A staff report released by the City of Los Angeles recommends new limits on ratio utility billing systems (RUBS) in rent-controlled housing and outlines expanded disclosure requirements for utility billing at other properties.

While an original City Council motion on the issue focused on disclosure and transparency, the staff report recommends broader changes, particularly for properties subject to the city’s rent control law, known as the Rent Stabilization Ordinance.

For rent-controlled properties, the report recommends prohibiting the use of RUBS and other unmetered utility allocation methods. Under the proposal outlined in the report, utilities currently billed through RUBS would instead be treated as rent under the Rent Stabilization Ordinance, with a one-time rent adjustment process intended to account for utility costs already being paid by tenants.

The report also includes recommendations for non-RSO properties. For those units, the Housing Department does not recommend a prohibition on RUBS but instead proposes extensive new disclosure requirements. Those recommendations include detailed written explanations of billing methodologies, itemized breakdowns of charges, expanded access to master meter bills, and formal dispute-resolution timelines.

The staff report stems from a City Council motion adopted in 2022 that asked the Housing Department to report back on options for improving transparency in third-party utility billing. The motion did not call for eliminating RUBS or redefining utilities as rent.

Importantly, the document released by the Housing Department is a staff report only. No ordinance has been introduced, no hearing has been scheduled, and no timeline has been established for City Council consideration of the recommendations.

The California Apartment Association is closely reviewing the report and gathering feedback from housing providers. The association supports the use of RUBS when paired with clear disclosure and transparency requirements, noting that utility billing systems tied to resident usage can encourage water conservation.

Utility billing practices and rent definitions are frequently cited across jurisdictions, making the report relevant beyond Los Angeles.

At this stage, the issue remains at the staff-report level, and no policy changes are imminent. CAA will continue to review the report and keep members informed of any future developments.