San Leandro council debates rent-stabilization parameters; directs staff toward a mid-range CPI cap

San Leandro City Council members spent the work session weighing options for a draft rent-stabilization ordinance that would limit annual rent increases and set rules for capital-improvement cost recovery.

Council members repeatedly described the proposal as a package of interdependent choices: a percentage cap tied to the regional consumer price index (CPI), whether unused increases may be banked for future years, and how capital-improvement costs would be passed to tenants. No ordinance was adopted at the session; instead the council gave staff direction and asked for a revised draft reflecting majority preferences.

“I'm not supportive of 5%. I would like to start off the conversation at 3% and include a 65% of CPI,” said Council member Rivera Walton, arguing the city’s income levels require a lower starting point. Council member Aguilar urged staff to “amend the rent cap limit to annual allowable rent increases to 65% of the regional consumer price index, not to exceed 3.5% in any year,” and to apply a case-by-case fair-return process for capital improvements.

Several…