Los Angeles Mayor Karen Bass signed an updated rent stabilization ordinance Tuesday that caps annual rent increases between 1% and 4%, and removes additional utility charges for apartments built on or before Oct. 1, 1978.
During a morning news conference in South LA, Bass signed the new regulations for RSO buildings, authorizing the first major overhaul to the rent control law in more than four decades. Her action finalizes work completed by the City Council to enact such changes in recent months.
The law is expected to take effect late next month.
“No parent should have to choose between buying groceries or paying the rent, or live in fear of eviction because they have welcomed a child into their family,” Bass said in a statement. “In partnership with the City
Council, we are enacting new tenant protections and capping the rent for apartment units protected under the city’s Rent Stabilization Ordinance. This new law protects renters while also streamlining processes and resources for housing providers so that more Angelenos can not only make the rent but live full and stable lives.”
Bass was joined by Councilman Hugo Soto-Martinez and members of Strategic Actions for a Just Economy.
“Being able to afford rent is not a luxury — it’s a basic necessity. For the first time in 40 years, we are taking meaningful steps to ensure more Angelenos can afford to live where they work and continue to thrive in the communities they serve,” Soto-Martínez said in a statement. “It will support families and make sure people are not priced out of LA.”
The RSO sets annual allowable rent increases between 1% and 4%, determined by 90% of the Consumer Price Index (CPI). This cap applies to properties in the city of Los Angeles with two or more units built before Oct. 1, 1978 — more than 650,000 units in total. It also removes additional charges for electricity and gas, and prohibits rent increases for additional tenants such as babies or elderly family members under the care of the primary residents.
The change will be lower compared to the old rules that capped RSO units between 3% and 8% for annual rent hikes, and allow a 1% increase each for gas and electricity.
Landlords are still permitted to increase rent by 10% for additional non-dependent occupants.
“There are so many economic crises our city is facing right now — the ongoing impact of the wildfires, federal immigration raids, and looming federal budget cuts. SAJE commends Los Angeles City Council and Mayor Bass for supporting this new rent cap, which makes life easier for everyday Angelenos who are struggling financially,” Kyle Nelson, SAJE director of research and policy, said in a statement.
Also present were members of the Keep LA Housed coalition, which SAJE leads. A group of community members, tenant and housing advocates, and legal service providers, the coalition worked to secure the legislation.
Critics of the new RSO say it will further harm housing providers, who are already dealing with increased labor and materials costs to build new developments and maintain existing properties.
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