SEC. 151.06. AUTOMATIC ADJUSTMENTS.

(Title Amended by Ord. No. 153,552, Eff. 5/1/80; Section Amended by Ord. No. 154,237, Eff. 8/30/80, Oper. 9/1/80.)

The maximum rent or maximum adjusted rent for a rental unit may be increased without permission of the Rent Adjustment Commission or the Department, as follows:

A. For a rental unit which has not had a rent increase since May 31, 1976 (other than one imposed pursuant to Section 3B(5) or (6) of Ordinance No. 151,415, as amended and/or Section 151.07 of this chapter:

Prior to any increase pursuant to Subsection D. of the section, a landlord may increase the maximum rent by an amount not to exceed 19%, but if the landlord pays all the costs of electricity and/or gas services for a rental unit, then the maximum or maximum adjusted rent may be increased an additional 1% for each such service paid by the landlord. Thereafter, the rent may be adjusted automatically only in accordance with Subsections C. and D.

B. For a rental unit which has not had a rent increase since May 31, 1977 (other than one imposed pursuant to Section 3B(5) or (6) of Ordinance No. 151,415, as amended, and/or Section 151.07 of this chapter) but which did have a rent increase within one year prior to that date:

Prior to an increase pursuant to Subsection D. of this section, a landlord may increase the maximum rent by an amount not to exceed 13%, but if the landlord pays all the costs of electricity and/or gas services for a rental unit, then the maximum or maximum adjusted rent may be increased an additional 1% for each such service paid by the landlord. Thereafter, the rent may be adjusted automatically only in accordance with Subsections C. and D. below.

C. (Amended by Ord. No. 181,744, Eff. 7/15/11.) Where all of the tenants have vacated a rental unit subject to the provisions of this Article, the following provisions apply:

1. The landlord may increase the maximum rent or maximum adjusted rent to any amount upon re-rental of the unit in any of the following circumstances:

(a) the rental unit was vacated voluntarily.

(b) the rental unit was vacated as a result of the landlord’s termination of tenancy pursuant to Subdivisions 1., 2., 9. or 13. of Subsection A. of 151.09 of this Code.

(c) the rental unit was vacated as a result of the landlord’s termination of tenancy pursuant to Subdivisions 3. or 4. of Subsection A. of Section 151.09 of this Code, and

i. The landlord served a written notice required to terminate tenancy on the tenant prior to the City Attorney commencing a court action against the tenant pursuant to Section 47.50 of this Code; and

ii. The eviction or termination of tenancy is based upon information provided by a law enforcement or prosecution agency that the tenant is committing or permitting to exist any gang-related crime, violent crime, unlawful weapon or ammunition crime, threat of violent crime, illegal drug activity or drug-related nuisance as those terms are defined in Section 47.50 of this Code. Thereafter, so long as the rental unit continues to be rented to one or more of the same persons, no other rent increase shall be imposed pursuant to this Subsection.

2. The landlord may only offer and rent the rental unit at the lawful rent in effect at the time of the most recent termination of tenancy plus annual adjustments available under Section 151.06 of this Article in any of the following circumstances:

(a) The rental unit is vacated as a result of the termination of the Housing Assistance Payment Contract between the landlord and the Housing Authority of the City of Los Angeles because of the landlord’s failure to comply with the contractual obligations required by law.

(b) The rental unit was vacated as a result of the landlord’s termination of tenancy pursuant to Subdivision 5., 6., 7., 8., 10., 11. or 12. of Subsection A. of Section 151.09 of this Code, or pursuant to Subdivisions 3. or 4. of Subsection A. of 151.09 of this Code except as otherwise provided under Subparagraph c. of Subdivision 1. of Subsection C. of this Section;

(c) The rental unit was vacated as a result of the landlord creating an unreason- able interference with the tenant’s comfort, safety or enjoyment of the rental unit;

(d) The rental unit is vacated voluntarily by a tenant who was the next tenant after an eviction pursuant to Subdivision 8. of Subsection A. of Section 151.09 of this Code;

(e) The rental unit is vacated as a result of the termination of the regulation of the rental unit under any local, state or federal program;

(f) The rental unit is the subject of a notice of noncompliance sent to the Franchise Tax Board pursuant to Section 17274 of the Revenue and Taxation Code, and the violations that were the subject of the notice have not been corrected;

