The Los Angeles County suburb of Baldwin Park recently considered tightening the allowable rent increase under its draconian rent control law.
The California Apartment Association not only derailed this proposal but persuaded the City Council to raise its annual rent cap to 5%. The council ratified the decision Wednesday.
Until now, the city had capped rent increases at the change in the local consumer price index, or CPI, with a maximum increase of 3%. City staff wanted to lower the limit to 80% of CPI with a 3% max and eliminate a guarantee that owners can raise rents by 1%, even if inflation remains flat or drops.
CAA told council members that landlords already are struggling and that it’s unfair to limit rent increases to 3% when CPI would exceed 5% this year.
A majority of the council agreed and adjusted the cap upward.
“This was a major victory for rental property owners in Baldwin Park,” said Matt Buck, vice president of local of public affairs for CAA. “Council members clearly heard the message that landlords are facing huge challenges and need help.”