Los Angeles County Plans to Cap Rent Hikes in Unincorporated Areas

A new proposal aimed at protecting thousands of tenants in Los Angeles County from substantial rent hikes has advanced, despite opposition from some landlords. The L.A. County Board of Supervisors voted 3-2 to move forward with drafting changes to rent stabilization rules.

Details of the Proposal

Under the proposed changes, landlords in unincorporated areas of L.A. County would be restricted from increasing rent by more than 3% annually. Small property owners could raise rent by up to 4%, and owners of luxury units would be capped at 5%. This measure still requires a final vote before it becomes law.

Objectives and Concerns

Supervisor Holly Mitchell, who spearheaded the initiative, emphasized that the goal is to maintain affordable housing while allowing small landlords to sustain their businesses. However, some landlords argue that rising insurance costs are making it difficult to continue operating.

Mitchell stated, “My goal — always — is to slow the tide of the corporatization of rental property ownership across L.A. County. When that happens, affordability goes out the window.”

Impact and Scope

The proposed cap would apply to all rent-controlled units in unincorporated L.A. County, covering approximately 51,700 units built before 1995, predominantly in East L.A., South L.A., and the San Gabriel Valley. Additionally, the board extended a temporary 4% cap on rent increases through December, with the permanent 3% cap taking effect thereafter if passed.

Opposition from Supervisors and Landlords

Supervisors Janice Hahn and Kathryn Barger voted against the proposal, expressing concerns about overburdening smaller property owners who depend on rental income to meet their expenses. Barger commented, “We’ve once again put these struggles on the back of landlords.”

Background on Rent Stabilization Efforts

The county first implemented a rent stabilization ordinance in November 2019, using an inflation-based calculation to set maximum rent increases. However, the cap was not fully tested due to a pandemic-induced ban on rent increases. Temporary caps of 3% and then 4% were later introduced to prevent homelessness.

Concerns About Returning to the Old Calculation

The original 2019 formula, set to return in July, would have allowed rent increases of up to 4.3% this year and as much as 8% in future years. A majority of supervisors feared this would destabilize vulnerable tenants. The new proposal aims to cap rent increases at a level aligned with the consumer price index, not exceeding 3%.

Tenant and Landlord Reactions

Tenant advocates argue that any increase beyond 3% would be unsustainable for many renters. Christina Boyar from Public Counsel noted, “The majority of renters in L.A. County often have to choose between making rent and other necessities.”

In contrast, the California Apartment Association criticized the proposal as "draconian," warning it could worsen the housing crisis by discouraging investment. Landlords expressed fears of a “tsunami of displacement” due to rising insurance costs and strict rent limits, which could force them to sell their properties.

Personal Accounts

Bill Oswald, whose family owns eight apartments in Long Beach, shared his dilemma. Despite pressure from corporate buyers and rising costs, he is trying to resist selling. “I don’t think that corporations moving in and taking over these properties will help anyone whatsoever,” he said.