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In September 2006, the LA City Council hired Economic Roundtable, a consulting firm, to conduct a comprehensive “Economic Study of the Rent Stabilization Ordinance (RSO) and the Local Housing Market.”
The Council also appointed an RSO Study Oversight Committee. The 7-member committee was selected from tenants’ rights and landlord organizations. Coalition for Economic Survival (CES) Executive Director Larry Gross, Legal Aid Attorney Barbara Schultz, and UCLA Professor of Urban Planning Neal Richman were appointed to the Committee to represent renters’ interests.
The Study found that the RSO covers 66% of LA’s inventory of rental units. However, the majority of LA renters are rent-burdened, paying over 30 percent of their income for rent, and roughly a third are severely rent-burdened, paying half or more of their income for rent.
Strengths of the RSO include that it covers a large segment of households in LA, most of whom are at low-income, and protects them from rent rouging and arbitrary eviction, while allowing owners a reasonable return on their investments.
Major Trends in LA’s Rental Housing Market Found in Study
Key RSO Study Findings
• 58% of LA tenants are rent burdened, which means they pay more than 30% of their income to rent, with 31% being severely rent burdened, paying more than 50% of their income to rent.
• 56% of those with annual incomes of $35,000 or less are severely rent burdened, paying 50% of their income to rent.
• 27% of RSO tenants received illegal rent increases.
• 1/3 of all renters didn't know or were wrong about whether they were covered by rent control.
Tenants’ Rights Organizations Respond
The Call to Action platform includes the following:
- Eliminating the minimum 3% annual rent increase floor.
- Eliminate the additional 1% rent increase where landlords pay for gas &/or electricity.
- Require landlords to register current rent levels of their units with the Housing Department.
- Oppose all additional pass throughs that increase the rent burden to tenants.
Contact CES to become involved in this important campaign to strengthen LA’s rent control law.
To view the various reports and recommendations, click on links below:
Economic Study of the Rent Stabilization Ordinance (RSO) and the Local Housing Market (Full Study)
Economic Study of the Rent Stabilization Ordinance (RSO) and the Local Housing Market (Executive Summary)
Economic Study of the Rent Stabilization Ordinance (RSO) and the Local Housing Market (Power Point Presentation)
Los Angeles Housing Department’s Recommendations in Response to RSO Study
Call to Action Member Tenants’ Rights Groups’ Recommendations in Response to RSO Study
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