L.A. Poor Spend Bigger Share of Income on Rent
More and more poor Los Angeles residents are spending a greater share of their income on rent, often squeezing into overcrowded apartments, a new study of Los Angeles’ rent control laws has found.
But despite these “disturbing” trends, the city’s top rent control official told a City Council committee Friday that the study suggests that the law is essentially working and is not in need of a major overhaul. The study also said the city should retain its 1985 ordinance linking rent increases on controlled units to the regional Consumer Price Index.
Tenant rights advocates said in interviews that the report clearly shows that conditions are worsening for poor renters, underscoring a need to further tighten the city’s laws.
“They’re saying everything is fine and peachy. Well, landlords are doing great . . . but poor families are doubling up because they can’t afford the housing out there,” said Larry Gross, executive director for the Coalition for Economic Survival.
Comparison Made
The study reported that the average monthly gross rent (including gas and electricity) for a controlled apartment was $525 in 1987, compared to $444 in 1984. In uncontrolled units, the average 1987 rent was $675.
At the same time, the study found that the number of households facing “overcrowded conditions”--defined as more than one person per room per unit--increased from 16% in 1984 to 21% in 1987.
Over the same time period, the average share of a renters’ gross income devoted to housing rose from 28.5% to 29.2%. That was still below the federally defined “affordability standard” of more than 30%.
However, the report noted, 38% of all households living in rent-controlled units paid above the threshold, and one-quarter paid more than 40% of their income. The average rent paid by households earning less than $10,000 a year was 58% of their income.
Although the report shows the overall vacancy rate on Los Angeles’ rental housing has risen in recent years--from 3.5% in 1984 to 4.3% in 1987--many of the vacancies are found in high-priced, newly constructed apartments that are not subject to rent control.
‘Loss in Affordable Housing’
“We’ve had an incredible loss in affordable housing,” Gross asserted. “The vacancy rate on affordable housing is zero.”
The 340-page study, prepared by consultants Hamilton, Rabinovitz & Alschuler, was based on surveys of tenants and analysis of landlords’ tax records. The study comes at a time when the City Council is pondering revisions in the rent control law.
Asked by Councilwoman Joan Milke Flores what changes are needed in the ordinance, Barbara Zeidman, the city’s rent stabilization director, said: “Leave it alone.”
Despite some problems, “there is substantial evidence that it works well,” Zeidman said. The law has “largely achieved the goals” set by the City Council when it enacted the rent control law.
Meanwhile, representatives of the Apartment Owners Assn., which opposes rent control, said the city’s report showed little understanding for the economic realities faced by landlords. Estelle Tenenbaum, chairman of the Apartment Owners Assn. Political Action Committee, said the consultants failed to take into account the rising costs faced by landlords for utilities, water and sewage bills.
