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Los Angeles approves 3% rent increase cap for rent-stabilized apartments

The reform comes as immigration raids make it difficult for families to work and pay their rent on time.

Photo of the Los Angeles City Hall
A few people use Grand Park at the foot of Los Angeles City Hall, Tuesday, March 31, 2020, in Los Angeles. The new coronavirus causes mild or moderate symptoms for most people, but for some, especially older adults and people with existing health problems, it can cause more severe illness or death. (AP Photo/Mark J. Terrill)

This article was published in collaboration with the Daily Trojan’s Spanish Supplement. Si gustas leer este artículo en español, haga clic aquí.

On November 12, 12 of the 15 Los Angeles council members approved a reform that caps rent increases for rent-stabilized apartments to 3%. This is one of the largest changes made to the Los Angeles Rent Stabilization Ordinance since 1985.

The change reduces the maximum limit from the previous 8% and lowers the minimum limit for rent increases from 3% to 0%.

This new reform will apply to all apartments built before 1978.

For many renters who already spend nearly all of their income on housing, the reform reflects a long-needed adjustment. Approximately 44% of Los Angeles residents currently live in rent-stabilized apartments. Of these, 238,000 use more than 90% of their income to pay their rent.

Under the old 3% to 8% limit, rent increases have outpaced inflation in 23 of the last 30 years, placing a strain on low-income families.

Victor Palacios, a second-year graduate student in digital media management, has lived his entire life in a rent-stabilized apartment with his family. For him, the protections in place for rent-stabilized apartments are what kept him in his home.

“That’s what keeps us in the apartment, is that we will never find anywhere else with the price that we’re paying currently”, said Palacios, explaining the importance of the 3% cap, “It’s good that it’s helping people stay at a place that they have been for a long time [...] since other things have gotten expensive [...] having that rent cap can really benefit to alleviate a lot of economic pressure”.

According to the Alliance of Californians for Community Empowerment (ACCE) Action, the impact of rent increases has been especially damaging in low-income communities around USC.

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ACCE Action is a statewide, grassroots, member-led community organization dedicated to giving a voice to everyday Californians, with more than 15,000 members across the state.

Sergio Vargas, co-director of ACCE Action’s LA subcentral region, explained that while the 3% cap is a step forward, it won’t be enough for many families.

“The 3% was already a negotiation: our members and we, believe they should be lowering rents or freezing them, which we achieved during the pandemic,” Vargas said in Spanish, explaining that for many residents, money is tight. “There isn’t much money, so there are many people living in houses with other families, and it’s very difficult to pay these very high rents.”

Nancy Villanueva, the lead organizer for ACCE Action, described how ACCE Action works with many low-income districts, with a membership comprised of street vendors, day laborers, and domestic workers.

“These jobs are very low-paying: their income is very low,” Villanueva said in Spanish, explaining how many members do everything they can to pay their rent. “They’ve cut back on food, they’ve cut back on certain necessities like paying the phone bill, among other things, to be able to pay their rent on time.”

The neighborhoods Villanueva and Vargas work with are negatively affected by their proximity to USC.

“Corporate owners are coming in and buying from small landlords to build and offer high rents because there are students who can afford to pay $3,000,” Vargas said. “Our people who have been paying for 20 or 30 years [...] are paying between $600 and $1,200, and there’s an incentive to evict them so they can raise the rent to market rates.”

All of this is happening against a backdrop of tension in the Latine community of Los Angeles. According to Villanueva, due to the recent increase in immigration raids, many residents have stopped going to work.

“Many street vendors stayed home for several days out of fear,” Villanueva said.

On October 14, Los Angeles County declared a state of emergency due to immigration raids. The proclamation grants the county the power to assist residents who have been financially impacted by the raids.

“People haven’t been going to work.” Vargas said, “This has led to people falling behind on their rent because they haven’t been able to work [...] People are going hungry to pay their rent”.

Although the reform represents a step forward, Vargas and Villanueva assert that the city must do more. Vargas specifically calls for the implementation of laws against landlord harassment.

“There are horrific cases of verbal abuse, physical abuse, and people living in deplorable conditions,” explained Vargas. “The city attorney is choosing not to take these cases.”

Vargas also criticized the city’s budget priorities at a time when its residents need help.

“Instead of investing billions in a Convention Center, they should have given rental assistance to all those tenants who can’t pay right now, who are two or three months behind on rent, who are about to receive an eviction notice next month,” said Vargas.

The City Council’s decision marks an important step forward for rent-stabilized tenants, but the Palacios’ story and the work of Vargas and Villanueva reflect how the housing debate in Los Angeles is far from over.