 1978, a renter population that includes nearly half the city’s residents.
Two councilmembers voted against the new rules, arguing that they would tip the scale against landlords and could chill development. “This sets the message: do not build here. Do not invest in Los Angeles. Do not keep your units on the market,” said Councilmember John Lee, who voted against the new cap with Councilmember Bob Blumenfield.
The maximum annual rent increase for rent-stabilized apartments will now range between 1% and 4%, depending on inflation. That’s down from current caps of 3% to 8% and as much as 10% if the landlord pays for utilities.
The measure’s proponents said the changes were necessary for tenants struggling to make rent every month, reported the Times. “The city has not done enough to protect renters,” said Councilmember Nithya Raman, who wrote the proposal. “What we have 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.”
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