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The Pasadena Rental Housing Board on Thursday night unanimously adopted a resolution allowing a 2.75% rent increase in Pasadena from October 2023 to September 2024.
Known as the Annual General Adjustment or AGA, the number determined by the Rental Board sets the allowable rent increase for housing in the city, as provided by the Pasadena Fair and Equitable Charter Amendment.
The Charter Amendment provides that rents can only be raised pursuant to the AGA or a petition for rent increase.
The AGA is equal to 75% of the percentage increase in the Consumer Price Index (CPI).
As originally written, the Charter Amendment required the Pasadena Rental Housing Board to announce the first AGA by September 1, 2022, and for it to take effect not prior to October 1,2022.
However, the Charter Amendment did not actually go into effect legally until December 22, 2022.
As a remedy for the implications of this, the Pasadena Rental Housing Board has adopted two AGAs: the 2022-2023 AGA, which covers the period of December 22, 2022 through September 30, 2023 and the 2023-2024 AGA which covers the period of October 1, 2023 to September 30, 2024.
According to the resolution approved Thursday, a rent increase of 6% is allowed for tenancies commencing on or before May 17, 2021 and 5.5% for tenancies commencing in June 2021 but before May 2022.
For tenancies commencing in July 2021 but before May 2022, and tenancies commencing in August 2021 but before May 2022, the allowable increase is 5%.
For tenancies commencing in September 2021 but before May 2022, the AGA is at 4.75% while for tenancies commencing in October 2021 but before May 2022, the AGA is 4%.
A cap of 3.5 % is set for tenancies commencing in November 2021 but before May 2022. For tenancies commencing in December 2021 but before May 2022, the AGA is set at 3.25%.
The AGA is set at 2.25% for tenancies commencing in January 2022 but before May 2022; 2% for tenancies commencing in February 2022 but before May 2022; 1 % for tenancies commencing in March 2022 but before May 2022 and 0.5% for tenancies commencing in April 2022 but before May 2022.
From October 1, 2023 to September 30, 2024, rent increases will be capped at 2.75%, as the CPI increase from March 2022-2023 was at 3.8 percent.
“Now, therefore, be it resolved by the Pasadena Rental Housing Board that the Annual General Adjustment for 2024 is two and three-fourths percent (2.75%), and it shall be effective October 1, 2023,” the resolution reads.
Karen Tiedemann, representing legal consultant Goldfarb Lipman Attorneys, said the 2022-2023 AGA is retroactive.
“If a property owner took that increase, which is a 6 % increase sometime between December 22, 2022 and today, what the regulation is saying is that is a valid rent and that the property owner is not required to refund that rent increase.”
Tiedemann said property owners can choose if they will take the 2022-2023 or 2023-2024 AGA as the charter amendment says there can only be one increase for every 12 months.
“If a property owner did not take the first AGA, they can take it now but they cannot take the 2023-2024 AGA until 12 months have passed from wherever they take the first AGA.”
“Property owners can make a choice. They can take the first AGA which is 6% for tenancies that commenced prior to May 17, 2021 and then delay the 2023-2024 AGA or they could wait or just take the 2023-2024 AGA which is 2.75%., which will be available starting October 1st.”
She reminded the charter does not allow banking for AGA. If landlords don’t take one of these AGAs before they expire, they will no longer be available, according to Tiedemann.
Meanwhile, at their meeting, the Pasadena Rental Housing Board also unanimously approved the $25,000 contract with Ultimate Staffing Services for temporary staffing support services for Pasadena Rental Housing Board.
For more information about the Pasadena Rental Housing Board, including meeting dates, times, and agendas, visit the Rental Housing Board webpage.
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