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INDUSTRY Update
CPI Update: Department of Labor and Statistics
Release April CPI Numbers T Provided by Apartment Association of Greater Los Angeles
he U.S. Department of Labor and month from one year ago through April Statistics recently released the new, month from this year) for the region in regional Consumer Price Index for which the property is located.
regions within California for the year
ending April 30, 2021. The State
of California; however, has not yet released the latest Consumer Price Index for California as a whole.
Under California law, Assembly Bill 1482, annual rent increases are limited to 5 percent plus the change in the Consumer Price Index (CPI), or no more than 10 percent of the lowest gross rental rate charged the tenant at any time during the twelve (12) months prior to the effective date of the increase.
Update: Recent changes to determining which CPI to use were made under the California Tenant Relief Act, which was passed earlier this year and which effectively amends and clarifies
• All CPI percentages are to be rounded to nearest 1/10th of a percent.
Under Assembly Bill 1482, the statewide rent control and tenant protection law that became effective in 2020, rental properties subject to the law’s provisions may increase annual rent by five percent plus the regional change in the Consumer Price Index (e.g., CPI + 5%) up to a maximum of 10%. For the Los Angeles-Long Beach region, the change in the CPI is 3.6%, so the maximum annual increase for properties subject to the provisions of Assembly Bill 1482 is 8.6%.
The Apartment Association of Greater Los Angeles will provide an update on its website once the California CPI numbers become available. Visit www. AAGLA.org to become a member.
rent increase provisions Assembly Bill 1482. These modifications are as follows:
contained within
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JUNE 2021 - APARTMENT MANAGEMENT MAGAZINE AMM1/6
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For rent increases that are effective before to August 1st of any year, rental property owners should use the “Last Year” Consumer Price Index (in other words, April month from 2 years ago through April month from one year ago, or last year) for the region in which property is located.
For rent increases effective on or after August 1st of any year, use “Current Year” Consumer Price Index (in other words, April
•