Chapter 17.32

LIMITS ON RENTS, SECURITY DEPOSITS AND FEES

Editor's Note: The title of this chapter was amended by § 75 of Ord. 99-548. The chapter was previously titled "Maximum Allowable Rents."

No landlord shall demand, accept or retain rent for a rental unit exceeding the maximum allowable rent for that unit or impose a rent increase for any rental unit except as hereinafter provided in this title.

For tenancies commencing prior to January 1, 1996:

1. From the effective date of the ordinance codified in this title to September 1, 1985, the maximum allowable rent shall be that rent permitted under Ordinance No. 5 of the City of West Hollywood.

2. Beginning September 1, 1985, the maximum allowable rent shall be the base rent as defined in Chapter 17.08 increased by any adjustments allowed through August 31, 1996 under this title and any subsequent lawful rent increases actually implemented pursuant to this title. The maximum allowable rent shall not include any general adjustments beginning with the September 1, 1996 general adjustment, unless the adjustment was lawfully implemented during the period when said adjustment was available.

3. For tenancies created on or after January 1, 1996, the maximum allowable rent shall be the initial rental rate established for the tenancy, based upon the monthly amount actually demanded, received or collected, plus any adjustments allowed under this title, subject to the following limitations:

   • (a) If the unit is eligible for an increase on vacancy pursuant to Chapter 17.40, the initial rental rate established shall not exceed the amounts authorized by that section; and

   • (b) If the unit is not eligible for an increase on vacancy pursuant to Chapter 17.40, the initial rental rate established shall not exceed the existing maximum allowable rent.

4. For a unit in which there is a government subsidy to the tenant through the Section 8 Housing Choice Voucher program, the maximum allowable rent shall not exceed the base rent as defined in Sections 17.08.010(13)(i) and (ii), less any decrease ordered pursuant to Section 17.44.040 or 17.56.010. Any decrease in maximum allowable rent ordered as the result of the landlord's failure to perform minimum required maintenance or substantial reduction of a housing service shall be only from that portion of rent paid to owner by the Section 8 tenant.

Any decrease in maximum allowable rent ordered as the result of the landlord's failure to perform minimum required maintenance or substantial reduction of a housing service shall be only from that portion of rent paid to owner by the Section 8 tenant. [Editor's Note: This subsection added by Ord. 03-650U; effective May 1, 2003.]

(Prior code § 6408(a); Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 1, § 7, 1985; Ord. 85-79U § 1, § 7, 1985; Ord. 85-84U § 2, 1985; Ord. 87-135 § 7, 1987; Ord. 87-135U § 7,

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City of West Hollywood, CA § 17.32.010

WEST HOLLYWOOD CODE

§ 17.32.020

1987; Ord. 90-267 § 1, 1990; Ord. 90-267U § 1, 1990; Ord. 91-372 §§ 1, 2, 1991; Ord. 93-381 § 1, 1993; Ord. 95-430 § 1, 1995; Ord. 95-430U § 1, 1995; Ord. 95-449U §§ 6, 7, 1995; Ord. 99-548 § 8, 1999; Ord. 03-650U § 7, 2003; Ord. 14-942U § 3, 2014)

1. Landlords may demand, accept or retain the amount of security allowed in Civil Code Section 1950.5 upon the commencement of a new tenancy. The initial amount received, including, but not limited to, any amount designated as last month's rent, shall not be increased for any tenant during the term of tenancy except as provided by subsection (2) of this section. Any amount designated as last month's rent shall apply toward the rent for the last month of tenancy. In no event may the total security deposit collected exceed the maximum set by state law.

2. Additional Pet Deposit.

   • (a) For tenancies commencing before March 24, 2022, a landlord may collect an additional security deposit of up to one months' rent with the written consent of the tenant(s) who are providing a deposit where the landlord agrees in return for said deposit to permit the tenant(s) to have pets which were not permitted previously during the tenancy. However, in no event may the total security deposit collected exceed the maximum set by state law.

