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Rent Control

CALIFORNIA

 Los Angeles

Ordinance Adoption Date 4/21/79; (Los Angeles Municipal Code, Chapter XV), latest amendment 2/19/91.

Exceptions 

 Units constructed (or substantially renovated with at least $10,000 in improvements) after 10/l/78, "luxury" units (defined as 0,1,2,3, or 4+ bedroom units renting for at least $302, $420, $588, $756, or $823, respectively, as of 5/31/78), single-family residences, except where three or more houses are located on the same lot. [Sec. 151.02.G,M.]

 Administration 

 Appointed seven-member Rent Adjustment Commission, 400 South Main, 1st floor, Los Angeles, CA 90013. For information regarding ordinance, call 213-847-7368

Registration

Required. [Sec. 151.1 1.B.] Tenant may defend any Unlawful Detainer action on the basis of the landlord's   failure to register the property [Sec. 151 .09.F].

Rent Formula

Except with permission of Commission or Community Development Department, rents may not be increased by more than a 3% to 8%, percentage based on the "Urban All Items Consumer Price Index" for the Los Angeles/Long Beach/Anaheim/Santa Monica/Santa Ana areas. The figure is published each year by the Community Development Department on or before May 30th, and applies to rent increases to be effective the following July 1st through June 30th of the next year. The actual percentage is calculated by averaging the CPI over the previous 12‑month period beginning the September 30th before that, but in any event cannot fall below 3% or exceed 8%. In addition, if the landlord pays for gas or electricity for the unit, she may raise the rent an additional 1% for each such type of utility service. [Sections. 151.06.D, 151.07.A.6.]

Individual Adjustments

Landlord may apply to the Rent Adjustment Commission for higher increase to obtain "just and reasonable return." (This does not include "negative cash flow" based on recent purchase, but does include negative "Operating expense," not counting landlord's mortgage payment.) [Sec. 151.07.B.] Also, landlord may apply to Community Development Department for permission to pass on to the tenant 50% of the cost of capital improvements not directly benefiting the landlord. For example, new roof costs would be considered, but not costs of renovations to manager's units or advertising signs spread out over five or more years. [Sec. 15 W.A.]

Rent Increase Notice Requirements

Landlord must post conspicuously or give tenant a copy of current registration statement showing that the property is registered with Board. [Sec. 1 51.05.A.] A Landlord who applies to the Board for a rent higher than maximum is required to provide written justification for the difference. [Sec. I 51.05.C.]

Vacancy Decontrol

Landlord may charge any rent after a tenant either vacates voluntarily or is evicted for nonpayment of rent, breach of a rental agreement provision, or to substantially remodel. Controls remain if landlord evicts for any other reason, fails to remodel after evicting for that purpose, or terminates or fails to renew a subsidized-housing lease with the city housing authority. Once a vacated unit is re-rented, it is subject to rent control based on the higher rent. [Sec. I 51.06.C.]

Eviction 

Landlord must show just cause to evict.

Penalties

Penalties for violation of the ordinance, including failing to include proper information in eviction notices, is a misdemeanor punishable by maximums of $500 fine and six months imprisonment. [Sec. 15 1.1 O.B.] Tenant may sue in court for three times any rent in excess of legal rent collected, plus attorney fees. [Sec. 15 1 .1 0,A.]

Other Features

Landlord must pay 5% annual interest rate on deposits held over a year. Interest payments need only be made every five years, and when the deposit is refunded at end of tenancy. (This part of the ordinance, however, is not being enforced at this time, while a legal challenge proceeds through the appeals courts.)

Los Angeles also has a Rent Escrow Adjustment Program (REAP) ordinance that applies to all rent-controlled units. Under this ordinance, a tenant whose landlord has received a 30-day notice from local health or building inspectors to correct serious housing code violations may withhold rent and pay it to a city escrow fund, if the landlord has failed to correct the violation within the 30-day period.