News Alert: West Hollywood Passes Costly Building Performance Mandates
News Alert:
West Hollywood Passes Costly Building Performance Mandates
By Janet M. Gagnon,
Chief Corporate Affairs Officer & SVP Government Affairs
On December 1st, 2025, the West Hollywood City Council unanimously adopted a new ordinance requiring all rental properties having 20,000 square feet or more to conduct expensive benchmarking, third party data verification and mandates for performance improvements. The ordinance goes into effect on December 31, 2025.
The performance mandates are tiered over time and greatly increase in expense for rental housing providers with the first interim performance standard deadline of May 15, 2028, a second interim performance standard deadline of May 15, 2032, and a final performance standard deadline of May 15, 2036. For a 20-unit multifamily property, below is one cost scenario from the city staff’s report.
|
Year |
Measure |
Incremental Cost for Whole Building |
|
2026-2028 |
Lighting and Exterior Photosensor |
$1,120 |
|
Insulation and fixture efficiency for water heater |
$3,360 |
|
|
2028-2032 |
Solar PV (assuming the PV is leased) plus Heat Pump Water Heater (at burnout) |
$51,880 |
|
2032-2036 |
HVAC (at burnout) |
$64,900 |
|
R-49 Attic Insulation |
$14,900 |
In addition, penalties for not meeting the deadlines are up to $10 per square foot based on the building’s gross floor area. This means that a 20,000 square foot property owner could face a penalty of $200,000. This is purposeful by the City Council as they claim they want to make the cost of compliance (which is expensive) less expensive than the penalties to encourage compliance.
Also, if a property is sold by the current owner, there is a requirement that the seller use a specific disclosure in the agreement for sale, which states, “Buyer is aware that the City of West Hollywood has adopted requirements for building energy benchmarking and performance of different types of buildings. The requirements can be found in West Hollywood Municipal Code Chapter 15.100. For more information on which types of buildings are required to comply with energy benchmarking and performance standards, Buyer is advised to contact the City of West Hollywood Community Development Department.”
This article is for informational purposes only. If you have any questions regarding your property or specific leasing issues and the requirements of any legal changes described herein, please consult with an attorney.