   • (b) For tenancies commencing on or after March 24, 2022, a landlord may not collect an additional security deposit at any time during the tenancy to permit the tenant(s) to have a pet(s) allowed by this chapter even if not permitted previously during the tenancy. The tenant(s) may have a pet pursuant to this paragraph only if it does not interfere with the quiet enjoyment of the premises by other persons or otherwise constitute a nuisance or a threat to the health, safety or welfare of other persons residing in or having lawful access to the premises.

3. Interest on security deposits retained by landlords through December 31, 1993 shall become due and payable at the rate of five and one half percent per annum on or before February 28, 1994. Such payment may be in the form of a direct payment or a credit against rent for January or February, 1994.

4. Beginning with the calendar year 1994, interest on security deposits retained by landlords shall accrue at rates to be determined annually by the Rent Stabilization Commission in accordance with the formulas set forth in the Rent Stabilization Regulations. [5] The applicable rates of interest for each year shall be announced by the Commission on or before September 1st of the same year. On or before January 31st of the following year, the landlord shall make a payment to the tenant or allow a rent credit for interest on the amount held as security deposit for the previous year ending December 31st. Such payment or rent credits shall continue to be made annually until such time as the security deposit is returned to the tenant or entitled to be used by the landlord. Any interest accrued to the benefit of a tenant who vacates a rental unit shall be paid to the tenant upon departure from the premises.

5. Except as provided in subsection (2)(a) above, a security deposit, once established cannot

5. Editor's Note: The "Rent Stabilization Regulations" are published separately. A copy may be reviewed and/or obtained by contacting the Department of Rent Stabilization.

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City of West Hollywood, CA

RENT STABILIZATION

§ 17.32.020

§ 17.32.050

be raised for the duration of the tenancy. For purposes of this subsection, where several tenants occupy one unit, the tenancy shall be deemed to continue so long as any one of the tenants who occupied the unit when the security deposit was set continues to occupy the unit. The annual general adjustment pursuant to Chapter 17.36 does not apply to a security deposit.

(Prior code § 6408(b); Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 1, § 7, 1985; Ord. 85-79U § 1, § 7, 1985; Ord. 85-84U § 2, 1985; Ord. 87-135 § 7, 1987; Ord. 87-135U § 7, 1987; Ord. 90-267 § 1, 1990; Ord. 90-267U § 1, 1990; Ord. 91-372 §§ 1, 2, 1991; Ord. 93-381 § 1, 1993; Ord. 95-430 § 1, 1995; Ord. 95-430U § 1, 1995; Ord. 95-449U §§ 6, 7, 1995; Ord. 99-548 § 25, 1999; Ord. 22-1177 §§ 3 – 5, 2022)

1. Application Fees. After September 1, 1985, and continuing through, and including December 31, 1996, no person or entity shall request or demand an application fee from a prospective tenant as a prerequisite to applying for or renting a rental unit. Effective January 1, 1997, a landlord may charge an "applicant," as defined in Civil Code Section 1950.6, an application screening fee in an amount, and upon the conditions, set forth in that code section.

In charging the application screening fee, the landlord shall comply with all requirements and procedures set forth in Civil Code Section 1950.6.

2. Replacement Fees. No landlord shall charge a tenant a replacement fee for a key or security card which exceeds the actual replacement cost without the prior approval of the Commission.

3. Bounced Check Fees. No landlord shall charge a tenant a fee for a bounced check which exceeds the fee charged by the bank for the return of the check.

4. Late Payment Fees. Fees for late payment of rent shall under no circumstance exceed a total of one percent of the monthly rent for each payment of rent which is five or more days overdue.

(Prior code § 6408(c); Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 1, § 7, 1985; Ord. 85-79U § 1, § 7, 1985; Ord. 85-84U § 2, 1985; Ord. 87-135 § 7, 1987; Ord. 87-135U § 7, 1987; Ord. 90-267 § 1, 1990; Ord. 90-267U § 1, 1990; Ord. 91-372 §§ 1, 2, 1991; Ord. 93-381 § 1, 1993; Ord. 95-430 § 1, 1995; Ord. 95-430U § 1, 1995; Ord. 95-449U §§ 6, 7, 1995; Ord. 97-484 § 1, 1997)

Notwithstanding any provision to the contrary in any lease or written agreement, a landlord shall not charge any rent above the rent allowed in Section 17.32.010 if a new tenant is added either with the consent or agreement of the landlord or pursuant to the provisions of Section 17.52.010(2).

