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Committee directs city attorney to tighten RSO transition wording to block utility surcharge increases
Summary
The committee voted 4‑0 to request the city attorney draft an amendment clarifying that rent‑increase notices taking effect on or after the RSO formula effective date cannot include additional utility surcharges; housing staff said their website guidance reflected the ordinance's Feb. 2 effective date and would be updated if council amends it.
The Housing and Homelessness Committee voted Jan. 14 to direct the city attorney to draft an ordinance amending subsection d of Los Angeles Municipal Code section 151.06’s transition provisions so that rent increases taking effect on or after the ordinance’s effective date cannot include an additional utility‑based increase.
Council member discussion and public comments centered on whether notices served before the ordinance’s effective date could still take effect after that date and therefore capture a utility ‘‘bump.’’ Christina Boyer, an attorney with Public Counsel, told the committee the existing wording could allow landlords to lock in utility increases for notices served before the change and urged the committee to close that loophole.
City Attorney representative Peter Wofford and a housing department representative (Anna) explained the ordinance’s effective date is Feb. 2 based on city clerk publication and that LAHD posted guidance reflecting that interpretation. Wofford said the proposed motion would shift the controlling date from when notice was served to when a rent increase takes effect, preventing landlords from relying on prior notices to capture an additional utility adjustment once the new formula is in force.
Fred Sutton of the California Apartment Association cautioned that changing the transition timing could create regulatory whiplash and potentially put housing providers who relied on the earlier posting out of compliance; housing staff said they had received many inquiries but had not identified intentional illegal increases to date and would update educational materials as needed.
Outcome: The committee approved the motion directing the city attorney to draft the ordinance language by recorded vote (4 ayes, 0 noes, 1 absence). The vote followed clarifying exchanges about how multi‑year leases and notices interact with RSO timing and about LAHD outreach to landlords and tenants.
Next steps: The committee’s vote sends the matter back to the city attorney for drafting. LAHD said it would revise website guidance to reflect any change approved by council and would continue outreach and workshops to explain allowable rent increases.
