In November, voters passed Measure H, a groundbreaking rent control measure in the city of Pasadena, which amended the city’s charter and took effect Dec. 22. The measure, which provides eviction protections, rent increase limits and rent rollbacks, passed with 53.8 percent of the total votes cast despite a vigorous opposition campaign spearheaded by the California Apartment Association (CAA). The measure will apply in full to about 25,000 apartment units in the city, representing a major disruption to its rental landscape.

The measure creates a new independent rental board to oversee the program and a registry to keep track of rent-controlled apartments. For qualifying properties, it will restrict annual rent increases to three quarters of the inflation rate and implement just cause eviction protections and relocation assistance mandates. The ripple effects of Pasadena’s new law are already apparent in the new year as landlords and tenants alike begin to scramble to meet its requirements. It specifically limits rent increases to once a year, allows tenants to petition for decreases, and requires a tenant be provided relocation assistance if a landlord is reclaiming an apartment or removing a unit from the rental market.

A rent rollback, effective Jan. 1, reverted some tenants’ rents to the amount they were paying on May 17, 2021, if they were living in their current unit on that day – or to the rent they were paying on the day they moved in after May 17, 2021. But while the measure is unfolding, the establishment of a board has yet to take place. And a City Council report is due this week, outlining rules and draft requirements for the board, which is required by the measure as part of the administering and enforcing its provisions.

The Pasadena Rental Housing Board will consist of 11 members, composed of seven tenant members (one from each Council District), and four at-large members that may reside in any Council District in Pasadena, as well as two alternate members; one for the tenant group and one for the at-large group. The board is expected to hold its first meeting on or about May 17.

There are other criteria on whether the new laws will apply to your property, for additional information please do not hesitate to reach out to me at rick@cbi-commercial.com