By the rapid growth of the market and high prices, the City of Los Angeles has created a series of new property policies designed to protect the rights of renters while stimulating the growth of built housing.
Implementation of the Rent Control Act
This year, the City of Los Angeles officially implemented the Rent Control Ordinance (RCO) to protect the rights of renters and regulate rent increases. The Act calls for controlling rent levels by limiting annual rent increases and providing additional protections for renters. It also requires California renters to pay a one-month rental security deposit for their homes to protect the rights of landlords and renters.
In addition, the rent control bill would mandate a detailed contract between the owner of the rental property and the tenant. This contract would need to contain information such as the address of the residence, the term of the lease, the rent, the condition of the premises, etc. and would need to be signed by both parties and filed. If either party fails to comply with the terms of the contract, they will face penalties.
Diversified housing construction policy in place
To alleviate the housing shortage, the City of Los Angeles has also instituted a Diversified Housing Production Policy. This policy aims to increase the supply of housing to meet the needs of different income levels and to encourage developers and investors to invest more resources in the residential construction sector.
Under the new policy, the City of Los Angeles will provide more financial support for housing construction. The government will give priority to developers who can provide affordable low- and medium-priced homes and offer tax credits and other incentives. In addition, the government will support housing construction by streamlining the approval process and reducing development costs.
To incentivise landlords to rent out their homes, the government has also put in place incentives such as exemption from property tax for a certain period of time and access to the Rent Guarantee Scheme. The aim of these policies is to attract more landlords to join the housing rental market, thereby driving growth.
In recent years, due to the high prices and high demand for investment in the Los Angeles real estate market, the city has taken a number of effective measures to strengthen property regulation and protect the rights of renters. The implementation of the Rent Control Act and the introduction of the Housing Diversification Program have created a more positive outlook for the city's real estate market. In addition, the government will further introduce various incentives and concessions to encourage the construction of new housing and housing for rent to promote the healthy and stable development of the market.