Los Angeles lawmakers voted Wednesday to stiffen city rules surrounding the demolition of rent-controlled apartments, aiming to ensure that more affordable housing is built.
But business groups have challenged whether the plan is fair — and whether it will stand up in court.
Under a California law called the Ellis Act, landlords can eject tenants from rent-controlled apartments if they are tearing down a building or getting out of the rental business.
In Los Angeles, if landlords tear down rent-controlled units and replace them with new rentals within five years, all of those new units fall under city rules that limit rent increases. There’s also an...