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The Rollins Group LA
Culver City Rent Control
Culver City pursues 3% cap on rent increases, explores other tenants’ protections
We’ve seen this movie before, most recently in Inglewood.
An influx of tech companies and jobs always spawns calls for rent control, and Culver City has not defied this rule. Already a hub for studio film production, Culver City has become a prime destination for high tech and streaming Goliaths expanding their presence near Hollywood and L.A.’s “Silicon Beach.â€
Burning the midnight oil, City Council recently voted 4-1 to move forward on implementing a temporary rent freeze of 3%, but also consider permanent caps on rent hikes. The city’s finalized ordinance will be up for a vote in August.
Listen to the podcast: Culver City looks at stabilizing rent
If the council votes affirmative, the ordinance would have a retroactive effective date of June 24.
It doesn’t stop there.
Culver City is also flirting with a “just cause†eviction requirement and relocation payment schemes – the council asked staff to conduct further research. A popular idea floating is relocation assistance of $1,000 and three months’ rent, though nothing is yet carved in stone.
City personnel will also look into how to implement a rent registry and assemble a committee to review further regulations.
Statewide rent control and “just cause†eviction policies steam forward
AB 1482 would impose statewide rent control and “just cause†eviction policies. To the elatement of tenants’ advocates, the measure has cleared many legislative hurdles to date.
Many inquisitive clients have asked us what the chatter was all about on statewide rent control and so an update is in order. We wish we could say your concerns are misplaced, but cannot.
Before we explore where the bill is now, let’s take examine what’s at stake. AB 1482 is loosely modeled after Oregon’s statewide rent control measure. If the bill is passed, annual rent increases would be capped at 7% plus the Consumer Price Index, so as a ballpark, let’s say 10%.
In our rent control guide, MT Evictions has surveyed tenant protections in many municipalities, some of them adopting rent control and others taking a more moderate approach. If AB 1482 is passed, those cities that rejected rent control would nonetheless be subject to the new law.
New construction less than ten years are exempt, as are detached single-family homes when the owner does not own more than 10 units in their name.
Evictions become more difficult
If AB 1482 becomes law, a good reason to evict is not enough. The eviction must be supported by the testimony of third-party witnesses and this burden of proof will make it more difficult to end tenancies with problematic tenants that create a nuisance. Under ordinary circumstances, we are thorough in compiling evidence and sticklers for documentation, but this core competency will become all the more important if statewide rent controls are implemented.
We remind owners that even with cooperative witnesses, serving a subpoena is always advisable so that employers can grant the time off, and something we routinely do at MT Evictions.
Now that we know what the proposal looks like, let’s see where it’s at now in the statehouse.
After sailing through several processes, AB 1482 now falls into the lap of the Appropriations Committee, a body that is known as a graveyard where difficult legislation can be quietly put to rest without forcing lawmakers to vote up or down on the bill, and we hope that this committee lives up to its grim reputation on this bill.
In this democratic process, the rental property industry will get no sympathy from Governor Newsom, who says the measure is “long overdue in the State of “We don’t want to scare off development …. We don’t want builders to go to other states. Unfortunately, we are seeing this now.â€
~ Debra Carlton, Senior Vice President of Public Affairs
At a time when new housing construction is sorely needed, developers have cancelled projects slated for Southern California and have flocked to less restrictive states like Texas, Utah, Colorado and Nevada.
California.â€
From the LA Times: Newsom backs effort to cap rent increases in California
Tenant relocation assistance rules take shape in Long Beach
We said earlier that after tenants’ advocates have tried unsuccessfully for years to usher in eviction and rent controls, Long Beach finally softened their heart. In its April meeting, the city agreed in principle that amid rising rents, landlords should dole out relocation payments to tenants who are displaced from unaffordable rent increases, or no-fault evictions.
When proposed rent increases exceed 10% in a 12-month period and the tenant objects to the hike, the landlord must pay relocation payments. Owners also have to pay relocation payments when the tenant is transitioned through no fault of their own, such as a landlord’s substantial rehabilitation of the unit.
When proposed rent increases exceed 10% in a 12-month period and the tenant objects to the hike, the landlord must pay relocation payments. Owners also have to pay relocation payments when the tenant is transitioned through no fault of their own, such as a landlord’s substantial rehabilitation of the unit.
Exactly how much money dispensed in relocation payments?
When tenants are displaced by a rent increase or through a no-fault eviction, landlords are obligated to pay two months of rent, but the dollar amount is pegged to the “number of bedrooms averages across all Long Beach zip codes in the then-current Payment Standards/Small Area Fair Market Rents published by the Housing Authority of the City of Long Beach,†according to the city’s legal team. This number will fluctuate, but cannot exceed $4,500.
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