Glendale 60-Day Rent Freeze

The City of Glendale has imposed a rent freeze which will force 323.APARTMENTS to raise rents, since our average historical self-imposed rent increases were actually lower than rent control. This ordinance will adversely impact all 323.APARTMENTS residents who reside in Glendale. Here are the details...

On November 27, 2018, the Glendale City Council adopted an ordinance imposing a 60-day rent freeze. The ordinance was imposed by 4 council members who reversed the overwhelming wishes of voters from California's 40 million population, Glendale's 200,000 residents, and the Governor office. Even though voters had disproportionately voted in favor of free open market rents and against pricing controls, 4 council members chose to administratively override the wishes of millions of people.

This decision effectively means 323.APARTMENTS will be forced to raise rents due to government mandate. Historical overall average rent increases at 323.APARTMENTS had been 2% when calculated over the total average duration of occupancy. This policy was based on free market pricing such that weak economic conditions would result in no rent increases and strong economic conditions would result in higher rent increases based on jobs data, CPI data, and payroll data. Our previous policy allowed households to weather weak economic conditions while remaining in their apartments. However, because of the proposed government mandate, 323.APARTMENTS will be forced to increase rents at a higher rate of 5% every year regardless of market conditions because it will no longer have the advantage of fluctuating its rents to match economic conditions. This means 323.APARTMENTS will be forced to raise rents during weak market conditions thereby forcing some residents to leave their homes. The following are details about the rent freeze...

RENT FREEZE PERIOD:
Dec 27, 2018 to Feb 27, 2019

HOW IT WORKS
For rental agreements started before Sep18, 2018:

• Landlords of multifamily units must limit the rents they charge during the Rent Freeze Period to no more than the rent they were charging for a unit on Sep18, 2018.
• Any rent increases imposed during the Rent Freeze Period may not exceed 5% of the rent in effect on Sep18, 2018.

For rental agreements that started after Sep18, 2018:

• Rents may not exceed the initial rent.
• Any rent increase is subject to the same 5% limitation during the rent freeze period.

The landlord must comply with the notice requirements of state law to impose any rent increase.

Example: If a landlord was charging rent of $1000 per month for a unit on Sep18, 2018 and a rent increase went into effect for that unit on Oct1, 2018 for $1200 per month, the landlord must roll back the rent during the rent freeze period (Dec. 27, 2018-Feb. 27, 2019) to $1000 per month. The landlord may increase the rent during the rent freeze period by as much as 5% resulting in a new maximum rent of $1050 per month.

EXCEPTIONS
The following property types are exempt from the rent freeze:

• Single Family Homes
• Condominiums
• Rental units built on or after February 1, 1995 (this includes all new Wall Street investment bank corporate-owned construction in the Brand and Central corridor)

FUTURE STEPS
Unless extended, the ordinance and the rent freeze expire on Feb27, 2019. The Glendale City Council also directed City staff to prepare a Right to Lease Ordinance which will include a requirement for landlords to offer tenants a one-year lease, non-binding hearings for certain rent increases, and the right for the tenant to receive relocation if rent increases exceed a specified percentage per year.

When does this ordinance take effect?
Effective Dec27, 2018, all rents in Glendale must be rolled back to rent levels in place as of Sep18, 2018. Any rent increases imposed during the Rent Freeze Period may not exceed 5% of the rent in effect on Sep18, 2018. The landlord must comply with the notice requirements of state law to impose any rent increase.

What if a unit was initially occupied after Sep18, 2018?
For tenancies starting after Sep18, 2018, rents may not exceed the rent at initial tenancy and any rent increase is subject to the same 5% limitation during the rent freeze period. The landlord must comply with the notice requirements of state law to impose any rent increase.

Is an owner required to reimburse tenants for rent increases that exceed the 5% rent increase limit between Sep18 and Dec27? No. The rent is reset on Dec27, 2018, to levels in place on Sep18, 2018.

Since the ordinance goes into effect on Dec27, 2018, must Dec rent be prorated? Yes, the Dec rent is subject to a 5-day proration. If the tenant has already paid the rent, then the tenant and landlord may discuss whether to receive a refund for December or a credit for January.

Is my building/unit covered? This ordinance applies to all rental units in Glendale built before Feb1, 1995, on any parcel containing two or more units. This ordinance does not apply to any rental unit built after Feb1, 1995, single family homes, condominiums, or townhouses.

Where can I lookup my building data?
Tax assessor search

If a unit is currently vacant, are there any restrictions as to how much a landlord can charge for rent? No, there are no restrictions on rent of a vacant unit; however, once that unit is rented, the rent cannot increase more than 5% during the rent freeze period.

Can a landlord increase rent on a unit during the rent freeze period? Yes, a landlord is allowed to increase rent by up to 5% during the term of the rent freeze period. The landlord must comply with the notice requirements of state law to impose any rent increase.

What if a rental unit is subject to a written lease agreement during the rent freeze period? If the tenancy is governed by a written lease agreement that has a lease term of more than month-to-month, and the lease term expires during the rent freeze period, the landlord may increase the rent after the expiration of the lease term by up to 5%, subject to the landlord providing the notice required by state law.

What happens with my rent amount after the rent freeze is over? The Glendale City Council will be receiving a report in early February to decide the next steps to be taken.