Rent Hikes Could Be Smaller for L.A. Tenants Under New Proposal by Councilman
Alarmed about people being “squeezed out” of their homes, Los Angeles City Councilman Mike Bonin wants to clamp down on rent increases for hundreds of thousands of tenants, tightening the rules under a longstanding city ordinance.
Decades ago, Los Angeles decided to limit how much rents could be hiked annually for tenants living in older buildings. Under the Rent Stabilization Ordinance, annual hikes were based on the consumer price index — a typical measure of inflation — and capped at a maximum of 8% annually.
Even if there was little inflation, however, landlords could still increase rents by 3% annually. Tenant activists complain that in the aftermath of the recession, those hikes have routinely outpaced inflation. Bonin complained that other cities with rent control — including San Francisco and Santa Monica — do not allow the same minimum hikes.
In Los Angeles, tenants saw that their rents “still went up 3% while their wages and their incomes did not,” said Bonin, who represents Westside neighborhoods including Venice, Mar Vista and the Pacific Palisades.
Read the full story on LATimes.com.