Chapter 6 Tenants
The maximum allowable increase effective on 6/12/2019 is 3.1% (BHMC § 4-6-3B).
Chapter 6 tenants are those whose most recent lease stipulates a move-in base rent more than $600*. See Chapter 6 FAQ (rev January 2019).
Chapter 6 tenants maximum allowable rent increases may not exceed the greater of: 1) three percent (3%) of the rental rate then in effect, or 2) the percentage equal to the percentage increase, if any, of the Consumer Price Index (CPI) for the Los Angeles/Riverside/Orange County Area, as published by the United States Department of Labor, Bureau of Labor Statistics between May 1 of the then current year and May 1 of the immediately preceding year.
Only one increase shall be permissible within any twelve (12) month period; provided, further, that a twelve (12) month period shall have elapsed since the last increase.
Chapter 5 Tenants
The current maximum allowable increase is 3.12% (BHMC § 4-5-303).
Chapter 5 tenants are those whose most recent lease stipulates a move-in base rent of $600 or less.* See Chapter 5 FAQ (rev June 2018).
The maximum allowable rent for Chapter 5 tenants is the lesser of eight percent (8%) or the increase of the CPI as of the date of the notice of increase.
Chapter 5 CPI is defined as the Urban All Items CPI for Los Angeles (or any successor equivalent), as published by the United States Department of Labor, Bureau of Labor Statistics. The method to compute the increase in the CPI is as follows: The latest published CPI figure shall be added along with such figures for the preceding eleven (11) individual months, and, from the sum reached, there shall be deducted the sum of such figures for the twelve (12) months further preceding the last such twelve (12) months. That remainder shall then be divided by the lower of the two (2) sums heretofore mentioned, and the resulting figure shall indicate the permissible maximum percentage by which the base rent may be increased by virtue of the rise in the CPI. The City, on a monthly basis, will post the maximum allowable rent increase for Ch. 5 tenants.
Any security deposit lawfully imposed by the landlord on a tenant may be increased by the same percentage as the base rent may be increased, in accordance with the provisions of this section, at such time as the base rent is recomputed.
Notice For Rental Increase
Prior to increasing the rent, the landlord must provide written notice to the tenant. The notice must be delivered to the tenant at least 30-days prior to the rent increase, if personally served to the tenant, or 35 days if the notice is sent by First Class Mail [B.H.M.C. § 4-6-3 and California Civil Code Section 827(b)(1)(B)(2),(3)].
Rent Adjustment Application
Should a housing provider believe he/she cannot receive a fair and just return from his or her property with the annual permitted increase, he/she may apply for a rent adjustment (B.H.M.C. §§ 4-5-401 and 4-6-11). Please contact staff for more information.
Rent levels for new tenancies.
When a unit is voluntarily vacated, the housing provider may rent the unit for whatever amount the incoming tenant agrees to (market rent).
Housing providers may recover possession of the property for the following reasons:
If tenants are evicted reasons for reasons A, B, C, D, F, or G above, the unit may be rented at market rate.
*Chapter 5 or Chapter 6 tenant status is based on the initial rental amount stated in the most recent, valid lease or rental agreement. This is not to be confused with the current rent amount, which may reflect increases over time. For example, a Chapter 5 tenant's current rent may be $1000 per month due to increases over time. The tenant remains a Chapter 5 tenant if the original rent was $600 or less per month.