This article was posted on Friday, Jun 14, 2024
los angeles apartment

On June 4th, the Los Angeles County Board of Supervisors made their decision on what rent increases will be next year. The current 4% cap was extended through December 31, 2024.

Assuming the ordinance passes the required second vote, beginning in January, rent increases for apartments subject to unincorporated LA County rent control will be drastically reduced.

This change will limit increases in covered units to 60% of the annual change in the consumer price index, with a ceiling of 3%.

Using the current CPI average that California uses for LA/Orange counties of 3.9%, the math says that the increase would be 2.34%.

Under this plan, housing providers with 10 units or less will be able to add an additional 1% to the cap imposed on larger properties. Whether this will be an exception to the 3% cap remains to be addressed in the details.

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The proposal was put forward by Supervisor Holly Mitchell, even though she was quoted as making this seemingly contradictory statement: “We all know that costs have gone up for everybody. Insurance cost increases are astronomical across the state, particularly here in L.A. County.”

Supervisors Lindsey Horvath and Hilda Solis joined Mitchell in support of the plan. Supervisors Kathryn Barger and Janice Hahn voted against it, with Barger arguing that high rents stem from sluggish housing construction, asserting: “We are not going to solve the affordability crisis by layering different caps. We need to continue to streamline and expedite our review and entitlement processes to build housing in a timely manner.”

Housing providers across California seem to be casualties in the contest between local governments to see which one can impose the most restrictive regulations and the lowest rent increase amounts, while also increasing the time and expense for owners to reclaim their units.