The Brief

In the city of Los Angeles, some 650,000 apartments are subject to local rent control. How much rents can go up each year has been the subject of ongoing controversy between tenants and landlords, who often disagree about what’s fair amid a regional crisis in affordable housing.

The L.A. City Council, which sets policy, has been at the center of that tension. Last October, Councilmembers Bob Blumenfield and Hugo Soto-Martinez put forward a motion calling for a fresh look at the city’s decades-old formula for setting annual limits on rent hikes. The council approved that motion and called for a study to “conclude within 3 months.”

This May, the Economic Roundtable, the nonprofit research organization the city commissioned to carry out the study, submitted its report to the L.A. Housing Department. Four months later, the city still has not released it publicly. LAist obtained the report through a public records request.

The independent analysis found some of the city’s rules governing rent increases have favored landlords over tenants. The report recommends changes that could lower the rent hikes tenants face each year, setting up what is sure to be a fierce debate at city hall.

LAist has published the full report here (and you can also read it below).

What’s in the report? 

Over the course of 193 pages, the report offers an extensive analysis of the L.A. rental housing market, challenges facing both tenants and landlords, and the impact of the city’s Rent Stabilization Ordinance. Among the findings:

• About 35% of the rent L.A. tenants pay goes to operating expenses for apartment buildings, on average. This includes maintenance, utilities, insurance, payroll and other routine costs. Landlords can use the remainder to cover mortgages and turn a profit.
• From January 2020 through January 2023, 4 in 10 rent-controlled L.A. apartments became vacant. When a tenant leaves a rent-controlled unit, the city’s rules allow landlords to raise rents to market rates. These higher rents helped landlords absorb the impact of a nearly four-year freeze on rent hikes.
• Many expenses have risen sharply for landlords in recent years, outpacing inflation. Property insurance costs have roughly doubled since 2020. However, the report notes these expenses make up a relatively small portion of overall costs.
• About one-fifth of L.A. renters are living below the federal poverty line. According to U.S. Census data, just over half of those renters spend 90% of their income or more on rent. Rent increases can leave these low-income renters vulnerable to displacement and homelessness.
• The city’s current range of allowable annual rent increases — anywhere from 3% to 8% depending on inflation — is higher than the increases permitted in most other California cities with rent control.

The report makes some recommendations on how the city could change its formula for determining annual rent increase limits:

• Either eliminate a provision allowing landlords to raise rents an extra 1% per year if they pay for a tenant’s gas, plus another 1% if they pay for electricity — or replace it. The report estimates each 1% increase could raise rents an additional $150 to $240 per month after 10 years, more than the actual cost of providing those utilities. One option, the report says, would be to instead use a surcharge that better captures the increased costs of providing those utilities.

The report recommends considering changing which version of the consumer price index is used to calculate allowable increased to one that excludes housing costs, shown as "Less Shelter" in the chart above.

(

Courtesy Equitable Rent report

)

• Change how annual rent increases are calculated. Instead of using a version of the consumer price index driven to a large degree by housing cost inflation, the report recommends a different index that excludes housing costs. The report argues this would stop the feedback loop of allowing high housing inflation to create further housing inflation.

What do landlord advocates say?

LAist shared the report with advocates for landlords and tenants.

Landlord advocates strongly disputed the report’s conclusions. Daniel Yukelson with the Apartment Association of Greater Los Angeles pointed to recent data from the National Apartment Association, a trade group for property owners, concluding that California landlords earn 7 cents of profit on average for every dollar of rent.

“What [the report] is trying to do is make a PR effort to lay the groundwork to chip away at what little ability landlords have in L.A. to be able to raise rents and be able to keep up with their costs,” Yukelson said.

He said the report takes a macroeconomic view of the city’s rental market, but fails to capture the unique struggles facing many small landlords.

“There are plenty of owners out there who have had their renters in place for many years,” Yukelson said. “They're way below market. And they're having trouble today keeping up with the growing costs of insurance, maintenance and supplies.”

