The Brief

Rent control can either be your friend or your enemy.

The laws are often the bane of landlords who’d like to charge more and a potential safety net for tenants who can’t afford steep rent hikes. But why it’s around isn’t necessarily because politicians want to protect the little guy — rent control has historically been used to mitigate another problem.

If you want a breakdown of how rent control may work in your area today, here’s the guide for that. But in this one, we’ll explore more of the backdrop: how high inflation, wartime efforts and a housing crisis birthed different eras of rent control.

The wartime effect

L.A.’s first round of modern rent control came more than 80 years ago — and it was perhaps the strictest we’ve seen.

When World War II began in 1939, industrial employment ballooned. The Great Depression was easing, so workers migrated to Los Angeles in the tens of thousands for employment. But the surge in population, combined with the war effort, created a perfect housing storm that lasted for years.

More people were coming at a time when our housing stock couldn’t keep up. About 15,000 residential projects went unfinished because labor and supplies were diverted to the war, according to research from the UCLA Luskin Center. With demand way up, many people had no choice but to live in severely overcrowded and unsuitable conditions. The situation was so dire when a federal study was conducted that a veteran shared how he was living in a house with 18 other people while trying to turn a chicken coop into a place to stay.

A 1945 poster letting tenants know about their rights under rent control.

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United States Office of Price Administration

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Illinois Digital Archives, Illinois State Library, and Secretary of State Alexi Giannoulias

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The ultimate solution would be more housing, but that would take years to improve. In the interim, the federal government deployed a rent freeze (and other price controls) in 1942 to ensure essentials remained affordable. Alisa Belinkoff Katz, lead author of UCLA’s study of rent control in L.A., says this move made rent control part of the war effort and more acceptable to landlords.

“It was considered sort of the patriotic thing to do, at least at first while the war was going on,” she said. “It became something that was widely publicized and that people were engaged in.”

That publicity campaign helped to make tenants aware of their rights. Landlords and renters were also required to sign a property registration form that recorded the rent amount under the freeze. To Katz, the tenants who kept tabs on compliance, along with federal enforcement, is what made the rent freeze effective.

A line of people outside of the rent control office at Broadway in Los Angeles on Nov. 5, 1942.

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Herald Examiner Collection

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Los Angeles Public Library

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Property owners register their rentals at the Broadway rent control office in Los Angeles on Sept. 25, 1942.

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Herald Examiner Collection

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Los Angeles Public Library

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The support of landlords didn’t last long, though. The L.A. County apartment association’s president at the time, David Culver, complained about treatment in a meeting with landlords, and together they vowed to take action. They argued that the rent cap was too low to afford taxes and maintenance, and some threatened to take their rentals off the market.

Once the war ended, rent control became a ticking clock. After a postwar federal housing act went into effect, allowing local governments to lose the rules, the L.A. City Council voted to decontrol. Residential rents went back under the sway of the market.

Property owners cheer as the L.A. city council votes 10 to 4 in favor of rent decontrol on July 2, 1950. More than 2,500 owners and tenants packed the council chamber.

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Herald Examiner Collection

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Los Angeles Public Library

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‘Stagflation’ in the 1970s and Proposition 13

Decades later, L.A. was in a different predicament.

An oil crisis was going on, aiding a surge in inflation while economic growth was at a snail’s pace. This is when the term “stagflation” was coined (a portmanteau of stagnation and inflation). Among a number of other things that became more expensive, L.A. home prices were skyrocketing along with owners’ property tax bills.

Landlords again organized around this issue. Howard Jarvis, then-executive director of the L.A. County apartment association, went down in history as the champion of 1978’s Proposition 13 — a measure that aimed to cap property tax rates. But in order for it to pass, he knew that the state’s renters — which made up 45% of households, according to Katz’s research — needed to be convinced to vote for the proposition.

Howard Jarvis and Paul Gann, co-sponsor of the measure, celebrating after Proposition 13 was declared a winner on June 6, 1978.

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Ken Papaleo

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Herald Examiner Collection/Los Angeles Public Library

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Landlords got involved to persuade their tenants. They argued that getting their tax bills reduced would trickle down to their tenants, too. Some even offered rent rebates if it was successful. But after Proposition 13 prevailed at the polls, the rose-colored glasses fell off. Despite what they’d said previously, many owners continued to raise their rents — some by more than 20% that same year.

