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LA City Council Approves Lower Rent Caps for RSO Units
11.21.25
| The Los Angeles City Council approved an update to the Rent Stabilization Ordinance, using a new formula that will set allowable increases for roughly 650,000 units at 4% and remove additional charges for electricity and gas — the most substantive changes to the policy in more than four decades. The update approved by the council establishes a 1% floor and 4% ceiling for allowable annual rent hikes. Council members also recommended updating the rent-setting formula to account for inflation, using 90% of the Consumer Price Index rather than the 60% the committee had suggested. Additionally, rent increases of 1%-to-2 % allowable under the current rules for landlords who cover gas or electricity will be eliminated. The changes will also prohibit additional rent hikes for renters with extra dependents. “Housing and Homelessness have been a cornerstone of my agenda for the LA Labor Movement, and I made it a priority because this issue is important to our affiliates”, said Yvonne Wheeler, President of the LA County Federation of Labor. “It used to be that a union contract would provide enough so people could live where they work, but unfortunately, that’s no longer the case due to runaway housing costs and skyrocketing rents, and a structural crisis of low-wage jobs. The LA Labor movement believes that people should be able to live where they work, and that people should be able to have a voice in the city where they work, and that’s why we’re all in on LARSO,” said President Wheeler. A special thanks to the members of UAW, CFA, UTLA, SEIU 2015, SEIU 721, SEIU- USWW, SEIU UHW, SEIU 99, SEIU CIR, 121RN, NUHW, UNAC, AFM 47, IATSE 33, IATSE 728, IATSE B192, IATSE 839 (TAG), UNITE HERE, Teamsters 396, and UFCW 770 for their testimonies and outreach efforts that made this victory possible. |
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