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LA Board of Supervisors votes to extend 4% rent increase cap

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LA Board of Supervisors votes to extend 4% rent increase cap

The Los Angeles County Board of Supervisors voted Tuesday to extend a 4% rent increase cap for rent-controlled apartments in unincorporated areas, mainly in South and East Los Angeles and the San Gabriel Valley.

The board voted 3-2 to extend the cap for another six months, through the end of the year, to help tenants who may still be facing setbacks from the COVID-19 pandemic and without the protections would likely face significant rent increases.

The province froze rent increases for rent-controlled units in March 2020, during the COVID-19 pandemic. The freeze was extended several times.

In November 2022, a temporary 3% cap on annual rent increases was approved by the board and the following year another extension was approved with a cap increase to 4%.

The purpose of the cap was to keep residents housed as pandemic tenant protections fell away.

There were two dissenters in Tuesday’s vote. Supervisor Kathryn Barger voted against extending the cap because she said it would also affect landlords hit by rising costs.

“The rent cap formula chosen by the majority of our board for next year does not include mortgage costs. Inflation is real. This places a further burden on property owners who also have to pay bills – such as rising homeowners insurance – and struggle to keep up with costs is unbalanced and the wrong approach,” Barger said.

The regulator said solutions should be concentrated elsewhere, such as developing more new homes.

Supervisor Holly J. Mitchell, who introduced Tuesday’s motion, said residents continue to face economic hardship, inflation and increases in housing costs.

“Low-income Black and brown residents, who are disproportionately renters, have suffered enormous public health impacts, job losses and higher healthcare costs during the pandemic. As a result, many are still facing significant rental debt,” Mitchell said.

“As many tenants make payment arrangements for unpaid rent, their monthly payments will increase even if their base rent remains the same.”

There are approximately 109,000 renter households in unincorporated areas, with approximately 51,700 units across 10,900 properties subject to rent stabilization, according to the motion

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