What do tenant advocates say?

Tenant advocates took a very different view of the report. They said it correctly identifies problems with L.A. rent control and validates their demands for stronger limits.

“Small landlords are able to maintain their profits and draw income above their expenses — they haven't been overly burdened by rent stabilization,” said Christina Boyar, a legal fellow with Public Counsel and a member of the Keep L.A. Housed coalition.

Tenant advocates have called for a 3% ceiling on annual rent hikes and elimination of the 2% surcharge for landlords who provide gas and electricity. They point to other L.A.-area cities that currently limit rent increases to less than 3% with no add-ons for utilities.

“The report shows that rent costs exceeding what tenants can pay is a primary cause of homelessness,” Boyar said. “We are obviously in a homelessness crisis in L.A., and if this formula isn't updated soon, more folks will just fall into homelessness.”

How LAist obtained the report

The city’s housing officials have been in possession of the Economic Roundtable report since May.

When LAist first requested the report, officials told a reporter the study was not subject to disclosure under the California Public Records Act, saying there was an exemption for “deliberative process.”

They provided the report shortly after LAist’s public records lawyer intervened.

Why had the city not released the report? 

Daniel Flaming, president of the Economic Roundtable and a co-author of the report, said he didn’t have a good answer for why the report was kept under wraps.

“I think when it's a politically contentious issue, there are attempts to manage the conversation,” Flaming said. “The substance of the report is final. It was submitted as a final report and accepted by the city as a final work product.”

Sharon Sandow, a spokesperson for the L.A. Housing Department, told LAist last week the document was still a “draft report,” and they didn't have a specific date lined up for its release.

“There are several rounds of revisions left to go before this report is considered final,” Sandow said in an email. “Economic Roundtable is under contract to complete this report through January 2025 — though clearly we hope to have it finalized before then.”

By the end of last week, Sandow sent LAist a version of the report she described as "final."

Under state public records law, preliminary drafts must be released if they are retained in the ordinary course of business, as this one has been. LAist noted in its correspondence with housing department officials that the report was not a draft but was a finished product submitted by the contractor.

Why it matters

The city’s rent increase limits apply to a huge number of L.A. residents. Almost two-thirds of L.A. households rent their homes. Local rent control rules cover about 650,000 apartments — 44% of the city’s entire housing stock. Apartments in L.A. are generally covered by local rent control if they were built before Oct. 1, 1978.

Housing costs are a major burden for many L.A. households. About 59% of the city’s renters spend more than 30% of their income on rent, a level considered unaffordable by federal government standards.

The report notes that because L.A. has a 3% floor on annual increases — even in years when the consumer price index is lower — landlords have often been allowed to raise rents above inflation. Between 2010 and 2020, the consumer price index in L.A. rose 21%. During the same period, rents in rent-controlled L.A. apartments were allowed to rise 36%.

The issues facing landlords

On the other hand, the report finds that landlords have faced unique challenges — particularly during the COVID-19 pandemic.

State and local regulations allowed tenants who lost income during the pandemic to delay rent payments. Annual increases in rent-controlled housing were banned. And landlords were restricted from evicting tenants who fell behind on rent. That all played out during a time when the cost of maintenance, utilities and insurance was rising faster than inflation.

L.A. kept COVID-19 protections in place far longer than many other jurisdictions. The city faced strong criticism from landlords who argued too little was being done to help property owners.

Some of these hardships were addressed by government rent relief programs, which provided funds to landlords with tenants behind on rent. The report also notes that high turnover helped landlords raise rents to market rates and keep rental income nearly at pace with inflation.

But landlord advocates say some property owners have yet to fully recover from the pandemic. They now worry about the potential cost of proposals to remove gas stoves and install air conditioners.