(g) If the rental unit is the subject of a notice of acceptance into the Rent Escrow Account Program issued pursuant to Section 162.00, et seq., of this Code, until the unit is removed from the Rent Escrow Account Program and for one year thereafter, or until expiration of the period called for under Section 161.807, if applicable, whichever is later, the property owner/ landlord or any subsequent property owner/ landlord shall not increase the rent for any current or any subsequent tenant except as provided by the Costa Hawkins Rental Housing Act, Civil Code Section 1954.50, et seq., and/or any other applicable law. (Amended by Ord. No. 184,446, Eff. 9/28/16.)

n of the period called for under Section 161.807, if applicable, whichever is later, the property owner/ landlord or any subsequent property owner/ landlord shall not increase the rent for any current or any subsequent tenant except as provided by the Costa Hawkins Rental Housing Act, Civil Code Section 1954.50, et seq., and/or any other applicable law. (Amended by Ord. No. 184,446, Eff. 9/28/16.)

(h) The rental unit is the subject of a criminal conviction related to the landlord’s failure to comply with a citation or order issued by the Los Angeles Housing Department, Los Angeles Department of Building and Safety, Los Angeles Fire Department, or Department of Health with respect to the subject rental unit, and the conditions that caused the conviction have not been corrected. (Amended by Ord. No. 187,122, Eff. 8/8/21.)

3. If the rental unit is vacated as a result of a removal of the rental unit from rental housing use pursuant to Subdivision 10. of Subsection A. of 151.09 of this Code, the landlord must comply with the requirements of Sections 151.22 through 151.28 of this Code, including applicable limitations on the amount of rent.

D. For a rental unit which at any time on or after the operative date of this chapter has not had a rent increase for a period of 12 consecutive months or more (other than one lawfully imposed pursuant to Section 3.B.(5) or (6) of Ordinance No. 151,415, as amended), and/or pursuant to Subsection E. of this section and/or pursuant to Section 151.07 of this chapter: (Amended by Ord. No. 184,822, Eff. 4/30/17.)

The maximum rent or maximum adjusted rent may be increased in an amount based on the Consumer Price Index – All Urban Consumers averaged for the twelve (12) month period ending September 30, of each year, as determined and published by the Department on or before May 30, of each year, pursuant to 151.07 A.6. of this chapter. This annual adjustment may be applied to any annual rent increase which first becomes effective on or before July 1, through June 30, of each year. If the landlord pays all the costs of electricity and/or gas services for a rental unit then the maximum rent or maximum adjusted rent may be increased an additional one percent (1%) for each such service paid by the landlord, not to exceed a total of two percent (2%). If a rent increase had been imposed pursuant to Subsection A., B., C. or F.1., of this section, then no rent increase may be imposed pursuant to this subsection until twelve (12) consecutive months or more have elapsed since such rent increase. (Amended by Ord. No. 159,908, Eff. 6/30/85 Oper. 7/1/85.)

EXCEPTION: (Amended by Ord. No. 170,445, Eff. 5/6/95, Oper. 7/5/95.)

This subsection shall not apply in the following circumstances:

If the rental unit is the subject of a notice of noncompliance sent to the Franchise Tax Board pursuant to Section 17274 of the Revenue and Taxation Code, and the violations that were the subject of the Notice have not been corrected; or

If the rental unit is the subject of a notice of rent reduction or a Notice of Acceptance issued pursuant to this chapter, and the conditions that caused the placement have not been corrected; or

If the rental unit is the subject of a criminal conviction related to the landlord’s failure to comply with a citation or order issued by the Department of Building and Safety, Fire Department, or Department of Health with respect to the subject rental unit, and the conditions that caused the conviction have not been corrected.

E. (Amended by Ord. No. 154,808, Eff. 2/13/81.) For a rental unit which had an automatic rent adjustment between May 1, 1980 and August 31, 1980, inclusive, and for which the landlord pays all the costs of electricity and/or gas services for a rental unit:

The maximum rent or maximum adjusted rent may be increased 1% for each such service paid by the landlord. A landlord may not increase rent pursuant to this subsection on or after May 1, 1981.