“It should be an incentive to keep rents low, one would think,” Katz said. “But it hasn't worked out that way because property values continue to rise all over the city. [It helps landlords] because their taxes aren’t going up. So if their taxes are stable and their rents are allowed to increase all the time, then of course it helps them.”

In effect, the law was a type of rent control but for landlords, because it lowered their property taxes and limited increases.

Renters feeling the pinch

Demand for tenant protections was high in this decade, especially in middle-class communities. Renters had few rights and people were feeling the pinch.

“Our phone started ringing off the hooks,” said Larry Gross, executive director of the Coalition for Economic Survival. “It appeared that the speculators discovered Los Angeles. They were buying up rental units throughout the area, raising rent, putting a fresh coat of paint on it, some minor repairs, and then selling it again."

Gross was one of the key people leading the fight for rent control and helped organize tenant unions. He says some apartment buildings were getting flipped four to five times a year. And after Proposition 13, he says the “lid blew off” with rent.

“It was the first of many broken promises that landlords provided to their tenants.”

Renters rallied, urging L.A. leaders to take action. The city council members who represented white, middle-class districts supported the measures, but the ones leading Black and Latino districts did not. Back then, rising rent was viewed as a middle-class problem, and community leaders in lower-income districts worried that rent control would drive away investment in their communities.

Still, the council got enough support to roll back and temporarily freeze rents. Mayor Tom Bradley claimed it was a necessary step to halt “outrageous rent increases.”

The freeze gave the council time to draft a long-term response, which is where the Rent Stabilization Ordinance in place today came from. With this law, landlords can only increase rent in certain properties (built on or before Oct. 1, 1978) generally between 3% and 8%, based on inflation. (There’s a rent freeze on these properties currently because of COVID-19.)

Where we are now

Since the '70s, a lot has changed. Rent control has grown to multiple cities, but so have the legal battles surrounding it.

“It's literally been somewhat of a cat-and-mouse game with landlords,” Gross said. “Because landlords will find loopholes in the law and then use that to evict tenants or increase rent. And then we'd identify those loopholes and we get the city council to close them.”

Property owners looked to change these rules, too, and they got key laws passed from higher up.

New rent laws

1985: The Ellis Act, a California law that allows landlords to evict residential tenants in order to leave the rental business, passes. A landlord filed a lawsuit against Santa Monica, which instituted rent control six years earlier, for refusing to let him demolish his rental property, claiming it was in bad repair. He lost the case when it reached the California Supreme Court, but shortly after the state legislature passed the Ellis Act.

1995: The landlords’ grand slam, the Costa-Hawkins Rental Housing Act, passes. This was the state legislature’s response to landlords' building frustration with rent control laws, which were more regulated in some cities.

West Hollywood and Santa Monica, had the strict “vacancy control” rule. Under that provision, owners couldn’t raise rents to market rates between tenants, but small increases were allowed during tenancy. The act made that provision illegal statewide.

“It literally puts a bullseye target on the back of particularly low rent, long-term [rentals],” Gross said on the removal of vacancy control. “If they get those tenants out by any means, they can jack up rents to whatever they want.”

The act also prohibited rent control on residential properties built after Feb. 1, 1995, excluded single-family homes and condos, and generally tied city leaders' hands.

“It froze existing local rent control laws,” Katz said. “It had a huge impact because it prohibited what local governments were able to do to protect renters in their jurisdictions.”

2019: The Tenant Protection Act created a statewide rent increase cap. This cap is adjusted yearly based on inflation. It’s intended to prevent very large increases. And, coming soon, California will be voting on rent control in 2024 (for a third time).

Navigating rent control

It can be tough to easily understand how, when, and where rent control affects you. Everything can change depending on what city you’re in, your building type and when it was built.

Some basics you should be aware of are the main types of rent control:

• Rent freeze (rents are not allowed to rise at all in a given period).
• Vacancy control (rent can’t rise to market rates between tenants, but smaller increases are allowed during tenancy — this is illegal in California).
• Vacancy decontrol (rents can rise to market rates between tenants, and increases are allowed during tenancy — the standard in the state now).

