Updates: New City of L.A. Economic Thresholds for Evictions; Allowable Increase Set at 4%

Updated Economic Thresholds

Rental housing providers within the City of Los Angeles may not commence a tenancy termination unless and until a tenant own an amount more than one month of Fair Market Rent as set by the U.S. Department of Housing and Urban Development (HUD), which amount depends upon the number of bedrooms rented. Beginning October 1, 2023, the amount of Fair Market Rent has been updated as follows:

Up to 4% Allowable Rent Increase Plus Additional Up to 2% for Utilities

Additionally, beginning on February 1, 2024, rental housing providers in the City of Los Angeles who are subject to the City’s Rent Stabilization Ordinance may increase annual rent by 4% through and including June 30 2024, at which time further action will be required by the City Council of Los Angeles to determine a new allowable, annual rent increases. An additional one percent (1%) increase is allowed in each instance when a landlord provides electricity or gas services for an aggregate increase allowed equal to two percent (2%) (e.g., if the landlord provides both electric and gas services). Annual increases must be notified to tenant through a “30-Day Change in Terms” notice.