Allowable Rent Increases

2021 CURRENT ALLOWABLE RENT INCREASE FIGURES

22allowable-rent

ALLOWABLE Rent Increase Limits

  1. The maximum increase within a 12- month period for Residential Properties with 5 or more units is 3% or the cost of inflation (whichever is greater), as measured by the Consumer Price Index (CPI).
  2. The maximum increase within a 12- month period for Residential Properties with 4 or less units is 5% plus the cost of inflation, as measured by the Consumer Price Index (CPI).

Units Exempt from the Just Cause Eviction Regulations AND the Rent Cap Limitations

  • Units that have been issued a certificate of occupancy within the last 15 years (this applies on a rolling basis - i.e.. a unit constructed on January 1, 2006, is not subject to the Housing Protection Ordinance until January 2, 2021).
  • Dormitories owned and operated by an institution of higher education or K-12 school.
  • Owner-occupied duplex in which one unit serves as owner’s principal place of residence, who occupied the unit prior to the tenant, and continues occupancy.
  • Housing provided by a nonprofit hospital, church, extended care facility, licensed extended care facility for the elderly, or an adult residential facility.
  • Units restricted by a deed, regulatory restrictions, or other recorded document limiting the affordability to low or moderate-income households.
  • Transient and tourist hotel occupancy as defined by Civil Code Section 1940(b).
  • Single-family homes and condominiums are only exempt if both (A) and (B) apply:
    1. The property is not owned by one of the following:

(i) a real estate trust, or

(ii) a corporation, or

(iii) an LLC with at least one corporate member.

                        -----AND----

  1. The landlord notified the tenant in writing that the tenancy is not subject to the “just cause” eviction protections and rent increase limitations as specifically described in Civil Code Sections 1946.2(e)(8)(B)(i) and 1947.12(d)(5)(B)(i). 

Note: All Section 8 rent increases must be submitted to the Section 8 Division to be processed.


Below Market Rent Increases

  • If an Owner of any residential real property containing five or more dwelling units charges an existing tenant rent for a rental unit that is less than eighty percent (80%) of Fair Market Rents, upon approval of the Program Administrator, the Owner may increase the percentage by an additional five percent (5%).

    The Program Administrator shall only approve Rent increases for 12-month periods under this section until the Rent reaches or exceeds eighty one percent (81%) of Fair Market Rents.
     
  • If an Owner of any residential real property containing four or fewer dwelling units charges an existing tenant rent for a rental unit that is less than 80% of Fair Market Rents for a comparable unit, upon approval of the Program Administrator, the Owner may increase the percentage by an additional two percent (2%), not to exceed ten percent (10%).

    The Program Administrator shall only approve rent increases for 12-month periods under this section until the rent reaches or exceeds eighty one percent (81%) of Fair Market Rents.
     
  • The U.S. Department of Housing and Urban Development’s Office of Policy Development and Research’s (HUD PD&R) annually releases its Fair Market Rents for Los Angeles County for October 1st.  The chart below shows the Fair Market Rents (FMR) for Fiscal Year 2021 and the 80% below threshold:

UNIT TYPE

FAIR MARKET RENT

80% OF FMR

0 BEDROOMS

$1,369.00

$1,095.20

1 BEDROOM

$1,605.00

$1,284.00

2 BEDROOMS

$2,058.00

$1,646.40

3 BEDROOMS

$2,735.00

$2,188.00

4 BEDROOMS

$2,982.00

$2,385.60

5 BEDROOMS

$3,429.00

$2,743.44


To access the form, please click on the following link: Below Market Rent Increase