Some LA Landlords seek relief from rent hike freeze before its 2024 expiration

Some Los Angeles area landlords are hoping to have the city's COVID-era rent freeze on rent-controlled apartments lifted.

The rent freeze runs through February 2024, but some say that the ordinance is unconstitutional.

Matthew Millen has been a landlord since 1979, when he purchased a three-unit building in San Pedro and he said he relies on the property for his income.

"I have a foster son whose wife passed away and I am helping him support his children who are 14, 11, and 8… and my income is frozen," said Millen.

"But the city council didn't tell Home Depot they couldn't raise the price of their goods or the plumbers that they couldn't increase their prices or the roofers. Everything I buy is going up."

As a voice for landlords, the Apartment Assoc. of Greater LA is asking a judge to overturn the rent hike freeze, saying that inflation has taken a toll on its members who are struggling to make a profit.

"Insurance has gone way up, government fees have gone way up, trash hauling fees, utilities have gone up and it's just impossible to stay in business when you're unable to increase your revenue to match these large cost increases," said Dan Yukelson, Exec. Director Apartment Assoc. of Greater LA.

Yukelson explained that there are many mom-and-pop landlords who have their entire income, or retirement income wrapped up in their property, and they are struggling.

The lawsuit calls the rent freeze illegal, and unconstitutional and is asking the courts to immediately overturn it. The suit also asks for monetary damages.

"I have estimated the damages as well over 3 billion dollars of lost rent increases," said Yukelson.

Tenant rights groups say the freeze is still needed because the average tenant is behind about three months in rent, totaling about $6,000 in rent payments.

Larry Gross with the coalition for economic survival says the lawsuit is frivolous, but not surprising. "The apartment association files, unsuccessful lawsuits, challenging rent, control, and tenant rights as often as you get those annoying solicitation marketing calls," said Gross.

He anticipates a sizable increase in evictions once the rent freeze expires.

"So we're on track to a real economic crisis beyond anything we can imagine. And really, the solution is to keep people in place, because if they're evicted, we already have the highest homeless population in the nation," said Gross.