Beverly Press has done a great job keeping Beverly Hills tenants informed about the labyrinthine rent stabilization policy process. For 20 months, we as a community have been talking. Now, City Council is ready to commit to some changes.

Some aspects will keep the current policy. Allowed rent increases will continue to be indexed to the change in consumer prices. The vast majority of tenants will see a ceiling on the allowed increase of 7.5 percent. And, the city will conduct some random housing inspections to identify substandard conditions.

It is good that council is building on the positive steps it has taken, like jettisoning the former annual cap of 10 percent and mandating relocation fees. Most significantly, council ended the no just cause termination allowance after three decades of unnecessary evictions.

Not so good is that a new, higher floor on the annual rent increase of 3.5 percent means landlords will still be able to raise the rent by that percentage annually, even when inflation falls and consumer prices level out. Tenants could be hit with a 3.5 percent increase every year (which compounds) even if inflation drops to zero, as it was a few years ago.

But then things get ugly. On the table now is a “trial year” for each new tenancy. That would allow a landlord to discontinue a tenancy upon expiration of the lease without paying any relocation fee. Five hundred or more new occupants each year will face this probationary provision if it is adopted.

Also on the table is a “luxury” exemption from the rent stabilization ordinance. That means no limit to the annual rent increase, and that’s not just for tenants renting the most expensive apartments. It will reach residents in every size tier. Even if a high threshold for “luxury” is applied (above a rent amount) this provision will take 340 units out of the RSO by my math.

Speaking of exemptions, we could see 99 families lose their RSO protections immediately if council proceeds to exempt owner-occupied duplexes. “The sky’s the limit” on their rent increase, our mayor noted. And, there are an additional 112 duplexes not currently owner-occupied (but could be). Were an owner to move in a family member to gain an exemption, for example, we could see as many as 112 additional families displaced and a corresponding number of families in those properties lose their cap on the annual rent increase.

Those families displaced for an owner’s relative would be entitled to only 10 percent of any relocation fee per year of their tenancy. Tenancies turn over relatively frequently here, so more than half of those displaced households would depart with less than the entire fee. One in 10 will get less than a third of their fee.

City Council will reconvene to finalize these changes (and more) at the Dec. 18 meeting. The mayor has said he wants to wrap it all up by year’s end, so there is no time to waste. Indeed, City Council blazed through 35 key policy decisions in just two hours at the last meeting and some discussions lasted fewer than three minutes. Every Beverly Hills tenant should understand what’s at stake.

Mark Elliot

Founder

Beverly Hills Renters Alliance