The Los Angeles City Council recently voted to reform its rent control regulations for the first time in 40 years, limiting annual rent increases to 4% regardless of inflation rates. Previously, landlords could raise rents by at least 3%, sometimes exceeding 10% during high inflation periods. The new rules, supported by 12 of the 15 council members, eliminate an additional 2% increase that landlords could charge if they cover utility expenses.
Council members emphasized the need for these changes to prevent displacement and homelessness among renters, highlighting that many tenants struggle with rent costs outpacing income. However, some landlords opposed the reforms, citing potential negative impacts on property development and maintenance costs.
The new guidelines set a minimum increase of 1% in low-inflation years and will affect the majority of renters in older buildings. Before implementation, the changes must be drafted by the City Attorney’s Office for a final vote. The council aims to address the homelessness crisis, with around 43,500 individuals currently homeless in the city.
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