Rent Stabilization

Rent Stabilization & Housing

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The Rent Stabilization and Housing Division administers the City's Housing Programs, including the Rent Stabilization Ordinance (RSO), Inclusionary Housing Program, and Affordable Housing Trust Fund to maintain and promote housing affordability and vibrant neighborhoods where all residents can thrive. We work to achieve this through the fair regulation and maintenance of existing rent stabilized housing, creation of new affordable housing opportunities, and supporting residents aging in place.

The report below provides a summary of housing market trends, ongoing City housing programs, and upcoming initiatives aimed at maintaining and expanding housing affordability in West Hollywood.

2016 Housing Report-1

 

 

View Report

Mobile Friendly Version

The City promotes housing affordability through the Rent Stabilization Ordinance (RSO), the Inclusionary Housing Program, and partnerships with non-profit affordable housing providers. These programs work to meet the community’s housing needs, limiting rent increases, requiring 20% of units in new residential development to be set aside as affordable, and through collaboration with non-profit housing providers and other government agencies creating affordable housing opportunities for those in greatest need. The City is also a strong advocate for state and federal funding for affordable housing and homelessness, and helps residents remain successful in their housing through connections with supportive services and through the aging in place plan.

Here are a few highlights from the report:

Rent Stabilization

    • Number of rent stabilization programs increased in California during 2015 and 2016. The Cities of Alameda, Mountain View, Richmond, and Santa Rosa adopted new ordinances. The cities of Berkeley, Beverly Hills, San Jose, Oakland, and East Palo Alto strengthened existing ordinances.
    • Rent Increases in West Hollywood:
      • 0.75% was the maximum increase allowed for in-place rent stabilized tenants Sept. 1, 2015 - Aug. 31, 2016 (this is also referred to as the Annual General Adjustment, or AGA). The AGA was 1.0% Sept. 1, 2016 - Aug. 31, 2017. The AGA is currently 1.75%. This is the maximum percentage a landlord may raise an in-place rent stabilized tenant's rent after the first 12 months of tenancy.
      • 1.9% was the average rent increase for non-rent stabilized tenants (also referred to as market-rate tenants) reported by CoStar.com. Non-rent stabilized tenants are renting apartments built on or after July 1, 1979, or began renting a single-family home or condominium in 1996 or after.
    • Pre-Costa-Hawkins tenants on average continued to enjoy affordable rent. Average rent for tenancies beginning prior to 1996 ranged from $848 for a studio, to $1,642 for a three bedroom unit.
    • Tenants who moved in 2016 most likely do not pay affordable rent. Average new rents for the same rent stabilized units following a vacancy ranged from $1,590 for a studio to $3,753 for a 3-bedroom unit.

    Inclusionary Housing

    • The inclusionary housing program produced 77 new affordable apartments at Movietown for extremely low, very low, and low income seniors.
    • 214 new units for moderate, and lower income households were produced from 2014 - 2016, primarily along commercial boulevards with almost no displacement of existing tenants. 
    • Not included in the 2016 report, but importantly, all moderate and lower income households facing Ellis Act displacement were offered affordable housing through the inclusionary program.

    Affordable Housing Fees

    • Most new residential development paid the City's Affordable Housing In-Lieu Fee. Fifty-four percent of new residential projects in 2016 were market-rate 2-10 unit condominiums paying the In-Lieu fee. These projects did not use the state housing bonus and did not provide onsite affordable units. In-lieu fees are held in the City’s Affordable Housing Trust Fund and used to provide loans to non-profit housing providers constructing new affordable buildings. (Currently, 75% of new multi-unit projects under review will pay the In-lieu fee, rather than provide affordable units)

    Partnerships with Non-Profit Housing Providers

    • The newest affordable housing building in West Hollywood is underway. In 2016, construction began on Blue Hibiscus, the latest housing project by the West Hollywood Community Housing Corporation (WHCHC). The City of West Hollywood provided $2 million from the City's Affordable Housing Trust Fund. The City’s loan was used by WHCHC to secure over $7.2 million in additional tax credit financing from the California Tax Credit Allocation Committee (CTCAC), making it possible to construct the project.

    Special Studies and Initiatives

    • Special studies and initiatives to promote housing affordability and tenant protections are underway:
    • Analysis of how to best utilize newly created county and state affordable housing funding sources, 
    • Study of achieving affordability through new or innovative financing strategies,
    • Review of the RSO cost-sharing calculation to encourage landlords to reinvest in aging rent stabilized buildings, 
    • Exploring a possible program providing tenants the first right to make an offer if their property owner plans to sell,
    • Guidelines for landlords who wish to “buy-out” in-place rent stabilized tenants.


    Quick Links


    News Letters & Workshops

     

     

    July 2017 Summer Newsletter
    Providing news and information on Rent Stabilization

    2017 RSO Workshops
    Sign up today. Workshops are free!

    Newsletter - Tenant_Page_1
    Tenants

    Landlords

    Building Blocks-2017-TenantSchedule - Tenant

    Building Blocks-2017-Landlord
    Schedule -Landlord


    Annual Reports

    The Rent Stabilization and Housing Division provides a report of activities annually. Use the following links to view the most recent report and prior reports.


    Resources


     

    Contact the Rent Stabilization and Housing Division 

    Be Involved

    Take our Housing Survey, and learn about current housing studies and programs. 


    Requests for Proposals

    There are no requests at this time.