Los Angeles Mayor Karen Bass signed a new rent stabilization ordinance Tuesday, marking the first major change to the city’s rent-control law in more than forty years.
The ordinance caps annual rent increases at a range of 1% to 4% and eliminates additional utility charges for apartments built on or before October 1, 1978.
During a morning news conference in South Los Angeles, Bass formally enacted the regulations for rent-stabilized buildings, finalizing work the City Council had begun in recent months.
“No parent should have to choose between buying groceries or paying the rent, or live in fear of eviction because they have welcomed a child into their family,” Bass said. “In partnership with the City Council, we are enacting new tenant protections and capping the rent for apartment units protected under the city’s Rent Stabilization Ordinance. This new law protects renters while also streamlining processes and resources for housing providers so that more Angelenos can not only make the rent but live full and stable lives.”
Councilman Hugo Soto-Martinez joined Bass and members of Strategic Actions for a Just Economy. He added, “Being able to afford rent is not a luxury — it’s a basic necessity. For the first time in 40 years, we are taking meaningful steps to ensure more Angelenos can afford to live where they work and continue to thrive in the communities they serve. It will support families and make sure people are not priced out of LA.”
The Rent Stabilization Ordinance (RSO) will set annual allowable rent increases between 1% and 4%, based on 90% of the Consumer Price Index. The cap applies to properties in Los Angeles with two or more units built before October 1, 1978-more than 650,000 units in total.
Additional changes include the removal of separate electricity and gas charges and a prohibition on rent hikes for extra tenants such as babies or elderly family members under the care of the primary residents.
Under the new rules, landlords can still raise rent by 10% for additional non-dependent occupants, a change that keeps the old allowance in place.
SAJE director of research and policy Kyle Nelson praised the measure. He said, “There are so many economic crises our city is facing right now — the ongoing impact of the wildfires, federal immigration raids, and looming federal budget cuts. SAJE commends Los Angeles City Council and Mayor Bass for supporting this new rent cap, which makes life easier for everyday Angelenos who are struggling financially.”
Members of the Keep LA Housed coalition, which SAJE leads, were also present. The coalition, composed of community members, tenant and housing advocates, and legal service providers, worked to secure the legislation.
Critics argue that the ordinance will further strain housing providers, who already contend with rising labor and materials costs for new developments and maintenance of existing properties.
The law is slated to take effect late next month, after the city’s council has completed final procedural steps.
With the cap set at a lower range than the previous 3%-8% limit and the removal of utility fees, the ordinance aims to ease financial pressure on renters while maintaining a framework for landlords to manage costs.
City officials emphasize that the new protections will help families avoid eviction and ensure they can afford both housing and basic necessities.