(Prior code § 6408(d); Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 1, § 7, 1985; Ord. 85-79U § 1, § 7, 1985; Ord. 85-84U § 2, 1985; Ord. 87-135 § 7, 1987; Ord. 87-135U § 7, 1987; Ord. 90-267 § 1, 1990; Ord. 90-267U § 1, 1990; Ord. 91-372 §§ 1, 2, 1991; Ord. 93-381 § 1, 1993; Ord. 95-430 § 1, 1995; Ord. 95-430U § 1, 1995; Ord. 95-449U §§ 6, 7, 1995)

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City of West Hollywood, CA § 17.32.050

WEST HOLLYWOOD CODE

§ 17.32.060

During the period of August 6, 1993 through December 31, 1995, no existing tenant(s), regardless of the amount of the maximum allowable rent permitted by Section 17.32.010(1) for the unit in which they reside, shall be subject to an increase in the actual amount of monthly rent charged in excess of ten percent in any twelve-month period. No landlord shall demand, accept or retain rent for a rental unit which represents an increase in actual rent charged in excess of this limitation. In calculating this percentage limitation on increases, any annual general adjustment to which the landlord is entitled pursuant to Chapter 17.36 shall be included. This limitation on rent increases shall not apply to any rent increases approved by a hearing examiner or the Rent Stabilization Commission pursuant to Chapter 17.44.

Any increase in rent which became effective on or after January 1, 1993, may not continue to be collected beyond the date of August 6, 1993 to the extent it exceeds the limitation set forth in this subsection. Nothing in this chapter shall require that rent increases collected prior to August 6, 1993 be rebated to the tenant.

(Prior code § 6408(e); Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 1, § 7, 1985; Ord. 85-79U § 1, § 7, 1985; Ord. 85-84U § 2, 1985; Ord. 87-135 § 7, 1987; Ord. 87-135U § 7, 1987; Ord. 90-267 § 1, 1990; Ord. 90-267U § 1, 1990; Ord. 91-372 §§ 1, 2, 1991; Ord. 93-381 § 1, 1993; Ord. 95-430 § 1, 1995; Ord. 95-430U § 1, 1995; Ord. 95-449U §§ 6, 7, 1995)

Beginning January 1, 1996, notwithstanding any other provision of this title, and regardless of the amount of the maximum allowable rent permitted by Section 17.32.010(1), no landlord shall increase the actual rent demanded, accepted or retained for an existing tenancy created prior to January 1, 1996, except in accordance with the following limitations:

1. Any increase in the actual rent demanded, accepted or retained shall not result in a rental rate which is more than ten percent greater than any rental rate in effect for that tenancy at any time during the preceding twelve-month period. In calculating this percentage limitation on increases in actual rent, any annual general adjustment to which the landlord is entitled pursuant to Chapter 17.36 shall be included. Such limitation, however, shall not apply to any rent increases approved by a final decision of either a hearing examiner or the Rent Stabilization Commission pursuant to Chapter 17.44.

2. No increase in the actual rent demanded, accepted or retained, other than the percentage annual general adjustment, may be imposed unless each of the following conditions are satisfied:

   • (a) The rental unit is in compliance with all applicable fire, building, housing and health codes and applicable housing maintenance standards;

   • (b) All appliances provided to the unit by the landlord are in good working order;

   • (c) The rental unit is provided with all of the housing services and amenities applicable to the particular unit;

   • (d) The landlord is in substantial compliance with all other provisions of this title; and

   • (e) The landlord has complied with the requirements of state law and the terms of any

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City of West Hollywood, CA

RENT STABILIZATION

§ 17.32.060

§ 17.32.090

rental agreement regarding notice of a change in the terms of the tenancy. (Prior code § 6408(f); Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 1, § 7, 1985; Ord. 85-79U § 1, § 7, 1985; Ord. 85-84U § 2, 1985; Ord. 87-135 § 7, 1987; Ord. 87-135U § 7, 1987; Ord. 90-267 § 1, 1990; Ord. 90-267U § 1, 1990; Ord. 91-372 §§ 1, 2, 1991; Ord. 93-381 § 1,1993; Ord. 95-430 § 1, 1995; Ord. 95-430U § 1, 1995; Ord. 95-449U §§ 6, 7, 1995)

The provisions of this chapter may not be waived by any oral or written agreement. Any such agreement or other action purporting to waive any rights established in this chapter is contrary to public policy and void.