“The cost of electricity is just going to continue going up,” Yukelson with the Apartment Association said. If the city stops landlords who provide electricity from raising rents an additional 1% per year, he said, “The next tenant is going to have to pay that burden, because the rents are going to have to go up.”

How L.A. stacks up to other cities

On balance, Flaming said the report shows that L.A.’s policies diverge significantly from how other California cities handle rent control. He said the utility surcharge in particular seems “arbitrary.”

“The Los Angeles ceiling and floor are atypically high for rent-controlled cities,” he said. “Among cities that have elected to control rents — and not all cities have — Los Angeles appears to be tilted toward landlords.”

Some L.A. city council members have floated the idea of establishing different rent control rules for “mom and pop” landlords and larger, corporate landlords. The report recommends the city instead target aid to small landlords, rather than allowing additional rent increases on tenants.

What happens now? 

The clock is ticking for the city to develop a new rent-control formula in time for Jan. 1, 2025. That’s when landlords will be required to give tenants notice of any rent increases starting in February. Many tenants in rent-controlled housing received a 4 to 6% annual rent increase on Feb. 1, 2024 due to the lapse of the L.A.’s COVID-19 rent freeze.

Soto-Martinez, one of the council members who requested the report be commissioned — has already called for capping increases at 3%.

In an email reacting to the Economic Roundtable report, Soto-Martínez told LAist, “As we await the finalized version of this report, it’s heartening to see so much data supporting the policy changes that renters have been demanding — especially when it comes to preventing excessive rent increases that can devastate working families.”

The city’s rent control debate is playing out against the larger backdrop of an election season where rent control — and many other housing-related measures — are up for a state-wide vote.

Read the full report

Link: Equitable Rent Rent Stabilization Standards in the City of Los Angeles

Note: The initial report released to LAist early last week was dated May 2024. Late last week, L.A. housing officials resent the report, now dated September 2024.

The Los Angeles City Council decided Tuesday to put off the full effects of a major new state housing law by allowing low-rise apartment buildings in some neighborhoods where such housing has long been banned.

All council members voted in favor of those plans except for Traci Park, who was absent from the meeting.

California’s Senate Bill 79 is set to take effect July 1. The law overrides local limits on housing development by allowing apartment buildings between five and nine stories tall near train stations and rapid bus stops.

However, cities are allowed to postpone those changes until 2030 by developing their own incremental plans for more housing. L.A. elected leaders have chosen to delay. They’re doing so through the city’s new Low-Rise Ordinance, which aims to allow buildings up to four stories tall in 57 neighborhoods near transit lines.

Why it matters

L.A. lawmakers have tried many approaches to bring down L.A.’s high rents. But they have consistently voted to stop apartment developers from encroaching on the nearly three-quarters of city residential land reserved for single-family homes.

Pushed by state lawmakers, city leaders are now having to accept some changes in single-family neighborhoods located near public transit lines.

The reaction

Some local officials and homeowners have expressed frustration over new state limits on their ability to stop development in low-density zones. But advocates for more development said the council’s decision will help address high rents by allowing more housing in areas that have long been off-limits to new apartments.

“The City Council voted to open up high-resource single-family neighborhoods near transit stations,” said Scott Epstein, policy director with Abundant Housing L.A. “This reform is long overdue and will help build a future where Angelenos of all incomes can find homes in the neighborhoods of their choice.”

Where will the projects be allowed?

Officials with the city’s planning department said residents can see whether Low-Rise Ordinance projects will be allowed in their neighborhood by clicking on this interactive map and making two selections from the “layer list” menu: “Opportunity Station Sites Eligible for Low Rise” and “Sites Eligible for Low Rise Outside of Opportunity Station.”

The map shows that some of the areas eligible for new apartment buildings under this plan include Westside neighborhoods within a half-mile of the E Line’s Westwood/Rancho Park station, pockets of the San Fernando Valley near G Line stops, and parts of Eagle Rock along Colorado Boulevard’s planned North Hollywood to Pasadena rapid bus line.

