Bell Gardens Adopts Local Rent Control Ordinance – Effective October 12, 2022

Annual Allowable Rent Increases Capped at Just 4%

At the September 12^th Bell Gardens City Council meeting, the City Council adopted an ordinance establishing strict rent control and just cause eviction requirements. The ordinance goes into effect on October 12, 2022. It is important to note that since April 25^th the City has had a rent increase freeze in effect pending the establishment of permanent local rent control.

Some of the key ordinance provisions are summarized below. We encourage members with properties in the city of Bell Gardens to review the full details of the ordinance and to consult with an attorney regarding specific tenancy questions.

Limitations on Annual Rent Increases:

• Establishes limits on permissible rent increases to one rent increase within any 12-month period, with an annual rent increase cap of 50% of the Change in the Consumer Price Index (CPI) or 4%, whichever is less.
• The base rent is the rent that was in effect on April 11, 2022.  This means that any allowable rent increases are to be calculated using the rent amount that was in place on April 11, 2022.  The base rent does not apply to vacancies occurring after the base date.
• Allows rental housing providers with existing renters who are paying below market rents that are less than 80% of Fair Market Rent (FMR) for a comparable unit to increase the rent by an additional up to 3% until the rent equals or exceeds 80% FMR for a comparable unit, upon approval from the City’s Department of Community Development.

Exemptions: Owner must submit an application to the City’s Department of Community Development to be granted an exemption.

• The ordinance provides limited exemptions from the rent control provisions, including dwelling units with a certificate of occupancy or equivalent permit for residential occupancy issued after February 1, 1995.
• Any dwelling unit that is alienable separate from the title to any other dwelling unit, including single family homes, condominiums, and townhouses.
• Owner-occupied residential real property with no more than 3 rental units, where the owner occupies one of the units as their primary residence since the beginning of the tenancy. The exemption remains in place as long as the owner continues to reside in the unit as their primary residence.

Rent Registration

• On or before September 30, 2023, and each year thereafter, rental property owners are required to register rental units in the City through the City’s rent registry and disclose information about the property and ownership details, rent paid, renter information, and housing services provided. After the initial registration of the unit, the owner will be required to update the registration within thirty days of the start of a new tenancy or change in tenancy or ownership. The requirement also provides for broad allowances for the City to require disclosure of additional confidential information, under a provision stating, “any additional information reasonably required by the Department to implement this Chapter.”
• In order to fund the administration of the rent control ordinance, rent registration fees, in an amount yet to be determined, would be paid for by the owner with an allowable pass-through of 50% to renters.
• Owner-occupied residential real properties containing no more than four (4) dwelling units will have their registration fees waived.

Limitations on Evictions – “Just Cause” Regulations:

• Establishes local “just cause” eviction regulations for at-fault and no-fault eviction – evictions allowed only if included in the list provided under the ordinance.
• Relocations fees for no-fault evictions equal to three (3) times the renter’s monthly rent in effect when the notice was served. If any renter residing in the unit is a qualified renter, as defined in the ordinance: 62 years old or older, disabled, has one or more dependent children under the age of eighteen residing in the unit, meets the income limits of a “lower-income household” or has continuously lived in the unit for five years or more, the housing provider is required to pay an additional relocation fee of one (1) times the renter’s monthly rent in effect when the notice was served.

Capital Improvements Pass-Throughs

• The ordinance provides a process in which housing providers may pass-through 50% of Capital Improvement costs to existing renters.

Petition For Rent Adjustment

• The ordinance provides a petition process for owners to apply for a rent increase above the permissible annual allowable increase based on the necessity of the additional rent increase to earn a fair and reasonable return.
• Renters are also provided with a process to apply for a rent adjustment under certain circumstances.

The ordinance also includes anti-tenant harassment provisions, notice requirements, imposes administrative citations, civil and criminal penalties for violations and/or civil action.

This article is for informational purposes only. If you have any questions regarding your property or specific tenancies and the requirements of any local law changes described herein, please consult with an attorney.