Another way that rent control can change is with how much of the consumer price index, which measures inflation, gets factored in.

For example, the city of L.A. typically lets rent controlled properties increase between 3% and 8% a year, depending on the full rate of inflation. But Katz says that other cities have used a lower percentage of CPI. And the city of L.A. has a freeze on increases in rent controlled buildings until February 2024.

Cities with floors for increases, like L.A., can wind up with a problematic deal for renters and a better one for landlords if rents rise above CPI.

“Several times in the last few years, CPI has actually risen less than 3%, but landlords were allowed to raise the rents by 3%. So that's another question, whether that should be adjusted," Katz said.

Figure out where you stand

Rent control is a tangled web of seemingly boring rules, but it does have real effects. To supporters of the protections, the aim is about keeping things affordable and fair.

“It helps to give some security to tenants in a sense that it extends the protections that homeowners have,” Gross said. “What rent control does is level the playing field.”

If you're a renter and would like to know more about where your home stands with rent control, check out my colleague David Wagner’s cheat sheet to rent hike. If you’re in the city of L.A., you can also put your address into ZIMAS and check the housing tab to see what laws apply.

This story was originally published by CalMatters. Sign up for their newsletters.

California regulators ordered Health Net to fix how it’s handling the termination of assisted living services for low-income residents after the insurer’s abrupt decision left patients and providers scrambling. The state’s corrective action plan requires Health Net to extend services for all members until the end of the year, rather than stopping some as soon as October.

Health Net, one of the largest Medicaid insurers in the country, notified providers several months ago that it was ending its assisted living and home care services contracts. The services are optional under Medi-Cal — California’s version of Medicaid — meaning an insurer can decide annually whether it will continue coverage. Providers and family members said they got little or no warning, leaving them confused and panicked about finding other arrangements.

In an August letter to Health Net, the Department of Health Care Services cited eight deficiencies in the insurer’s handling of the change, including failure to submit transition plans for members, failure to move members to other medically appropriate care, and denying services to members. Regulators wrote that violations “jeopardize member safety, disrupt continuity of care, and endanger medically vulnerable members.”

If Health Net does not extend benefits and create individualized transition plans for each affected member, the state may fine them $25,000 per member per day of violation, the letter states.

Advocates and providers estimate about 3,500 Medi-Cal patients rely on Health Net to pay for assisted living costs. Most are elderly, and many have cognitive issues like dementia. Health Net operates Medi-Cal plans in 10 counties: Amador, Calaveras, Fresno, Inyo, Los Angeles, Mono, Sacramento, San Joaquin, Stanislaus and Tulare.

In a statement to CalMatters, Health Net spokesperson Beatriz Lopez said the company still plans to end the services next year, but will now cover all members through the end of the year.

“Health Net and DHCS share a commitment to advancing the health and well-being of Medi-Cal members,” Lopez said.

Health Net has previously told CalMatters the assisted living benefit “has not led to better care” in terms of fewer emergency room visits or days hospitalized. The benefit is part of CalAIM, a broad state initiative to improve Medi-Cal services and save money by stabilizing high-cost users who frequently end up in emergency rooms. Lopez said Health Net would continue analyzing data and supporting services that result in better health outcomes.

Providers confirmed to CalMatters that their contracts would run through the end of the year.

Thousands still face January deadline

Hagar Dickman, director of long-term services and supports at Justice In Aging, said the state’s corrective action plan resolves the immediate crisis but fails to address the long-term problem: “Thousands of older Californians are still set to lose their housing on January 1st.”

Allowing health insurers to cancel housing-related benefits creates problems, Dickman said, because most assisted living residents have no other home to return to. Additionally, the Department of Health Care Services has stated that if a member moves to another insurer that still covers assisted living, continuity of care protections would no longer apply, meaning the new insurer might not approve the member's assisted living costs.

"It’s disingenuous to say there are protections and then say the protections don’t apply,” Dickman said. "So the option is skilled nursing or homelessness.”

Pauline Shatara, deputy director of California Advocates for Nursing Home Reform, agreed that state protections are inadequate.

“It doesn’t sound like we found a solution to help pay for these people to remain where they are,” Shatara said.