Is this a done deal?

Both plans — the decision to delay full SB 79 implementation, and the new Low-Rise Ordinance — now go to Mayor Karen Bass for final approval. Council members are also considering some tweaks they say would help Low-Rise Ordinance projects get built.

Those changes would include letting developers build denser projects if they reserve more units for low-income renters, as well as rules that would let developers build ground-level parking instead of costlier underground parking. The council’s planning committee voted Tuesday to forward those suggestions to the full City Council for further debate.

There’s a new tool to fight illegal fireworks this Fourth of July: drones.

“A drone’s real-time aerial view can help officers assess situations faster, improve safety, support faster response times and ensure the right resources are sent where they’re needed most,” the Anaheim Police Department stated in an Instagram post.

Anaheim's department is the latest law enforcement agency using the technology to quickly identify illegal fireworks use. The Downey City Council is expected to vote Tuesday night on potential new fines and new rules that would allow local law enforcement to use drones to patrol neighborhoods for illegal fireworks usage.

How it works

Here's how the tech is put to use: Seconds after authorities receive a call reporting illegal fireworks activity, drones can take to the air, hovering above neighborhoods and businesses to find a specific location and an offender. The surveillance devices are equipped with night vision and zoom lenses that allow first responders to record high definition videos right from their Real Time Crime Center at the station.

Then, officers can determine whether to send out a patrol car or issue a citation for the incident.

Why it matters

The city’s drone usage comes as law enforcement agencies across Southern California brace for the annual flood of complaints about illegal firework use at this time of the year. Drones make the most effective use of time and resources, experts say.

“We'll typically see about 2,000 calls and about 300 related to fireworks,” Anaheim’s chief communications officer Mike Lyster explained about the Fourth of July. “It really is a better use of resources on what is always a very, very busy holiday for us.”

Drones allow officials to collect enough evidence to issue these citations. In Anaheim, the punishment starts at $1,000 and climbs to $3,000 by the third offense. But authorities say the goal is to curb illegal fireworks use altogether due to the risk of injury and wildfires.

Lyster hopes that people will think twice about using illegal fireworks this holiday — not just because of the fines — but because of its negative impact on local communities.

“The Palisades fire was ultimately started by illegal fireworks, and sadly, not in our city, but in our neighboring city, a young Anaheim girl died in an illegal fireworks incident last year,” Lyster said.

Where are drones already in use?

More cities are testing this method in order to crack down on illegal firework use. Sacramento, San Bernardino and Riverside are just a few of the other areas that have adopted this technology in recent years.

How do I know what's legal?

If you have any questions about what is legal or not in your community, a quick Google search can help.

Each county goes by different regulations for the types of fireworks you can use — if at all.

For example, parts of Anaheim allow “safe and sane” fireworks to be used only on the Fourth of July between 10 a.m and 10 p.m. This includes non-explosive, non-aerial devices like fountains, sparklers and smoke balls. State-approved fireworks will have a State Fire Marshal seal.

LAist staffer Anjanette Gile also contributed to this report.

The story first appeared on The LA Local.

Your neighborhood has a reporter. Have you met them yet?

On Saturday, coffee shops across L.A. are turning into places where you can tell a journalist exactly what’s been bugging you about your block … while drinking amazing coffee.

From Boyle Heights to Silver Lake to Inglewood to Long Beach, local reporters will be set up at neighborhood coffee shops from from 10 a.m. to 3 p.m. — to hear what’s on your mind. Got a tip about a pothole that’s been eating tires for years? A landlord the city keeps ignoring? A community hero nobody’s written about? We want to hear it all!

It’s part of Local News Day LA, a pop-up series organized by The LA Local that connects you with your local reporter and give you a chance to become the source instead of just the reader.

LAist has been meeting community members in person through LAist Listens tabling events by popping up at local businesses.

See below for the full list of participating media outlets and coffee shops — The LA Local and our media partners hope you’ll join us:

LAist will be joining The LA Local and other local media partners for Local News Day LA on June 27.

