Cudahy to Adopt 90-Day Rent Increase Freeze – To Be In Effect October 20, 2022

Posted By: Danielle Leidner-Peretz Industry News,

At the September 6th Cudahy City Council meeting, the Council voted 3-0, to adopt a 90-day rent increase freeze prohibiting rent increases on residential rental units. Councilmembers Guerrero and Lozoya were not present at the meeting. As a procedural matter, the ordinance must be voted on and passed a second time prior to adoption. If adopted, the ordinance would be in effect on October 20, 2022, through January 18, 2023.

The ordinance would apply to existing residential renters whose tenancy started before or on October 20, 2022. The ordinance also includes a process for owners to petition for a rent increase based on the contention that due to the prohibition they are not receiving a fair and reasonable return. Additionally, over the next 90 days, the City’s Ad Hoc Rent Control Subcommittee will explore more permanent solutions, including potential local rent control.

During the meeting, Vice Mayor Gonzalez expressed concerns regarding the negative impact of the proposed interim measure on small business rental housing providers who own rental properties of 4 or fewer units and initially put forth an amending motion to exempt these owners from the ordinance. The Vice Mayor also inquired about being on the City’s Ad Hoc Rent Control Subcommittee which is currently comprised of Mayor Alcantar and Councilmember Lomeli. Following a brief discussion, Councilmember Lomeli agreed to step down from the Subcommittee and for Vice Mayor Gonzalez to replace her on the Subcommittee, if he agreed to withdraw his amending motion. Vice Mayor Gonzalez withdrew his motion and the ordinance passed without the proposed exemption.

Prior to the meeting, the Association submitted a letter to the City Council expressing strong opposition to the rent increase freeze and highlighting the detrimental impact it would have on the City’s already struggling small business rental housing providers. It is anticipated that this ordinance will be voted on a second time at the September 20th City Council meeting.  At that meeting, the City Council will also be discussing the Rent Control Ad Hoc Committee and related direction.  We will continue to monitor this issue, advocate for our members’ interests, and provide updates.

We encourage members with property in the City of Cudahy to review the final ordinance, once adopted, and to consult with an attorney with any questions regarding specific tenancies.