LA Rezoning Plan Threatens Rent-Controlled Apartments and Tenant Stability
A new plan in Los Angeles could displace tenants in rent-controlled apartments. The Citywide Housing Incentive Program ordinance will be reviewed by the City Council’s Planning and Land Use Management Committee. This ordinance aims to boost building incentives for developers but poses a risk to tenants in older rental units.
The proposed law offers developers benefits, such as higher building heights and relaxed parking requirements, if they provide affordable housing near transit, major roads, and employment centers. Projects that are entirely affordable may qualify for incentives throughout more areas of the city.
In single-family zones, these incentives apply only if the property is owned by public agencies or faith-based organizations, which represents just 1% of those lots. Most eligible properties are located in residential neighborhoods designated for apartments.
This situation raises concerns among tenant and housing advocates, who urge the city to consider measures to prevent tenant displacement. Older apartment units, which make up a significant portion of the housing stock in Los Angeles, are covered by rent control laws that limit rent increases and ensure tenant stability.
Laura Raymond, director of the ACT-LA coalition, expressed that these older units are vital for many working-class Angelenos. She argues that putting them at risk contradicts efforts to address housing issues.
How can the Citywide Housing Incentive Program balance the needs of new housing development and the protection of existing tenants?
Interview with Laura Raymond, Director of ACT-LA Coalition, on Los Angeles’ Citywide Housing Incentive Program
News Director: Thank you for joining us, Laura. The Citywide Housing Incentive Program aims to encourage development by offering various incentives to builders, but many fear this could lead to tenant displacement. What are your main concerns regarding the impact of this ordinance?
Laura Raymond: Thank you for having me. Our primary concern is that this ordinance risks the displacement of tenants living in rent-controlled apartments, which are critical for many working-class families in Los Angeles. The older units subject to rent control comprise a significant portion of our affordable housing stock, and removing these protections could exacerbate the housing crisis we’re already facing.
News Director: The ordinance proposes increased building heights and relaxed parking requirements for developers who incorporate affordable housing near essential facilities. In your view, does this strategy adequately protect existing tenants?
Laura Raymond: While the intention behind boosting affordable housing is commendable, the execution poses serious risks to current residents. Simply put, increasing development opportunities without robust tenant protections can lead to the loss of these older rental units. We can’t afford to prioritize new developments at the cost of stability for those already housed in our communities.
News Director: You mentioned that older rental units are crucial for many working-class Angelenos. Can you elaborate on why these units are so important?
Laura Raymond: Absolutely. Rent-controlled apartments provide stability for individuals and families who may already be struggling to make ends meet. They offer predictable housing costs in an ever-inflating market. For many tenants, these units are not just a roof over their heads; they’re a key part of their financial and emotional security within the community they know and love.
News Director: The city has stated that it aims to meet ambitious housing goals, including new affordable homes by 2029. How do you suggest balancing the needs of new developments with tenant protections?
Laura Raymond: Any plan to increase housing supply must include strong measures to safeguard existing tenants. This could involve stringent requirements that ensure tenant displacement is avoided, such as commitments to maintaining rent control in older units and guarantees for relocation assistance that truly supports those affected. We need to create affordable housing in a way that respects the rights and needs of the communities already living here.
News Director: And regarding the proposed measures to assist displaced tenants, such as returning to new buildings at prior rent levels, do you believe these are sufficient?
Laura Raymond: While the notion of allowing displaced residents to return at their previous rent is a step forward, it may not be adequate in practice. The reality is that if suitable housing isn’t available, or if market pressures lead to significant rent hikes in new developments, this option could become meaningless. We need a comprehensive approach that guarantees ongoing affordability and stability in our housing markets.
News Director: Lastly, as the city plans rezoning to meet housing demands, how do you believe community voices can be included in this process?
Laura Raymond: Community input is crucial. We need to ensure that the voices of tenants, especially those in vulnerable positions, are included in discussions around zoning and development. This means engaging with local organizations, holding public forums, and genuinely considering their feedback in policy-making. Only then can we create solutions that work for everyone, not just developers.
News Director: Thank you, Laura, for sharing your insights. It’s clear that as Los Angeles navigates its housing challenges, considerations for existing tenants must remain at the forefront of any development agenda.
Laura Raymond: Thank you for covering this important topic. It’s vital that we continue this conversation as the city moves forward.
Los Angeles aims to meet a state-mandated goal of building 457,000 homes, with almost half being affordable for low-income families by 2029. Plans indicate that 255,000 of these homes would be created through land rezoning.
As the city tries to alleviate its housing affordability crisis, it claims to be enhancing protections for displaced tenants. A separate proposal suggests that low-income residents affected by demolitions can either return to the new buildings at their previous rent or at an affordable rate based on their income.
Additionally, these residents may receive relocation assistance, potentially exceeding $100,000, to help them pay for market-rate units. The planning department has not estimated how many apartments could be demolished under this rezoning plan but acknowledges that added tenant protections will raise costs for developers and limit unit demolitions.