Los Angeles County Board of Supervisors Vote to Adopt Amendments to the Permanent Rent Stabilization
On Tuesday, February 18th, the Los Angeles County Board of Supervisors voted 4-1 with Supervisor Barger opposing, to adopt amendments to the Permanent Rent Stabilization Ordinance (RSO) that are to be effective April 1, 2020. While numerous amendments to the ordinance were proposed, a handful of amendments raised issues of concern such as amendments requiring owners to update the County’s rental registry system if any subsequent changes occur with respect to any rental unit, specifying that additional occupants to an existing tenancy does not constitute a material breach, and clarifying the language related to the factors utilized in assessing whether to grant a rental housing provider a rent adjustment. The Rent Adjustment amendment reads “the Department shall approve an application for a Rent Adjustment if the Department determines that the adjustment is necessary and appropriate to ensure the Landlord receives a fair and reasonable return on the Landlord’s investment, will not cause an undue financial burden on the affected Tenants, and complies with all the provisions of this Chapter.”
Prior to the meeting, the Association spoke with County staff and submitted a letter to Board of Supervisors expressing our strong concerns related to the proposed Permanent RSO amendments. We noted the importance of ensuring that owners are informed of any changes to the unit and the associated consequences when the owner is unaware of the new occupant, including limiting the owner’s ability to properly screen and approve the new occupant and the unanticipated costs that cannot be recovered.
Further, we indicated that requiring owners to update the County’s registry system for any changes to the dwelling unit would be unduly burdensome to owners, especially when most important changes are reflected through a change in tenancy. It’s important to note that under the Permanent RSO all dwelling units that are rented or are available for rent within the County’s unincorporated areas are subject to the annual rental registration requirements. The Association also contended that the Department’s consideration of the renter’s financial circumstances when determining whether to grant owner’s rent adjustment application would result in a regulatory taking as it would deny the rental housing provider a fair and reasonable return on their investment.
The Board was also set to consider and adopt an ordinance establishing an annual RSO rent registration fee. After discussion with County staff and issues raised, the matter has been postponed to a later date. It is anticipated that the Permanent RSO fee ordinance would be brought back to the Board for consideration and adoption on May 26, 2020.
We will continue to monitor this issue, advocate for our member’s interests and provide updates.
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