Rent Stabilization

What is Rent Stabilization in Cudahy?

The City Council enacted the Rent Stabilization Ordinance to maintain affordable rental housing in Cudahy by setting the maximum rent increase than those set forth in State law. 

What is the definition of "Rent?" The sum of periodic payments and all nonmonetary consideration demanded or received by a landlord from a tenant for the use or occupancy of a rental unit, including tenant's access to and use of Housing Services. Housing services includes services provided by the landlord including water, heat, utilities, parking and storage. Rent does NOT include any of the following: security deposits, utility charges billed separately to the tenant by the utility company, and pass-through fees and charges.

HIGHLIGHTS

Permitted Rent Increases 


CMC Section 5.13.050

The maximum allowable rent increase for the period August 1, 2023 through June 31, 2024, is 3 percent (%).

  • Limits annual rent increases for “covered rental units” by no more than the change of Consumer Price Index (CPI/Inflation), or 3%, whichever is lower.
  • Limits the frequency of increases to no more than one increase in any 12-month period and requires 30 days written notice.
  • The landlord may not “bank” unused portions of the maximum allowable increase to be imposed in future years.
  • The landlord may set the initial rent for new tenancies pursuant to State law.

Covered Units/Exemptions 


CMC Section 5.13.040
  • Applies to residential units within the city, unless expressly exempt per State or federal.
  • Specific exemptions include:
    • Units built after February 1, 1995,
    • Single-family homes, condominium, townhomes – title separately alienable,
    • Affordable housing, care facilities, short-term accommodations (hotels, motels, etc.). 
    • Properties with up to 2 units that are owner-occupied (owner lives in one of the units).
  • Does not apply to commercial properties.
  • Mostly applies to apartments and multi-family properties.

Landlord Fair Return Petition


CMC Section 5.13.070 

The ordinance establishes a process for a landlord to request a fair return rent adjustment. 

  • The landlord has a right to a fair and reasonable return.
  • The landlord bears the burden of proof. 
  • The max increase that may be approved by the Department cannot exceed 10%.
  • The landlord must provide written notice to tenants prior to charging an approved increase.

Factors to be considered by the Department: 

  • Changes in CPI, rent increase history, property taxes,
  • Physical condition of property, capital improvements, repairs, and maintenance,
  • Increases and decreases of housing services,
  • Rental agreement, and
  • Landlord’s compliance with the ordinance. 

Tenant Petition for Adjustment


CMC Section 5.13.080 

The ordinance establishes a process for a tenant to submit a petition an adjustment to their monthly rental payment obligations due to anyone (1) or more of the following grounds:

  1. Unlawful Rent and/or Fees or Charges,
  2. Failure to Maintain Habitable Premises, or
  3. Decrease in Housing Services.

Security Deposit


CMC Section 5.13.090
  • The security deposit amount is set at the start of the tenancy and may not be increased.
  • Security deposit means any “security” as defined in CA Civil Code Section 1950.5

Rental Unit Registry 


CMC Section 5.13.100 		Requires landlords to register rental.

Notices to Tenants


CMC Section 5.13.110

Property owners are required to provide written notice of the ordinance and tenants’ rights at:

  • Commencement of a lease, 
  • Renewal of lease, or 
  • As part of any notice to increase or decrease rent of covered rental unit. 

The notice shall be written in the language that the Owner and Tenant used to negotiate the terms of the Tenancy (e.g., Spanish, Chinese, Tagalog, Vietnamese and Korean), as well as English and in a form prescribed by the City.