The City Council voted to modernize the Los Angeles Rent Stabilization Ordinance (RSO) for the first time in 40 years. These updates are intended to make rent increases more predictable and to reduce the financial burden on tenants residing in the city’s 650,000 rent-stabilized units.
Key Updates:
- Establishes a minimum annual rent increase of 1 percent and a maximum of 4 percent (or 90 percent of the Consumer Price Index [CPI), whichever is lower).
- Eliminates the additional 1 to 2 percent utility surcharge for gas and electricity.
- Prohibits the 10 percent rent increase previously permitted when tenants add dependents to their household.
Previously, rent increases under the RSO ranged from 3 percent to 8 percent. Landlords were also permitted to add up to 10 percent if they covered tenant utilities and up to 20 percent for additional dependents.
These revisions are designed to stabilize housing costs, protect renters from sudden increases, and create a clearer, more contemporary framework for rent adjustments.
The City Attorney will now draft the final version of the updated ordinance. Once the draft is completed, it will be presented to the City Council for a final vote.
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