Supported by the California Health Care Foundation (CHCF), which works to ensure that people have access to the care they need, when they need it, at a price they can afford. Visit www.chcf.org to learn more.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

This story first appeared on Long Beach Post.

Long Beach will make a slew of parking tickets more expensive and charge higher cannabis taxes to avoid cutting library hours and some specialized police officers. The last-minute change, proposed hours before a City Council vote, reversed a controversial plan city leaders laid out in June to lay off nearly a dozen library employees to help balance its budget.

Facing a $58 million shortfall, the city will still lay off roughly 180 other employees and cut hundreds more vacant positions. But it will spare library staffing and hours, after the original budget — which would have cut Monday hours at five city libraries, the only ones open that day — prompted fierce public backlash.

Long Beach City Council members voted 7 to 2 on Tuesday for the revised $4-billion city budget.

Councilmember Cindy Allen, who objected, called the increased parking fines “predatory fees,” arguing that library funding shouldn’t come at the expense of unfairly targeting people already struggling financially. Allen represents a district that includes the densely populated Alamitos Beach and Rose Park neighborhoods, where parking is already scarce. “We don’t have driveways,” she said.

Kristina Duggan, who represents southeast Long Beach neighborhoods like Belmont Shore, also voted against the budget because it cut Fire Engine 14 near Colorado Lagoon, a move that’s expected to save $3.88 million but drive up response times.

Duggan and Allen both tried but failed to delay the budget vote, with Allen saying the changes were put together in a “slapdash manner” without a chance for the public to weigh in.

She warned her colleagues before the vote that if they approved the budget “without substantial discussion” then they were “complicit in rubber-stamping” a plan that would “affect people’s livelihoods.”

Under the plan, 18 categories of parking citations — including for blocking bike lanes, hydrants, double parking and crosswalks — will rise to a flat $100, up from $74 or $90, to generate $1.5 million. Street sweeping tickets would also get a $5 bump, to $80 — a difference that raises $700,000 in revenue.

In the last fiscal year, which ran Oct. 1 to Sept. 30, the city issued more than 100,000 parking citations and 201,000 street-sweeping tickets, Public Works Director Josh Hickman said. More than a fifth of street-sweeping tickets were written in Allen’s district, and more than half of all parking tickets citywide were issued in the first two council districts, which include downtown and Alamitos Beach.

John Edmond, a local lobbyist who sits on the board for the Library Foundation and spoke in support of the plan, said the $100 rates are on par with cities like San Francisco ($108), Oakland ($110), San Diego ($117). He argued this applies to the “most serious parking violations.”

“We can’t say we’re serious about pedestrian and bicycle safety without accountability,” he said.

The budget also raises the city’s cannabis retail tax from 7% to 8% and increases the cultivation tax to more than $15 per square foot, changes expected to bring in roughly $1.15 million.

The proposals came from Councilmember Joni Ricks-Oddie, who chairs the city’s Budget Oversight Committee. Ricks-Oddie said earlier Tuesday she had spent weeks preparing these and dozens of other recommendations in concert with city staff, continuously updating them to accommodate new requests that came in from the public and fellow council members.

“If we can’t do this … then we can’t fund the libraries,” Ricks-Oddie said in response to Allen’s concerns about pricier parking citations. “If we reject that, we’re saying no to our library hours on a Monday.”

The budget also sets aside $1 million for the city’s immigration legal defense fund, the Long Beach Justice Fund. That’s well short of the $2.2 million immigration attorneys and local immigrant rights groups say is needed to sustain it amid rising caseloads. Gina Amato Lough of Public Counsel’s Immigrants’ Rights Project said “the need has never been greater,” citing prolonged detentions, warrantless raids and difficulty accessing counsel.

Since Public Counsel’s $919,000, one-year contract to provide legal services began in November, the group has taken on more than 55 consultations and 46 full-scope cases through the Justice Fund.

After hearing repeated pleas for more money Tuesday, Allen proposed reallocating all the funding for Long Beach’s new Vibe City marketing campaign — which some have derided as a waste of money — to the Justice Fund. She was quickly shot down, with a representative from the City Attorney’s office saying they’re not sure that would be legal, considering the Vibe City campaign is funded by tax revenue earmarked for advertising and promoting the city.