F. (Added by Ord. No. 158,891, Eff. 6/4/84.) For a rental unit, which is the site within a mobilehome park (hereafter “site”) on which a mobilehome is located and is vacated by all the tenants after the operative date of this subsection;

1. Except as otherwise provided in this subsection, if the mobilehome on the site is vacated voluntarily or as a result of an eviction or termination of tenancy based on one or more of the grounds described in Section 151.09 A.1., A.2. or A.9., and the mobilehome is permanently removed from the site, then the maximum rent or maximum adjusted rent may be increased to any amount upon the re-rental of the site. Thereafter, as long as the site continues to be rented to one or more of the same persons, no other rent increase shall be imposed pursuant to this subdivision.

However, this subdivision shall not apply in the following circumstances:

a. If the mobilehome has been temporarily removed for repairs; or

b. If the mobilehome has been replaced with a new mobilehome that one or more of the same tenants will occupy.

2. If the site is voluntarily vacated by all the tenants as a result of a sale of the mobile- home, and the mobilehome is not removed from the site, then the maximum rent or maximum adjusted rent may be increased by an amount not to exceed the rent on any existing comparable site in the park, or ten percent (10%), whichever is the lower. A comparable site for the purposes of this subdivision shall be a site within the same park which has a mobilehome located on it which is substantially the same size (single, double or triple wide) as the mobilehome that was sold.

Thereafter, as long as the site continues to be rented to one or more of the same persons, no other rent increase shall be imposed pursuant to this subdivision. The rent may only be increased pursuant to this subdivision once in any twelve consecutive month period.

G. (Amended by Ord. No. 181,744, Eff. 7/15/11.) For a rental unit which has an additional tenant joining the occupants of the rental unit thereby resulting in an increase in the number of tenants existing at the inception of the tenancy:

(a) The landlord may increase the maximum rent or maximum adjusted rent by an amount not to exceed 10% for each additional tenant that joins the occupants of the rental unit, except as follows:

(i) This Subsection shall not apply if the landlord had actual or constructive knowledge of the additional tenant’s occupancy of the rental unit for more than 60 days and has failed to notify the tenant of the increase pursuant to this Subsection;

(ii) If the additional tenant joined the occupants of the rental unit prior to the effective date of this amendment and the landlord had actual or constructive knowledge of the additional tenant’s occupancy of the rental unit prior to the effective date of this amendment, the landlord shall not be able to increase the rent pursuant to this Subsection unless the landlord had notified the tenant of the increase within 60 days of the effective date of this amendment;

(iii) This Subsection shall not apply for the first minor dependent child (or first minor dependent children of a multiple birth) added to an existing tenancy.

(b) The rental unit shall not be eligible for a rent increase until the additional tenant has maintained residence in the rental unit for a minimum of thirty consecutive days.

(Added by Ord. No. 166,368, Eff. 12/6/90.)

A. Security deposit is defined in Section 1950.5 of the California Civil Code.

B. (Amended by Ord. No. 174,017, Eff. 7/16/01.) A landlord who is subject to the provisions of Section 1950.5 of the California Civil Code shall pay annually interest on all security deposits held for at least one year for their tenants as follows:

1. (Amended by Ord. No. 175,020, Eff. 2/1/03.) Beginning January 1, 2003, the landlord may determine the annual rate of interest by either of the following methods:

(a) Using the annual rate of interest established by the Rent Adjustment Commission (RAC). That rate shall be based on the average of the interest rates on savings accounts paid on September 1 of the previous year, by at least five Federal Deposit Insurance Corporation (FDIC) insured banks with branches in Los Angeles. RAC shall adopt the rate by November 30 of each year and shall publish that rate in a newspaper of general circulation within one week after it is established each year. The interest rate established by the RAC shall be the rate in effect from January 1 through December 31 of the subsequent year.

(b) Using the actual interest earned on each security deposit account each year. If the landlord chooses this method of determining the amount of interest due at the time of payment of the security deposit interest, the landlord shall provide the tenant with bank statements indicating the amount of interest earned on the security deposit for that year. In the event the landlord fails to provide that information to the tenant at the time it transmits payment of the interest to the tenant, the interest rate required to be paid, shall be the rate set by RAC.

(c) No interest shall accrue on security deposits for the period of January 1, 2002 through December 31, 2002.

2. The annual interest rate shall be 2% simple interest per annum for tenants’ security deposits held during the period of January 1, 2001, through December 31, 2001.

3. The annual interest rate shall be 5% simple interest per annum for tenants’ security deposits held during the period of November 1, 1990, through December 31, 2000.

