2.25% Cap on Annual Rent Increases for Increases Effective 10/30/20 - 12/31/20
City of Culver City sent this bulletin at 10/14/2020 06:43 PM PDT
2.25% Cap on Annual Residential Rent Increases for Increases Effective
October 30 - December 31, 2020
Permanent rent control and tenant protections go into effect in Culver City on October 30, 2020. Under the new Rent Control Ordinance, the City caps annual rent increases at an amount tied to the Consumer Price Index (CPI). The maximum allowable increase on rents that take effect during any given month are released monthly, approximately six weeks in advance of the first of each month. The maximum permissible annual rent increase is 2.25% for residential rent increases effective between October 30, 2020 and December 31, 2020.
When will the rent cap for increases effective during future periods be announced?
Each month, on the next business day after the Bureau of Labor Statistics (BLS) publishes the CPI, the Housing Division will publish on its Rent Control/Tenant Protections webpage the maximum permissible rent increase for rent increases that are effective in the month that is approximately six weeks after the published increase. For example, on November 13, 2020, the City will publish the rent cap for increases effective January 1 - 31, 2021, and on December 11, 2020, the City will publish the rent cap for increases effective February 1 - 28, 2021.
The Bureau of Labor Statistics (BLS) publishes a schedule in advance of the CPI publishing dates for the upcoming year. The City will publish on its webpage additional rent cap release dates once the Bureau of Labor Statistics releases the CPI publishing schedule for 2021.
Landlords may not impose more than one Rent increase for a Covered Rental Unit in any twelve-month (12-month) period.
The maximum permissible annual rent increase is based on the average annual change in the consumer price index (“CPI change”).
If CPI change is less than 2%, maximum allowable annual rent increase is 2%.
If CPI change is more than 5%, maximum allowable annual rent increase is 5%.
A Landlord may impose a Rent increase that takes effect sooner than twelve (12) months following the date of the latest permitted Rent increase under the Interim Rent Control Ordinance, but the prior increase under Interim Rent Control Ordinance in combination with a rent increase under permanent ordinance may not exceed the maximum allowable annual rent increase under the permanent ordinance.
