Chapter 5 – Renters Alliance

City Council pictured at the formal meeting June 27, 2023

City Council Agrees to 3.2% Chapter 6 Rent Increase

July 9, 2023March 25, 2024 Mark Elliot Chapter 5, max increase

City Council approved a maximum allowable annual rent increase for most rent-stabilized tenancies at 3.2% effective July 1. That percentage was recommended by staff as a return to the customary practice of indexing the rent increase to inflation. City Council also disallowed landlords from recovering rent increases missed due to the moratorium. Together with a 5.9% rent increase for Chapter 5 households, the outcome was City Council’s effort to close the book on the pandemic.

Lili Bosse at the June 27, 2023 formal City Council meeting

Commentary

Our Take on the 5.9% Chapter 5 Rent Increase

July 8, 2023July 5, 2024 Mark Elliot Chapter 5, max increase

City Council has approved a maximum allowable annual rent increase for Chapter 5 rent-stabilized tenants that is the highest percentage in three decades. At 5.9% it is nearly twice the rate of inflation for our region and it will fall hardest on our longest-term renting households that are almost exclusively headed by seniors who live on a fixed-income. Meanwhile these households are also exposed to a variety of possible pass-through surcharges (including for seismic retrofit). What are our councilmembers thinking?

Chart of Chapter 5 allowed annual increase through August 2018

Analysis

City Has Been Incorrectly Calculating Chapter 5 Increases

June 29, 2018July 5, 2024 Mark Elliot Chapter 5, max increase

A couple of months ago we got to thinking about how Beverly Hills calculates the maximum allowable annual rent increase for Chapter 5 tenants. It kept increases very low for many years; some years it dipped below 1%. Then in a reviving economy it jumped to 1.7% and now will double again to 3.3% for August. What’s going on with the Chapter 5 increase?

News

Chapter 5 Rent Stabilization: 39 Years Young Today!

March 27, 2018June 8, 2019 Mark Elliot Chapter 5, Charles Aronberg

Thirty-nine years ago today, on March 27, 1979, the City of Beverly Hills enacted a “temporary system of stabilization and control of apartment rent levels.” The introduction of Chapter 5 Rent Stabilization that year was an effort to draw a line under excessive rent increases and turnover in rental housing. Then and now the cost of rental housing was moving beyond reach of residents and threatening the stability of households that rent. Chapter 5 delivered for tenants.

Explainer

My Landlord is Asking for an Estoppel. Need I Sign It?

July 16, 2024July 29, 2024 Mark Elliot

An estoppel certificate is a legal document that simply establishes the terms and status of a rental agreement (or lease) for a third party like a prospective buyer. Typically a tenant is asked to complete an estoppel when purchase negotiations advance and that request may come from the current owner or an agent working on behalf of a prospective buyer. It is nothing to fear; it is a standard step in the sale of real property. In any case the lease or rental agreement may require the tenant to complete it. When presented with an estoppel to complete and sign you may have questions. Here is what you need to know.

Explainer