From the Rent Board:
“The Santa Monica Rent Control Board has announced a 2.8 percent general adjustment (annual rent increase) to controlled rents effective September 1, 2023. Following a public hearing on June 8th, the Board voted to limit the amount of the increase to $67 for units with current Maximum Allowable Rents (MARs) of $2,375 and above. Both the general adjustment (GA) and the maximum increase (ceiling) that the Board may choose to apply are determined by formulas in the Santa Monica rent control law.
The law specifies the annual GA is “equal to seventy-five percent of the percentage increase in the Consumer Price Index (CPI) … as reported and published by the U.S. Department of Labor, Bureau of Labor Statistics, for the 12-month period ending as of March of the current year,” rounded to the nearest tenth decimal place. The law also states that the general adjustment will not be less than zero percent nor greater than three percent.
The percentage increase in the CPI for the period ending in March 2023 was 3.7 percent. Seventy-five percent of 3.7 percent is 2.775 percent, and when rounded, equals 2.8 percent.
For units that are eligible for an increase this year, the 2023 GA will be applied to the MAR in effect on August 31, 2022, plus three percent, with a maximum increase of $70. The passage of Measure RC by Santa Monica voters in November 2022 resulted in this modification to the usual approach. After a six percent GA went into effect in September 2022, Measure RC reduced MARs from February to August of this year to 0.8 percent (maximum $19) above the August 31, 2022, MAR. Therefore, the 2023 general adjustment will be calculated on a MAR that is slightly higher than the current MAR for a unit.
In late June, the Rent Control Agency will mail all landlords and tenants unit-specific information about the 2023 GA. Landlords will also receive a form they may use to properly notice tenants of the rent increase that may be implemented no earlier than September 1. In a separate mailing, landlords will receive a bill for annual registration fees that must be paid by August 1. Rents may not be increased until the fees are paid in full and the owner is in compliance with the Law.
All tenants and landlords are encouraged to check their mailboxes for this important correspondence and should contact the Rent Control Agency if nothing is received by mid-July.”