Hey there! Taylor Avakian here. Been talking with a lot of apartment owners lately about the new laws coming down the pipeline, and I wanted to break down what's happening in a way that actually makes sense. Let's dive into what these changes mean for your properties.
The New LA Housing Element Rezoning Program: What's the Deal?
The City Council just greenlit this program, and honestly, it's a mixed bag for apartment owners. The good news? There are some solid opportunities with updated state density bonus programs and a new Mixed-Income Incentive Program. If you've been thinking about development or adding units, this could be your moment. Just keep an eye on how the zoning changes might affect your current properties.
AB-246: The Big One You Need to Watch
Let's talk about AB-246, which is making waves in the wildfire-prone areas of LA County. Here's the straight scoop:
- They're looking to freeze rents at January 7, 2025 levels during emergencies
- This freeze would stick around for a full year after the emergency ends
- We're looking at a hard 10% cap on rent increases during emergencies
- Breaking these rules could cost you up to $10k per violation
Look, I know this sounds intense. But here's the thing - understanding these changes now puts you ahead of the game.
What Should You Do About It?
After working with countless apartment owners in LA, here's what I'm telling my clients:
- Get Your Documentation in Order: Take a fresh look at your lease agreements. If you've already planned rent increases for 2025, you might want to run those by your attorney.
- Think Long-Term: With these rent caps coming, it's time to get creative about building value. Energy-efficient upgrades or better management systems could help protect your bottom line.
- Make Your Voice Heard: The people writing these laws need to hear from actual apartment owners. Your experience matters - share it.
Let's Talk About Your Strategy
Every property is different, and these changes hit everyone a bit differently. Want to chat about how this affects your specific situation? Hit me up at taylor@thegroupcre.com or 916-996-4421.
At The Group CRE, we're staying on top of these changes so you don't have to. Whether you're thinking about selling, holding, or just want to understand what these changes mean for your property's value, let's figure it out together.
Stay ahead of the curve.
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Taylor Avakian is a multifamily investment expert and the host of No Vacancy, a podcast dedicated to exploring the latest trends, strategies, and insights in the real estate market. As the founder of The Group CRE, Taylor specializes in helping landlords and investors navigate the complexities of multifamily ownership in Los Angeles.