by Christie Slatcher, November 10, 2022
Last week, the LA County Board of Supervisors granted tentative approval a new ordinance that will cap rent increase amounts and create minimum rent debt before evictions can be started for unincorporated cities of LA County. A second vote, which is required to ratify the law, is expected before the end of November.
Minimum Rent Debt Requirement to File Eviction for Non-Payment
Under a new ordinance, Landlords for properties located in unincorporated cities of Los Angeles County, will only be allowed to file eviction for non-payment of rent if the outstanding rent amount exceeds the fair market value of one month’s rent, based on the size of the rental unit. Rent amounts below the threshold will have to be sought in small claims court, of which those judgements usually can only be collected through the help of a collection company, which typically charges 40-50% of the amount owed to collect.
Temporary Rent Increase Cap of 3% Effective January 1, 2023
The Board of Supervisors also has imposed a temporary rent increase cap of 3% on unincorporated cities of Los Angeles County beginning January 1, 2023 through December 31, 2023. Although the increase does not seem like much, it does mark the end of a nearly three-year ban on rent increase for these cities. However, rental units that are defined under RSO as luxury units will be subject to a maximum allowable rent increase of 5%.
Tenants in the area still don’t feel these restrictions go far enough to protect their ability to afford housing in the area. However, most Landlords find such restrictions ludicrous and unjust and believe that such restrictions will only further the housing crisis by decreasing the supply of housing and forcing Mom and Pop owners to sell off their properties to institutional investors who will continue to run rents up even higher.