LA County Prolongs 4% Rent Hike Limit Until 2024

The Los Angeles County Board of Supervisors has extended the 4 percent cap on rent increases for certain properties for another six months. This cap is now expected to revert to its former level at the end of 2024, unless another extension is made.

Background

California’s Costa Hawkins Rental Housing Act generally restricts local jurisdictions from imposing rent control on multifamily housing first occupied after February 1, 1995.

In response, LA County passed an ordinance effective April 1, 2020, imposing an annual rent increase cap of 8 percent or less on properties in unincorporated areas not exempted by Costa Hawkins. Allowable rent increases after this date are based on rents in place as of September 11, 2018, and are tied to the Consumer Price Index for urban consumers (CPI-U), ensuring the cap remains below 8 percent if inflation is lower.

Subsequently, the Board updated the ordinance, capping rent increases at 3 percent in 2023 and at 4 percent for the first six months of 2024.

Recent Action

On June 4, 2024, the Board of Supervisors voted to extend the 4 percent rent increase cap from July 1 to December 31, 2024. The vote was 3 to 2, with supervisors Solis, Mitchell, and Horvath in favor, and Hahn and Barger opposed.

Supporters of the measure, primarily tenants, argued that rents were excessively high. Opponents, mainly small landlords, expressed their concerns through correspondence, citing rising costs outpacing the cap and the financial hardships faced during the COVID pandemic when rent increases and evictions were restricted.

Looking Ahead

In the upcoming November 2024 election, Californians will vote on potentially lifting the Costa Hawkins rent control ban. If this measure passes, jurisdictions like LA County may have the opportunity to expand their rent control regulations.