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City Council adopts update to Rent Stabilization Ordinance after hours of debate
Summary
After hours of public comment and multiple floor amendments, the Los Angeles City Council voted to update the Rent Stabilization Ordinance (item 47), changing the CPI formula and adopting new floors, ceilings and a rent-banking mechanism intended to smooth future increases. The final motion passed as amended by a 12-2 vote.
The Los Angeles City Council on Nov. 12 adopted a package of changes to the city—s Rent Stabilization Ordinance (RSO) after an extended public-comment period and several roll-call amendments.
Councilmember Raman, chair of the Housing and Homelessness Committee, urged the change on behalf of renters, saying the 40-year-old formula is outdated: "Only greater supply will sustainably reduce costs for all renters in LA, but I also believe that our rent stabilization formula is overdue for a change." The Housing Department—s Anna Ortega told the council the department—s recommendations shift from an all-items CPI to an all-items-less-shelter index, lower the ceiling and floor, and introduce "rent banking," a city-administered mechanism to roll excess or shortfalls into future years to stabilize annual allowable increases.
The debate produced a series of amendments. A substitute minority report was defeated (4 ayes, 10 no). An amendment to include rent banking on both the high and low ends failed; however, a 90%-of-CPI amendment (as adopted in final package) and related instructions to planning and LAHD to study impacts on future housing development were approved. The council adopted item 47 as amended by a final vote of 12 ayes and 2 noes.
Supporters, including tenant and labor advocates who lined up to testify, argued the package would curb runaway increases and protect seniors and low-income renters. Yvonne Wheeler, president of the Los Angeles County Federation of Labor, said during public comment: "We are urging you to vote yes on a reasonable 3 to 4% cap with a 60% CPI." Opponents, including landlord groups and some housing providers, warned the changes could reduce maintenance funding and discourage investment; Fred Sutton of the California Apartment Association said the proposal would "make housing more expensive and harder to find."
The adopted package: changes the CPI reference to an agreed index (all-items less shelter), sets new floor and ceiling percentages as amended on the floor, and includes a rent-banking mechanism to spread unusually high or low adjustments over future years. LAHD said that under its recommendation, the allowable annual increase on 7/1/2026 would be 2% instead of the 3% that would result under the previous formula.
The motion also directs LAHD and City Planning to report back on impacts to housing production and small-property owners and preserves the current just-and-reasonable (J&R) application process as a safety valve for landlords to request higher adjustments when documented operating losses occur.
The council—s action ends a multi-year review of the RSO formula and sends the revised ordinance to be implemented and tracked by LAHD. Council staff and LAHD noted additional implementation steps, including public education about the new calculation and outreach to landlords about J&R procedures.
