L.A. Tenants Hit With Sudden Rent Hikes Under 'Discounted Rent' Loophole

A legal loophole has allowed some Los Angeles landlords to sharply raise rents on apartments that would otherwise fall under the city's rent stabilization ordinance and pandemic-related rent freeze.

2 minute read

February 18, 2022, 6:00 AM PST

By Diana Ionescu @aworkoffiction


 The Young Apartments — 1621 South Grand Avenue, at the southern end of Downtown Los Angeles.

Downtowngal / Los Angeles Apartments

Despite the city's ostensible rent freeze and eviction moratoriums implemented to help renters stay in their homes during the pandemic, some landlords in Los Angeles are finding ways to dramatically hike rents and threaten tenants with eviction, reports David Wagner.

Tenants who thought the city’s rules protected them have received demands of hundreds of dollars more per month. They’ve been told they could be evicted if they don’t accept the rent increases. When the tenants reached out to the city’s housing department for help, they were told the practice is legal.

The 'gaping loophole' letting landlords suddenly raise rent by hundreds of dollars in apartments technically subject to rent control and COVID protections, Wagner writes, allows landlords to claim that the "original rent" for a unit was higher than what the tenant was paying thanks to a promotion. In the case of Andreina Kniss, whose landlord suddenly raised her rent by $400 per month, "She has never paid that higher amount, and she said Orion did not discuss it with her when she first moved in." But "Kniss was told to read the text of her lease, which states she has been paying a 'discounted' rent for the past year, and that her 'original' rent has always been about $1,000 higher."

According to the city, the perfectly legal process amounts to "expiration of a discounted rent," a provision that many tenants struggling to find housing in the last two years failed to notice or understand. "Jeff Tucker, a senior economist at Zillow, said that instead of offering permanently lower rents, landlords were most likely to offer temporary discounts. Almost 40% of L.A. apartment listings in early 2021 included such concessions, according to Zillow’s research — more than double the rate of concessions being offered in L.A. before the pandemic." Now landlords are trying to make their money back and, due to this legal loophole, tenants are suffering the consequences.

Thursday, February 17, 2022 in LAist

Large historic homes and white picket fences line a street.

The End of Single-Family Zoning in Arlington County, Virginia

Arlington County is the latest jurisdiction in the country to effectively end single-family zoning.

March 23, 2023 - The Washington Post

Amtrak Acela Express train passing through Harrison station in Newark, New Jersey

‘Train Daddy’ Andy Byford to Oversee Amtrak’s High-Speed Rail Efforts

Byford, who formerly ran NYC Transit and Transport for London, could bring renewed vigor to the agency’s plans to expand regional rail in the United States.

March 28, 2023 - StreetsBlog NYC

Buses in downtown Seattle on the dedicated 3rd Avenue bus lanes

Seattle Bus Lane Cameras Capture Over 100,000 Violations

An automated traffic enforcement pilot program caught drivers illegally using transit lanes more than 110,000 times in less than a year.

March 28, 2023 - Axios

View of Statue of Liberty with New York City skyline in background

Immigration Grows, Population Drops in Many U.S. Counties

International immigration to the country’s most populous areas tripled even as major metropolitan areas continued to lose population.

March 31 - The New York Times

Detroit Sports Arena

$616 Million in Development Incentives Approved for District Detroit

The “Transformational Brownfield” incentives approved by the Detroit City Council for the $1.5 billion District Detroit still require approval by the state.

March 31 - Detroit Free Press

A red sign reads, “Welcome to New Canaan.”

Affordable Housing Development Rejected for Lack of Third Staircase in Connecticut

The New Canaan Planning Commission rejected a development proposal, including 31 below-market-rate apartments, for lack of a third staircase, among other reasons, at a time when advocates are pushing to relax two-staircase requirements.

March 31 - Stamford Advocate

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

HUD’s 2023 Innovative Housing Showcase

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.