South Bay governments implement rent control after double-digit rate increases

After landlords began raising rates, three South Bay gateway cities passed rent control laws. According to the Los Angeles Times, the City of Maywood adopted a rent control ordinance after neighboring Bell Gardens and Cudahy.

After landlords began raising rates, three South Bay gateway cities passed rent control laws. (Photo: The Real Deal)

Policymakers: Congested cities cannot rely solely on housing development

When a short-term rent freeze expires next month, Maywood’s rent control, which will cap rent increases at 4 percent, will take effect. While Cudahy’s rent cap is 3 percent, Bell Gardens’ is the same.

Latino and immigrant employees in the food industry, retail, and other service industries predominate in the three tiny cities along the Los Angeles River.

According to the Times, some landlords increased rents in the formerly inexpensive districts by more than the state’s 5 percent maximum. One owner hiked a one-bedroom apartment’s rent from $840 per month to $1,650 by the spring of the following year, reports The Real Deal.

City leaders declared it was time to take action due to double-digit rent increases and the fact that renters make up more than 73 percent of Maywood, 79 percent of Bell Gardens, and 86 percent of Cudahy. According to policymakers, the congested cities cannot rely solely on housing development to maintain home affordability.

According to proponents of rent control, local governments are permitted to institute rent control on structures built before 1995 under the state’s Costa-Hawkins Rental Housing Act.

READ ALSO: More Cities Are Resisting Exorbitant Annual Rent Increase By Pushing Rent Control

Increased rent control will reduce affordability

However, opponents assert that builders are reluctant to construct in regions where rent control is legally mandated. Therefore, increased rent control will reduce affordability by discouraging the construction of new dwellings and forcing landlords to remove their properties from the rental market.

Mom-and-pop landlords can’t keep up with the escalating expenses of water, garbage, and insurance, according to Daniel Yukelson of the Apartment Association of Greater Los Angeles, unless they raise rates. According to him, corporate landlords who remodel the apartments and rent them out at greater prices would replace small landlords who will be driven out of the market by rent regulation.

According to a paper on the corporatization of housing written by UCLA graduate student Alexander Ferrer for the NGO Strategic Actions for a Just Economy, corporate landlords are more profit-driven, impose higher rents, and remove tenants more quickly.

In November, Pasadena voters approved a rent control bill that withstood a legal challenge by the California Apartment Association. In November 2024, California voters will be given the option to approve a proposal that will further restrict the state’s rent control, reports The Los Angeles Times. 

READ ALSO: Pennsylvania Expands Property Tax And Rent Rebate Program: See If You’re Eligible!