4. The Los Angeles Housing Department (“LAHD”) shall identify the established interest rate in the annual rental unit registration billings mailed to landlords. LAHD shall publish the established interest rate in a newspaper of general circulation. (Amended by Ord. No. 187,122, Eff. 8/8/21.)

C. (Amended by Ord. No. 174,017, Eff. 7/16/01.) Interest shall begin accruing on November 1, 1990, on a monthly basis. A tenant shall be given the unpaid accrued interest in the form of either a direct payment or a credit against the tenant’s rent. The landlord shall choose between these two methods of payment and notify the tenant in writing of the landlord’s choice. The landlord may elect to pay the accrued interest on a monthly or yearly basis.

erest shall begin accruing on November 1, 1990, on a monthly basis. A tenant shall be given the unpaid accrued interest in the form of either a direct payment or a credit against the tenant’s rent. The landlord shall choose between these two methods of payment and notify the tenant in writing of the landlord’s choice. The landlord may elect to pay the accrued interest on a monthly or yearly basis.

D. Upon termination of tenancy, only the tenant whose security deposit has been held for one year or more shall be entitled to payment of any unpaid accumulated interest on the security deposit. Such payment shall be made at the same time and in the same manner as required for return of security deposits in California Civil Code Section 1950.5(f).

E. Upon termination of a landlord’s interest in a property, all accumulated interest on security deposits shall be disposed of in the same manner as required for security deposits by California Civil Code Sections 1950.5(g) and (h).

F. Nothing herein shall preclude a landlord from exercising their discretion in investing security deposits.

G. In the event the landlord fails to pay interest on the security deposit as provided in this section, the tenant may bring an action for recovery of the amount owed in a court of the appropriate jurisdiction including, but not limited to, small claims court.

H. The provisions of this section shall not govern mobile home parks.

(Added by Ord. No. 154,808, Eff. 2/1/81.)

A. For a rental unit in which the landlord installs smoke detectors pursuant to Section 91.8603.1.1 or Section 91.8603.1.2 or Section 91.8603.2.1 or Section 91.8603.2.2 of this Code: (Amended by Ord. No. 181,744, Eff. 7/15/11.)

The rent may be increased 50 cents ($.50) per month for each battery operated smoke detector installed in the rental unit, or three dollars ($3) per month for each permanently installed smoke detector in the rental unit, or the landlord may apply for a rent adjustment pursuant to Subsection A of Section 151.07 of this chapter. This surcharge shall not constitute a rent increase for purposes of Section 151.06 of this chapter.

B. This rent surcharge may be collected at the above rate until the actual cost to the landlord of purchase and installation has been recovered. This subsection shall not apply to a rental unit which becomes eligible for a rent increase pursuant to Section 151.06 C. of this chapter subsequent to the installation of the smoke detector. The Commission shall promulgate regulations on what constitutes eligible expenses in computing such actual cost.

C. Within two months after installation, or by May 31, 1981, whichever is later, the landlord must give written notice to the tenant paying the surcharge of the actual purchase and installation costs of the smoke detector and the month and year when said costs will have been completely amortized.

(Added by Ord. No. 166,707, Eff. 4/1/91.)

If a landlord is assessed financial penalties pursuant to the Emergency Water Conservation Plan of the City of Los Angeles, the landlord is entitled to partially pass through those penalties to tenants in the form of a temporary rent surcharge. This surcharge shall not constitute a rent increase for purposes of Section 151.06 of this chapter.

A. A landlord may partially pass through the financial penalties assessed by the Department of Water and Power under the Emergency Water Conservation Plan in the following amount and manner, and in accordance with the regulations adopted by the Rent Adjustment Commission.

1. The landlord shall be entitled to a rent increase in the form of a surcharge of fifty percent (50%) of the penalties assessed.

2. For mobilehome parks that are not separately submetered, the owner of the mobilehome park shall be entitled to pass through seventy-five percent (75%) of the assessed penalties. For mobilehome parks that are submetered, the owner of the park may apportion any assessed penalties in accordance with Rent Adjustment Commission regulations.

B. A landlord shall not close on-premises coin operated laundry facilities during the duration of the Emergency Water Conservation Plan.

(Repealed by Ord. No. 173,810, Eff. 4/16/01.)