Santa Monica Rent Control Board asks City Council for a charter amendment on the Nov. 2 ballot that would simplify formula used to calculate yearly rent increases.
By Jenna Chandler | June 29, 2012
Santa Monica voters could be asked to simplify the method used to calculate yearly increases to rent paid by tenants of rent-controlled units in the city.
In a 4-0 vote Thursday night, the Rent Control Board recommended to the City Council that it place a charter amendment on the Nov. 2 ballot.
Each year the board approves rent increases designed to cover the costs a landlord pays to maintain their properties, such as property taxes, utilities and business license fees.
If ultimately approved by voters, the formula used to determine how much rent should increase would be equal to 75 percent of the percentage increase in the Consumer Price Index, the federal government’s tool for measuring inflation rates.
“Going to a 75 percent of CPI is somewhat tried and true, it’s really just following the lead of several of our sister cities,” said Rent Control Board member William Winslow.
For the past 30 years, the board has calculated the increases using a formula that involves surveying landlords to find out how much and in what areas their expenses have increases and weighting those components based on local median rents.
“Santa Monica is the only city with rent control in the state using this methodology for determining what the general adjustment should be,” Winslow said. Continue reading