• Only one rent increase is allowed in a 12-month period, and it cannot exceed the allowable rent increase in effect for that period.

• The City will publish the maximum allowable rent increase no later than May 31 of each year, which shall be effective on August 1 of that year.

• Landlords may file Petitions for Relief if they contend that the limitations on rent increases prevent them from receiving a fair and reasonable return with respect to operation of the property, subject to approval by a Hearing Officer.

• Tenants may file Petitions for Noncompliance if they contend that a proposed or actual rent increase is not in compliance with the Ordinance, subject to approval by a Hearing Officer.

• Landlords must qualify terminations of tenancy as a For Cause (e.g., nonpayment of rent or use of the unit for illegal activity) or No Fault (e.g., demolishing a property or undertaking significant work on a building) reason to vacate a unit.

• For vacancies that qualify as No Fault, landlords must provide a financial relocation fee. The relocation fee ranges between $5,926 and $15,377, dependent upon certain factors such as length of tenancy, income level and number of units owned by a landlord in the City.

No landlord may terminate a residential tenancy of a tenant occupying a rental unit unless the landlord can demonstrate all of the following: 

• The Landlord has served the tenant with a Notice of Termination in accordance with State law and the Ordinance.

• The Landlord has not accepted or will not accept rent beyond the term of tenancy beyond the term indicated in the Notice of Termination.

• The termination qualifies as a For Cause or No Fault termination.

Just Cause Termination occurs when a tenant has broken the rental agreement. Some examples include:   

• Failure to pay rent

• Material breach of rental agreement

• Refusing to allow owner access to premises

• Maintaining, committing, or permitting a nuisance

• Using premises for unlawful purpose

A tenant who has not broken the rental agreement can still have their lease terminated. Some example include:  

• Demolishing or remodeling the residential real property

• Removing the unit from the rental market

• Converting the unit to a resident manager unit where none exists

• Performing substantial work on the building(s) housing the rental unit

• Recovering possession of the rental unit for use by a resident manager

• Recovering possession of the rental unit as the primary residence

This Ordinance shall not apply to any dwelling units expressly exempt pursuant to any provision of state or federal law, and such units shall be exempt from the provisions of this Urgency Ordinance. The following dwelling units are specifically exempt: 

• Any dwelling unit that has a certificate of occupancy or equivalent permit for residential occupancy issued after February l, 1995. For this purpose, certificate of occupancy is the certificate first issued before the property is used for any residential purposes; or

• Any dwelling unit that is alienable separate from the title to any other dwelling unit, including single family residences, condominiums, and townhomes.

• Any dwelling unit that is a subdivided interest in a subdivision, as specified in California Business and Professions Code Section 11004.5 (b), (d) and (t).

• Any dwelling unit for which the Landlord receives federal, state, or local housing subsidies, including, but not limited to, federal housing assistance vouchers issued under Section 8 of the United States Housing Act of 1937 line 9 (42 U.S.C. Sec. 1437f).

The Ordinance provides a process for landlords and tenants to contest the rent increase. Either party is able to file a petition with the City.

• Landlords may file a Petition for Relief from the Ordinance if they desire to increase the rent above the cap allowed in the Ordinance because it prevents the landlord from receiving a fair and reasonable return on their property.

• Tenants may file a Petition for Noncompliance if they feel the proposed or actual rent increase does not comply with the Ordinance.

• The petitions are heard by a Hearing Officer.

The maximum annual rent increase effective August 1,2023-July 31, 2024 is based on the lesser of 4% or the CPI Percentage Increase for the Los Angeles-Riverside-Orange County, CA area, which is computed as follows:

    CPI % Increase = CPI for Jan. of Current Year – CPI for Jan of Prior Year  x 100                                                                                     CPI for January of Prior Year

The January 2023 index was 318.591.  The January 2022 index was 301.209. 

Accordingly, the calculation for 2023 is as follows:

Therefore, the Annual Allowable Rent Increase effective August 1, 2023 is 4%.