The California Apartment Association this week finished updating the consumer price index rates for all areas of the state. The figures are used for calculating maximum allowable rent increases under AB 1482 (the Tenant Protection Act).
CAA’s CPI Calculator also has been revised to incorporate legislative changes that make it easier to determine the allowed increase.
On Aug. 31, 2020, the California Legislature revised the CPI provisions of the Tenant Protection Act to address the issue of delay in the availability of the CPI numbers. AB 1482 restricts rent increases in any 12-month period to no more than 5% plus the percentage change in the cost of living (CPI), or 10%, whichever is lower. As originally enacted, the law defined the “percentage change in the cost of living” as the percentage from April 1 of the prior year to April 1 of the current year. This created problems with calculating rent increases because the April figures are often not available until June. Rental housing providers who wanted to increase rent effective between April and June did not have access to the correct CPI figure.
As revised, the Tenant Protection Act applies the April CPI to rent increases that are effective on or after Aug. 1 of each year. The CPI percentage must also be rounded to the nearest one-tenth of a percent. This means that the CPI you must use will depend on when the rent increase will be taking effect, whether before August or on or after Aug. 1 of any calendar year.
Which CPI to use based on the rent increase effective date:
|Rent Increase Effective Date||Use the CPI from|
|Today to July 31, 2021||April 2020|
|August 1, 2021 to July 31, 2022||April 2021|
|August 1, 2022 to July 31, 2023||April 2022|
To find out the applicable CPI based on the county in which your property is located, go to CAA’s website and use the “Find your CPI” tool in this link.
CAA members can find a plethora of compliance material for Tenant Protection Act on the association’s AB 1482 page, including tools to help rental housing providers determine whether the rent cap and “just cause” eviction provisions of the law apply to their property.
You can use the widget below to determine whether the rent caps and/or just cause provision of AB 1482 apply to your property.