City of Los Angeles Rent Stabilization Policy Update

LOS ANGELES— Last week, LA City Council passed an amendment to the Rent Stabilization Ordinance, marking the first major update to the law in more than 40 years. The new formula sets a 1% floor and 4% ceiling, tied to 90% of the Consumer Price Index or CPI, creating a balanced approach that protects tenants while supporting housing providers.This policy applies to units built before 1978, which make up housing for nearly half of Los Angeles residents. With most Angelenos renting, and more than half spending over 30% or more of their income on rent, stability and predictability in rent adjustments are critical. One in ten residents spends 90% of their income on rent, underscoring the need for reform. 

“By setting a floor above zero, there is a steady framework that enables small landlords, especially family-owned property owners, to cover essential maintenance and operating costs. With a ceiling of 4%, it allows tenants to plan for increases with more certainty,” said Councilmember Tim McOsker.