The Los Angeles County Board of Supervisors will soon review a proposal to limit rent increases in unincorporated areas, generating significant opposition from the California Apartment Association (CAA).
Proposed Rent Cap Details
-
Initiated by: Supervisor Holly Mitchell
-
Proposed Cap: 3% or 60% of the Consumer Price Index (CPI), whichever is lower
-
Current Formula: Limits increases to the lower of 8% or 100% of CPI
Opposition from CAA
-
Concerns:
-
Described as an extreme form of price control
-
Could worsen the housing crisis
-
May deter investment in rental properties
-
Increases operational challenges for landlords amidst rising costs and inflation [CAA Net].
-
Impact on Existing Properties
-
Affected Units: Multifamily housing built before February 1, 1995, in unincorporated Los Angeles County
Additional Provisions for Small Property Owners
-
Increased Allowance: Small property owners can increase rent by an additional 1% annually above the standard cap until December 31, 2026, if they meet specific criteria
Geographical Impact
-
Affected Areas: Approximately 51,700 rental units across 10,900 properties, mainly in South Los Angeles, East Los Angeles, and the San Gabriel Valley
Criticism of the LA County Report
-
The report doesn’t justify the stringent measures
-
Fails to consider financial burdens on landlords
-
Ignores increased operating costs, including insurance, maintenance, and inflation
Broader Implications
-
Potential Influence: The new policy could affect local rent control laws countywide
Key Takeaways for Landlords and Property Owners
-
Prepare for Change: Understand the potential financial impact
-
Stay Informed: Keep up with the latest Los Angeles apartment developments
-
Advocate: Join industry associations like CAA to voice your concerns
For more details on rent increases and control policies in Los Angeles, visit DCBA.
