LA City Council Opted Not to Extend Rent Freeze & Considers 4% Rent Increase

In a recent decision, the Los Angeles City Council Housing & Homelessness Committee has opted not to extend the freeze on rent increases, potentially leading to a near 4% uptick. This policy applies to all rent-stabilized units in the city, encompassing approximately 75% of the rental properties.

Committee Deliberates on Rent Freeze Extension

The Housing & Homelessness Committee, chaired by Councilwoman Nithya Raman, deliberated on the extension of a pandemic-related rent freeze that had prohibited landlords from raising rents on rent-stabilized units since March 2020. During the hearing, Councilman Bob Blumenfield proposed an amendment to the city's Rent Stabilization Ordinance, suggesting rent increases starting in February, based on the Consumer Price Index from October 2022 to September of this year. As of September, the CPI had increased by 3.7% over the past 12 months. The proposal garnered approval from three out of five committee members and will proceed to the entire City Council for a vote.

Discussion of Rental Increase Scenarios

Alternatively, the committee considered allowing rent increases based on the CPI for the two-year pandemic period, which would have led to a 7% monthly payment hike. However, Blumenfield clarified that the amendment would not permit a 7% jump. He emphasized the need to find a middle ground between tenants struggling with high rents and property owners aiming for a reasonable return on their investments.

Extending the Freeze and Public Sentiment

Councilman Hugo Soto-Martínez proposed a six-month extension of the rent freeze until July 31, 2024. He argued that this would give the Los Angeles Housing Department more time to study a permanent formula for allowable rent increases in rent-stabilized units. During the committee meeting, members of the public, both landlords and tenants, passionately voiced their concerns. Landlords held up "No Freeze" and "We House LA" flyers, urging council members not to extend the rent freeze. Meanwhile, tenants shared their financial hardships and reasons for supporting rent caps.

Council Members Express Diverse Views

After listening to public comments, council members expressed their skepticism regarding the proposed extension before voting. Councilwoman Monica Rodriguez, representing the northeast San Fernando Valley, voiced her opposition, citing past property takeovers due to the recession and emphasizing the challenges of shifting the burden of affordable housing onto private property owners. The final decision now rests with the City Council, as the debate over rent increases in Los Angeles continues.