Coalition for Economic Survival (CES)
ACTION ALERT!!!
SAVE RENT CONTROL!!!!
City Council to Decide on Proposals That
Could Mean Major Rent Increases to Tenants!!!
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 LA's Rent Control law is in danger of being undermined, resulting in tenants receiving major rent increases and potentially losing their homes. Turnout is greatly needed this Wednesday, SEPT 29 at 7:00 am,
Room 350, City Hall at the City Council Housing, Community &
Economic Development (HCED) Committee. We encourage you to get there at 7:00 am to ensure getting in the hearing room. Landlords will try to pack the room.
The HCED Committee hearing on the new rent control proposals could result in major rent hikes to tenants. Please attend this hearing to help SAVE RENT CONTROL!
LA Tenants Are Paying Too Much for Rent
A $1 million City-sponsored "Economic Study of the Rent Stabilization
Ordinance and the Los Angeles Housing Market" (RSO Study) was released in June 2009. The study's findings showed tenants are paying too much for rent in LA even with rent control:
· 58% of LA tenants are rent burdened,
which means they pay more than 30% of their income to rent, with 31%
being severely rent burdened, paying more than 50% of their income to
rent.
· 56% of those with annual incomes of $35,000 or less are
severely rent burdened, paying 50% of their income to rent.
· 27% of RSO tenants received illegal rent increases.
A Key recommendation of the study was the elimination of the 3% "floor" on rental increases allowed by the RSO based on the Consumer Price.
Last May, the City Council shockingly voted down a proposal by Council Member Richard Alacon to freeze rents until the study recommendations are discussed and adopted. As a result of the rent freeze rejection, even though the current CPI rate for
2010 was -.62 %, renters were unjustly hit with another 3% annual rent increase (with an additonal 1-2% increase for master metered builidngs, effective July 1, 2010.
New Proposals Will Result in Higher Rents for Tenants
The new proposals before the LA City Council ignores the study findings and are heavily weighed towards providing concessions to landlords at tenants' expense. If these proposals pass it will increase the rent burden to tenants, force tenants from their homes, increase homelessness and result in the loss of affordable housing.
The City Council has a clear choice of protecting the lives of LA tenants or siding with increasing landlords' excessive profits and greed.
The proposals does the following:
- Fails to Eliminates the Rent Increase Floors (It only lowers it from 3% to 2%)
- Increases the Rent Increase Cap to 9%
- Adds an Additional Rent Utility Surcharge Increase for tenants
- Does Eliminate the 1-2% Utility Rent Increase for Master Metered Units & Replaces it With the lower utility surcharge
- Increases rent increase cap amounts for renovations and capital improvement pass thoughs and extends the time tenants will have to pay these increases.
- Removes the limits on the allowed number of applications for Primary Renovation applications a landlord can file.
- Increases the yearly rent registration fees for tenants
- Allows for new luxury unit exemptions removing rent control protections for tenants living in these units. |