(

The LA Local

)

Where to find a journalist

1. The LA Local – Koreatown, Pico Union, Westlake will be hosted by Open Market
2. The LA Local – Inglewood and South LA will be hosted by Asteroid Vinyl Cafe
3. Boyle Heights Beat will be hosted by Picaresca Cafe
4. CalMatters will be hosted by Yia Caffe 
5. Calo News will be hosted by Cruzita’s Deli and Cafe
6. The Eastsider will be hosted by Rosebud Coffee (Highland Park location)
7. LAist will be hosted by Cafe Calle
8. Los Angeles Radio Collective will be hosted by Spoke Bicycle Cafe
9. LA Sentinel will be hosted by Patria Coffee
10. LA Taco will be hosted by Cafecito Organico (Silverlake location)
11. LA Public Press will be hosted by Holy Grounds Coffee & Tea
12. Long Beach Post will be hosted by Wrigley Coffee
13. Q Voice News will be hosted by Hot Java
14. USC Annenberg Media will be hosted by South LA Cafe (Western location)

Come enjoy a cup of coffee (or tea) with us while supplies last. 

A coalition of 17 states and a trade association representing U.S. wholesalers and distributors have sued California to block the enforcement of a stringent recycling law that aims to reduce plastic packaging waste.

The lawsuit, filed Monday in federal court, argues that California’s recently finalized regulations that will gradually require companies to scale back single-use plastics and ensure all packaging is recycling or compostable should be struck down. The plaintiffs called the regulations “onerous mandates” that will cause steep price increases in everyday necessities that will be passed on, at least in part, to consumers.

“Once again, California is trying to enact a policy that negatively impacts the rest of the country. If California goes unchecked, consumers will be forced to pay more for basic necessities,” Nebraska Attorney General Mike Hilgers, who led the coalition, said in a news release.

The law, called the Plastic Pollution Prevention and Packaging Producer Responsibility Act, was enacted in 2022.

“Virtually every product packaged or shipped in plastic containers, as well as a significant number of other types of packaging materials that merely incorporate plastics, fall into the Act’s remarkable sweep,” the lawsuit said.

The National Association of Wholesaler-Distributors, which represents companies that import and distribute goods in California, also joined the lawsuit.

“California is not entitled to pronounce nationwide policies,” Eric Hoplin, the trade association’s president and CEO, said in a statement. “Because the Act extends California’s regulatory reach far beyond its borders and brings within its sweep conduct wholly unconnected to California, the Act violates principles of federalism, the horizontal separation of powers, and due process.”

The lawsuit argues the law violates both the U.S. and California constitutions. It asks the court to declare California’s law invalid and unenforceable, and halt its implementation.

The lawsuit names as defendants Zoe Heller, director of California’s recycling agency known as CalRecycle, and the Circular Action Alliance, a nonprofit involved with implementing the law.

Melanie Turner, a spokesperson for CalRecycle, said in an emailed statement that the agency does not comment on pending litigation and that it remained focused on implementing the law.

The alliance said in a statement that it was aware of the lawsuit and closely monitoring developments while at the same time working to implement the law’s “ambitious goals.”

In a May news release announcing regulations under the law, state officials said the changes would fight plastics pollution while protecting the interests of taxpayers and local governments.

“California is shifting the responsibility of managing single-use plastic and packaging onto the producers. New packaging reforms lower waste costs for communities and decrease garbage and pollution across the state,” Environmental Protection Secretary Yana Garcia said in a statement. “This approach pushes producers to innovate and design packaging that truly supports a circular economy.”

Joining Nebraska in the lawsuit were 16 other states with Republican attorneys general: Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah and West Virginia.Environmental groups also have sued over the law. A coalition that included the Natural Resources Defense Council recently filed a complaint over what it said in a news release were “weakened” final regulations for the “landmark” law.