Romy Ganshaw, chief deputy city attorney for the Santa Monica City Attorney's Office, and Rent Control staff told a Dec. 10 forum that the Rent Control Board adopted a regulatory change limiting how landlords may apply "banked" general adjustments.

Rose Patel, a public information analyst at the Rent Control Board, said landlords who forgo annual general adjustments may previously have collected multiple years' increases at once. Under the revised rule, she said, "the new change is going to limit them to a 10% increase in a 12 month period." Patel added the change took effect Oct. 15 and that tenants may seek relief through existing excess-rent petitions for increases that exceed the 10% limit.

Andrew, a City Attorney's Office attorney who presented on price gouging, said California's Penal Code 396 makes it unlawful during a declared emergency to advertise, offer or charge housing to an existing or prospective tenant at a price more than 10% above a defined base rent. He explained how the statute defines the base rent in different scenarios (rent paid within one year, recent offered rent, or a percentage of fair-market rent adjusted locally by the county) and noted a 5% additional allowance when a unit is offered fully furnished.

Andrew said the governor declared a state of emergency for the Palisades fire on 01/07/2025 and that Los Angeles County extended price-gouging protections through 01/28/2026; he said violations may be prosecuted as misdemeanors and may also give rise to unfair-competition claims under business and professions law.

The City Attorney's Office also reviewed Santa Monica Municipal Code section 4.36.020(a)(5), which requires a permanent relocation fee when a tenant relinquishes tenancy within 120 days after service of a rent-increase notice that exceeds the higher of CPI-plus-5% or 10%. Andrew described the relocation fee schedule as updated annually (July 1) and explained that fees must be placed in escrow within two working days of tenant notice and paid promptly on request or when the tenant vacates.

Why it matters: the regulatory and enforcement changes narrow the circumstances under which landlords can impose large, lump-sum increases, offer a criminal enforcement path under state price-gouging law during emergencies, and clarify when relocation assistance is payable.

What's next: Rent Control staff said they will continue to process excess-rent petitions. The City Attorney's Office said reports of suspected price gouging may be referred to its office, the Los Angeles County district attorney or the California Department of Justice.