City Council leaders called the budget cuts a necessary, if painful, step toward stabilizing Long Beach’s finances after years of instability papered over with one-time cash — a bet that higher fees now will spare deeper cuts later.

“It’s hard, and it’s personal for everyone, and it will be really difficult on families across this community,” said Councilmember Megan Kerr.

This story first appeared on The LA Local.

Colorful parade floats, charros on horseback and live music will take over Cesar E. Chavez Avenue on Sunday for the 80th East L.A. Mexican Independence Day Parade.

For decades, organizers have brought together community leaders, performers, businesses and organizations to celebrate culture, community and tradition. This year, the parade will culminate in a festival with family-friendly activations, including live music, local vendors and lucha libre. 

This year’s co-grand marshals are singer and actor Dasahev López Saavedra, better known as El Dasa, and Los Angeles County Supervisor Hilda Solis.

Here’s everything you need to know.

When is the parade and festival?

The parade runs from 10 a.m. to 1 p.m. on Sunday, Sept. 13. The festival takes place from 11 a.m. to 4 p.m. on First Street and Mednik Avenue. 

What’s the parade route? 

The 1.5-mile route will run along Cesar E. Chavez Avenue, starting at Mednik Avenue and ending on Gage Avenue. You can find a map of the parade route and other festivities on the festival’s webpage here. Early arrival is suggested to secure a viewing spot for the parade. 

A map of the East LA Mexican Independence Day Parade route.

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Courtesy of the organizers

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What streets will be closed?

• Mednik Avenue: Between 1st Street and Cesar E. Chavez from 5 p.m. Saturday, Sept. 12 to 9 p.m. Sunday, Sept. 13.
• Cesar E. Chavez Avenue: Between Vancouver Avenue and Gage Avenue from 6  a.m. to 3 p.m. Sunday, Sept. 13.

What can I expect at the festivities?

The parade will feature floats, show cars, representatives from Eastside organizations, equestrian teams, marching bands and folklórico dancers. 

The festival will include vendors, musical performances, resource booths, a pop-up from local boutique The Goddess Mercado, a free pet vaccination clinic that will administer free vaccines for the first 200 pets, and a free lucha libre showcase by East Los Lucha. 

Where can I park? 

Limited free parking will be available at the East L.A. Civic Center lot located on E. 3rd Street and Civic Center Way. Attendees can also find street parking in the surrounding area. 

Can I take public transit to the event? 

The Metro E Line’s East L.A. Civic Center station is just a short walk from the event. 

What if I don’t want to attend in person? 

If you’re unable to attend or want to watch the parade from home, you can tune in to the live broadcast on ABC7. 

For more information, check out the website here. 

This story first appeared on The LA Local.

Robbie Hall has a record of the people she has treated for overdoses at MacArthur Park.

The photos of many of the people she has treated are saved on her phone. She can scroll through them and remember each one.

Hall, an ambassador with the nonprofit Five Keys, has been doing this work for about four years and is at the park almost every day, carrying Naloxone, a medication used to reverse opioid overdoses.

She typically responds when someone stops breathing.

“I stopped counting when I got up in my 40s, because it started being gradually three of them, four of them,” Hall said. 

On a recent September morning at the park, Hall said she found a 14-year-old girl in a bathroom who was experiencing an overdose. Tears welled up as she talked about the people she encounters at the park.

“They need help, they need help,” she said. “This is every day.” 

She believes the city needs to address the problem. When asked about the plans to fence the park, she said she sees the fence as one way to improve the conditions she sees on the ground.

“They need to put something up here,” she said.

For Hall and others who work around the park, the fence is less a solution than a stopgap, something concrete to try amid problems that have proven harder to solve.

The Department of Recreation and Parks says the fence will be temporary and is still on track for construction this fall, but has not provided a specific date, cost estimate or explained what conditions would need to change before the fence comes down.

Marco Pacheco, president of the MacArthur Park Park Advisory Board, does not believe the fence will be temporary. 

“I think this is going to be permanent,” Pacheco said. “This is going to be a permanent fixture of some sort because first of all, you don’t put up a fence that costs millions of dollars to take it down. It doesn’t make any sense.”

