The Los Angeles City Council today granted final approval to a proposal to permanently remove “substantial remodel” as a just cause for eviction in non-RSO (non-rent-controlled) properties governed under the Tenant Protection Act.

This action on July 1, 2025, follows the city’s earlier unanimous approval of a temporary moratorium on such evictions while a permanent policy was under review.

The Los Angeles Housing Department had outlined three policy options for consideration. The council ultimately adopted the most restrictive of the three: complete elimination of the ability to reclaim a unit for substantial renovation.

The California Apartment Association opposed this direction. In a letter, the association urged city leaders to:

  • Preserve a clear and workable process for substantial rehabilitation in AB 1482 properties.
  • Launch a broader review and reform of the Primary Renovation Program under the Rent Stabilization Ordinance.
Fred Sutton

“The Tenant Protection Act established a streamlined process for renovating and remodeling aging buildings, which guarantees monetary assistance to tenants if specific rehabilitation conditions are met. Substantial remodels are not minor upgrades,” said Fred Sutton, senior vice president of local public affairs for CAA.

Importantly, the Housing Department’s own report highlights two troubling realities:

  • The RSO’s existing renovation process is rarely used, despite being relevant to the oldest and most maintenance-intensive housing stock.
  • Rent adjustment and cost pass-through requests are taking over a year for approval, creating further disincentives for investment and property upkeep.

Read the ordinance here

An updated Industry Insight compliance paper now reflects this permanent removal of substantial remodel as a just cause basis and includes information about new notice requirements under the city’s right to counsel ordinance.