Angelenos living in rent-controlled apartments may see monthly rent payments climb slightly higher than expected in the coming months.
In the city of Los Angeles, price hikes for most apartments built before 1978 are regulated by the Rent Stabilization Ordinance, and for the last decade have been capped at 3 percent annually. But in the 12-month period starting in July, landlords will be permitted to raise rents up to 4 percent.
Under the ordinance, allowable rent increases are based on LA’s Consumer Price Index, a measure of inflation and cost of living. Depending on the price index, landlords are permitted to raise rents between 3 percent and 8 percent.
In practice, that’s meant that in recent decades price increases were fixed at 3 percent almost every year. Since 1993, the city has only allowed rent hikes above 3 percent in three years. The last time it happened was in 2009.