Pacheco isn’t the only one who has doubts.

Richard Barron, who served on the Cultural Heritage Commission for 22 years before departing in July, also questioned whether the city would follow through on its promise to remove the fence.

“I doubt that the fence is going to come down,” Barron said, “especially when they’ve spent all that money. Even taking it down costs a lot of money, you know, and you’re going to throw all that material away?”

The Board of Recreation and Park Commissioners approved $2.3 million in funding for the project. The city has not said how much money will ultimately be spent on the fence.

Everyone has a different idea of what the fence will do

The city’s consultants have described a fence that would be transparent, reversible and designed to blend into the park.

Leila Hamroun, a senior preservation architect with Tetra Tech, the consulting firm working with the city on the project’s design, said the fence won’t be a dominant feature.

“The whole intent here is to guarantee that it just blends in, that it’s seamless,” Hamroun said. “It’s reversible, transparent, minimalist, consistent with the evolution of urban parks over time.”

A rendering shows the proposed green metal fence around MacArthur Park.

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Courtesy L.A. Recreation and Parks

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The fence is expected to be about 8 feet tall, with gates at eight existing entrances. Decorative elements would be considered separately, with community input expected next year.

For Michelle Garcia, who has been a vendor around MacArthur Park since 2015, it could help distinguish vendors from the people living in the park.

“I support it if they could get the homeless people out,” Garcia said. “They are the ones that make MacArthur Park look bad. But they also make us look bad, because we sell around the area, so they think we’re like them, which we’re not.”

Garcia was among a group of vendors at MacArthur Park who held a Sept. 2 press conference to call attention to what they described as police harassment and citations that pushed vendors away from the park.

“Like us, we’re trying to work and get money for our bills, our rent,” she said.

Police have their own expectations for what a fenced park could accomplish.

The Los Angeles Police Department has stepped up enforcement around the park through a joint task force with the Drug Enforcement Administration focused on drug dealing in the area. In July, Rampart Division Capt. Benedict Fernandes said the operation had significantly disrupted the drug trade, but that drug users were spreading into surrounding neighborhoods in search of narcotics.

“We know that all the communities around have been impacted because it got spread this way, sort of like a shotgun blast,” he said. “It went south, it went east, it went north, it went west.”

Fernandes said the next phase of the enforcement effort would focus on connecting unhoused people and drug users with shelter and recovery services.

The fence, he said, is meant to make the park less convenient for drug activity and “prevent crime” inside the park.

“Because that’s the problem,” Fernandes said. “The Alvarado corridor at MacArthur Park has been convenient for drug users for years. We’re just trying to make those things stop.”

Fernandes said the temporary fence along Alvarado and now the orange bollards installed in the area, have worked to disrupt that activity. 

But Hall, the outreach worker administering Narcan at the park, has not seen those types of improvements on the ground.

“Since they did that big bust? No, it got worse,” Hall said when asked whether she had seen fewer overdoses in the area.

She said people wait for police to leave the park before returning.

“If it wasn’t for Five Keys, there would be a lot more dead bodies here,” she said.

Some residents say that adding a fence around MacArthur Park would change the makeup of the neighborhood. Others welcome a change to the troubled park.

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Gary Coronado

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The LA Local

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How the fence is supposed to work

The plan calls for the park to remain open during the day, with eight entry points, and close overnight from 10 p.m. to 6 a.m. LAPD would close the gates at night, and Recreation and Parks maintenance workers would reopen them each morning.

The department says the fence is intended to make the park easier to maintain. Illegal dumping, littering, vandalism and graffiti have made routine maintenance difficult, according to the department, which has said MacArthur Park generates more graffiti cleanup requests than nearby Lafayette Park.

The city has pointed to nearby Lafayette Park, which is fenced and closed at night, as a model for MacArthur Park.

Pacheco, the president of the park’s advisory board, said he has heard general support for the fence among community members. 

“In many cases, community members alluded to Lafayette Park having been fenced for a long time, the difference between the two parks, Lafayette being a lot safer and a lot cleaner and less of a problem than MacArthur Park,” he said. 

The fence still needs final approval from the five-person commission that approved the project’s conceptual phase in October. The commission has not yet set a date to consider the final plans.