Frequently Asked Questions (FAQ)
|What is the City of Cudahy Rent Stabilization Ordinance and when was it adopted?
|On June 6, 2023, the City adopted Ordinance No. 736, adding Chapter 5.13 Rent Stabilization to the Cudahy Municipal Code (CMC). The Chapter, known as the “Rent Stabilization Ordinance” is intended to set the maximum annual rent increases than those set forth in the State law.
|What is the City of Cudahy Tenant Protections Ordinance and when was it adopted?
|On June 6, 2023, the City adopted Ordinance No. 737, adding Chapter 5.14 Just Cause Tenant Protections to the Cudahy Municipal Code. The Chapter, known as the “Tenant Protections Ordinance” is intended to regulate justifiable grounds for eviction and to expand tenant protections from those provided by the State.
|What properties are exempt from the Rent Stabilization Ordinance?
Yes. The following properties are exempt from the Rent Stabilization provisions of the Ordinance. Refer to Section 5.13.040 for the specific requirements for each exemption.
|How much can rent be increased each year?
|By April 30th of each year, the City will determine the maximum allowable rent increase that will be effective as of July 1st of that year. The City calculates the maximum allowable rent increase to be the lesser of 3%, or change in the Consumer Price Index (CPI)(inflation).
As of August 1, 2023, the City's maximum allowable rent increase is 3%.
|Is notice required before increasing rent?
|Yes. A landlord must provide a tenant with at least thirty (30) days written notice before imposing a rent increase and in compliance with State law.
|When can owners or landlords raise tenants’ rent?
|Owners or landlords may raise tenants’ rent once every 12 months, but not more than the City's annual rent increase limitation (unless the owner’s Fair Return Petition is approved by the City). The allowable rent increase will be announced no later than April 30th each year and shall be effective as of July 1st of that year.
|Can a property owner “bank” unused rent increases?
|No. Unused portions of the annual limit in any year may not be added to rent increases in future years.
|Are there any provisions that allow landlords to increase the rent more than the annual allowable increase?
Yes. Owners can file a Fair Return Petition to the City to seek an individualized rent increase adjustment if they contend that the rent increase cap will prevent them from receiving a “fair and reasonable return” on their property.
Also, a landlord may also submit a Capital Improvement Petition requesting a pass-through cost to the tenants to cover certain expenses incurred by the landlord to complete capital improvements for the rental unit.
** NOTE: The City is currently in the process of developing these petitions.
|What is a fair return petition?
|A landlord may petition for a rent increase above the annual limit if they can demonstrate that they are not receiving a fair return on the property based on Department guidelines. There is a rebuttable presumption that net operating income (NOI) earned in the base year plus permitted annual increases provide a fair return.
|Can an owner increase the rent to market rate or higher following a vacancy?
|Yes. An owner may set the initial rent for new tenancies after a unit has been vacated.
|Do landlords have to register their rental unit(s) with the City?
Yes. All rental units, including exempt rentals, will be required to be registered on or before July 1, 2024, and by July 1 of each subsequent year. After initial registration, landlords must update the registration following changes in tenancy or ownership.
**NOTE: The City is currently in the process of developing the Rental Unit Registry.
|Are landlords required to pay a fee for rental units registered with the City?
|Yes. Landlords are required to pay an annual fee for each unit registered with the City. The fee will be set by City Council. Landlords can pass-through half of the fee to tenants. The fee will be waived if the property is owner-occupied and has four (4) or fewer rental units.
|Do all rent increases need to be approved by the City?
|No. Annual allowable increases and rents set for new tenancies for vacant units do not require City approval.
|If I sell my property, do the new owners have to maintain the same rent?
|Yes. The new owners are subject to the existing lease/rental agreement but may enter into a new agreement provided it is substantially similar.
|Can a landlord increase the security deposit?
|No. A landlord may demand or receive a security deposit, however denominated, in an amount or value more than the security deposit charged or received at the start of the tenancy.
|Does an owner need to notify the tenant(s) about a rent increase?
Yes. The owner must provide a tenant with at least thirty (30) days written notice before imposing a rent increase.
The amount of time required to notify the tenant is outlined in California Civil Code 827.
|How does an owner notify the tenant of the termination of a tenancy?
When terminating a tenancy, whether under the at-fault or no-fault provisions, an owner must comply with all of the following, in addition to any information required by federal or State law: