The Los Angeles County Board of Supervisors on Tuesday will consider a proposal to significantly reduce maximum allowable rent increases in unincorporated areas, a move sparking strong opposition from the California Apartment Association.  

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Introduced by Supervisor Holly Mitchell, the measure would cap rent increases at 3% or 60% of the Consumer Price Index, whichever is lower. 

CAA argues that the proposed cap constitutes an extreme form of price control that would worsen the housing crisis, deter investment in rental properties, and make it more challenging for landlords to operate amid rising costs and inflation. Currently, the county’s rent control formula limits annual rent increases at the lower of either 8% or 100% of CPI. The county’s rent cap applies to multifamily housing built prior to Feb. 1, 1995, in unincorporated areas. 

A recent county report examining the rent control formula has also drawn criticism from the association. CAA contends that the report fails to justify the stringent measures proposed, arguing that it does not adequately consider the financial burdens on landlords. CAA argues that reducing this to 3% or 60% of CPI is unjustified and does not account for increased operating costs, including rising insurance premiums, maintenance costs, and inflation. 

The proposed changes include specific provisions for small property owners, allowing them to increase rent by an additional 1% annually above the standard cap until Dec. 31, 2026, provided they meet certain criteria. 

The updated ordinance would apply to approximately 51,700 rental units across 10,900 properties in unincorporated Los Angeles County, with a significant portion of these units located in South Los Angeles, East Los Angeles, and the San Gabriel Valley. 

While the proposed policy targets unincorporated areas of Los Angeles County, CAA warns that its effects could influence local rent control laws countywide.  

The meeting to discuss the proposal is scheduled for 9:30 a.m. on Tuesday, June 4, at 500 W. Temple St., Los Angeles.