(Prior code § 6408(g); Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 1, § 7, 1985; Ord. 85-79U § 1, § 7, 1985; Ord. 85-84U § 2, 1985; Ord. 87-135 § 7, 1987; Ord. 87-135U § 7, 1987; Ord. 90-267 § 1, 1990; Ord. 90-267U § 1, 1990; Ord. 91-372 §§ 1, 2, 1991; Ord. 93-381 § 1, 1993; Ord. 95-430 § 1, 1995; Ord. 95-430U § 1, 1995; Ord. 95-449U §§ 6, 7, 1995)

Landlords shall accept rent payments from tenants in whole or in part in the form of third party checks from social service agencies under contract with the city. (Ord. 14-942U § 4, 2014)

• (a) For purposes of this section, "side agreement" shall mean an agreement that is not part of the underlying or primary oral or written lease agreement that establishes the base rent.

• (b) No side agreement charging a fee or rent for the provision of any housing service in the rental unit or common area that is connected with the use and occupancy of the rental unit shall be permitted.

• (c) On or after March 24, 2022, no side agreement charging a fee or rent for the provision of an on-site, off-street parking space shall be permitted.

• (d) The landlord shall provide each prospective tenant with a written disclosure that shall comply with the following:

  • (1) The disclosure shall be in English, Spanish, and Russian, be in at least 12-point type, and state: "An agreement charging additional fees or rent for provision of any housing service in the rental unit or common area that is connected with the use and occupancy of the rental unit, including parking, is prohibited under West Hollywood Municipal Code Section 17.32.090. The landlord and tenant may, however, negotiate to exclude certain housing services, including parking, from the tenancy, and the initial rent may be adjusted accordingly based on the parties' agreement. If at any time during the tenancy, the landlord and tenant wish to add or remove a housing service which can be readily added to or removed from the unit and which has an ascertainable market value in the community, they may negotiate and agree to adjust, upon city approval, the maximum allowable rent (MAR) to reflect the added or removed housing service. Parties seeking to adjust the MAR should contact the city's Rent Stabilization Division."

  • (2) The disclosure shall include the phone number for the Rent Stabilization Division.

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City of West Hollywood, CA § 17.32.090

WEST HOLLYWOOD CODE

§ 17.32.100

• (3) The disclosure may be provided either as a separate document or within the body of a written lease. If provided as a separate document, it shall be signed by the tenant. If the disclosure is included within the body of a written lease, the landlord shall require the tenant to initial the disclosure before they sign the lease.

• (4) The landlord shall provide the disclosure required by this subsection to a prospective tenant before the prospective tenant enters into a rental agreement with the landlord. The disclosure, including the required translations, shall be provided by the Department, and shall be given to landlords upon request.

• (5) A landlord's failure to comply with the provisions of this subsection is subject to the administrative penalty provisions set forth in Sections 1.08.030 through 1.08.070 of this code.

• (Ord. 22-1177 § 10, 2022)

No landlord may impose a separate fee or charge for any utility service which is billed directly to the landlord by the utility provider. This prohibition includes, but is not limited to, the use of ratio utility billing systems (RUBS) or landlord installed meters that do not establish a separate, tenant account with the utility provider.

(Ord. 22-1177 § 11, 2022)

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City of West Hollywood, CA

RENT STABILIZATION

§ 17.36.010

§ 17.36.040

CHAPTER 17.36 ANNUAL GENERAL RENT INCREASES

Editor's Note: The title of this chapter was amended by § 44 of Ord. 99-548. The chapter was previously titled "Annual General (Across-the Board) Rent Increases."