NEWS ALERT: Cudahy Adopts Rent Stabilization and Just Cause Ordinances
At the May 30th Special Meeting, the Cudahy City Council adopted a rent stabilization (a/k/a rent control) ordinance that limits rent increases annually to just 3% or the change in the Consumer Price Index (CPI), whichever is lower. All multifamily properties in Cudahy that received a certificate of occupancy after February 1,1995 are covered under the rent stabilization ordinance with the exception of owner-occupied duplexes. The City also unanimously adopted a “Just Cause” tenant protection ordinance limiting evictions to specific reasons stated in the ordinance (e.g., “At-Fault” and “No-Fault” reasons). We urge our members in Cudahy to review the ordinances (see below). Both of these ordinances will go into effect on July 7, 2023.
The Apartment Association of Greater Los Angeles (AAGLA) strongly opposed the rent stabilization and Just Cause ordinances. AAGLA conducted outreach to individual City Council Members in advance of the meeting, sent a Red Alert to members urging them to call or email the full City Council in advance of the meeting, provided extensive written comments against both ordinances and spoke against them in-person during public comment at the City Council meeting.
AAGLA urged the City Council to conduct a formal cost and housing impact study before moving forward with such expensive and destructive policies. In addition, City staff presented no evidence of significant rent increases in Cudahy, while AAGLA provided data from CoStar (a nationally recognized, third party aggregator of rental housing data) that showed no history of substantial rent increases in Cudahy either before, during or after the COVID-19 pandemic. AAGLA also addressed concerns regarding the significant costs that the City will incur, in the likely amount of several millions of dollars, to administer and enforce the new ordinances.
Unfortunately, facts, logic and likelihood of substantial new City costs fell on the deaf ears of Mayor Daisy Lomeli, and Council Members Elizabeth Alcantar and Cynthia Gonzalez that voted for the ordinances while ignoring pleas to oppose the measures from long time community members and rental housing providers to consider more equitable approaches. Thank you to Council Member Martin Fuentes and Vice Mayor Jose Gonzalez for wanting to follow a more fair and balanced approach to help keep “mom-and-pop” rental housing providers from going out of business and prevent Cudahy from losing its already limited supply of naturally occurring affordable rental housing as independent local owners are forced to leave the rental housing business.
AAGLA also argued against the Just Cause ordinance which fails to permit property owners from undertaking substantial remodels of their properties. This will surely lead to deferred maintenance and deterioration in the quality of the rental housing stock in Cudahy. In addition, all No-Fault evictions require the payment of substantial relocation fees by owners in an amount equal to three times the amount of the tenant’s rent in effect at the time of the termination of tenancy for non-qualified renters. For qualified renters, defined as low-income, seniors, disabled, families with children, or tenancies of 5 years or more, the relocation fees are increased to four months’ worth of rent. Apparently, it is more important for Mayor Lomeli and Council Members Alcantar and Gonzalez to be obedient puppets of tenant organizations and copy other city’s ordinances, flaws and all, rather than taking the time to think for themselves and make far more effective changes before passing retreaded policies such as those passed last week. Now thanks to Mayor Lomeli and Council Members Alcantar and Gonzalez, renters in Cudahy can look forward to living in increasingly outdated, overcrowded and deteriorating properties.
Additional provisions contained in the Just Cause ordinance, include:
- Rental housing providers must submit a notice of termination to the City of Cudahy Community Development Department within 5-days following the date served upon a tenant;
- Rental housing providers must now provide tenants with mandatory notice of tenant rights at time of or prior to rent increase or at the time of entering into or renewing a lease agreement;
- Rental housing providers may not terminate for owner occupancy if tenant has resided in unit at least 5-years and tenant also is: (i) 62-years or older; (ii) disabled; or (iii) low income. Tenant must be offered a right of first return if owner occupancy is less than 3-years.
As always, AAGLA will continue to advocate for our members’ interest in Cudahy and keep them informed of other actions by the City Council.
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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.