Under the City of West Hollywood's Rent Stabilization Ordinance, property owners are assured that the Net Operating Income (NOI) of their rental property may increase at 60% of the percentage increase in the Consumer Price Index (CPI). The forms and worksheets in the Rent Increase/NOI Application are designed to provide the Hearing Examiner with the necessary information to make a decision on an Application.Please refer to and follow the instructions for each box of the Application very carefully. You may obtain an application by contacting the Department by phone or via E-Mail at rsd@ci.west-hollywood.ca.us. By completing the income summary information in Box 7 of the application, and the operating expenses in Box 8, you will be able to enter the current Net Operating Incomes for the Base Year and for the Current Year in Box 9, and calculate if any rent increases may be available under this process. In most cases, the Base Year will be 1983. However, in rare cases, you may be unable to produce the necessary information for 1983, or you may prove that the information for 1983 should not be relied upon. The Hearing Examiner may use a different base year in such cases. If you wish the Hearing Examiner to consider using a year other than 1983 as your Base Year, you are required to petition the Department requesting such a change. This entails providing comparable data for a different Base Year, and income/expense summaries for two subsequent years (e.g. selecting 1987 as the alternative Base Year, and providing summaries for 1988 and 1989). The Current Year must be twelve consecutive months of your choosing within the fourteen months immediately preceding the filing of the NOI Application.
Once you have calculated your Net Operating Incomes for the Base Year and for the Current Year, you must compare these two figures to see whether your NOI has increased at least 60% of the percentage increase in the CPI over the Base Year.
The rate of inflation is measured by the CPI index for the Los Angeles Standard Metropolitan Statistical Area. The CPI is calculated each month by the United States Department of Labor, Bureau of Labor Statistics. The decision on your Application will be based upon the most recent CPI prior to the date you filed your Application. The CPI for 1983 (the Base Year for most Applicants) was 292.7.
In order to determine the percentage change in your NOI from the Base Year to the Current Year, you must subtract the Base Year NOI from the Current Year NOI. Then, divide the growth in the NOI (if any) by the Base Year NOI. The result is the percentage change in your NOI.
It is expected that the Annual General Adjustment assures the vast majority of rental property owners a fair and reasonable return. You should file this an Application only if you believe that you have grounds which support rent increases under this section of the Ordinance.
Generally, an Application will not be accepted if there has been a previous final decision on an Application concerning your property within the last six months. No Application will be accepted for filing for any rental property which has not been properly registered with the City of West Hollywood's Rent Stabilization Department. No Application will be accepted for filing for any rental property for which applicable registration fees or penalties have not been paid in full.
The Application must be accompanied by a filing fee of $500 for buildings with 1-4 rental units. For buildings with 5-9 rental units, the fee is $500 plus a per unit fee of $25 per unit. For buildings with ten or more rental units, the fee is $500 plus a per unit fee of $35 per unit.
The Rent Stabilization Department shall determine whether or not an Application is accepted for filing. If the Application is not accepted, the applicant will be notified within five days of submitting an Application of the reason(s) for which the Application was deemed "non-acceptable."
Once the Application is accepted for filing, the Department will notify the applicant in writing of any additional information required to complete the Application. If the Application is complete, a hearing date will be set and all affected parties will be notified.
A complete Application must include proper documentation of the income and operating expenses of the rental property. The best documentation are copies of receipts, invoices and other items which were prepared at the time the relevant transaction occurred. Attach these photocopies to the Application and bring the originals to your Hearing. Should you desire further assistance with this process, feel free to contact Case Analyst in the Hearings Division at (213) 848-6438.
Question Regarding West Hollywood's Rent Stabilization Ordinance?
The Department of Rent Stabilization may be reached by calling (213) 848-6450 and is located at 8300 Santa Monica Boulevard on the First Floor. Office hours are Monday 8:00 a.m. to 7:00 p.m., Tuesday through Friday 8:00 a.m. to 6:00 p.m. The Department is closed every other Friday to meet AQMD clean air regulations.The Rent Stabilization Ordinance is amended periodically. Tenants and property owners are encouraged to contact the West Hollywood Rent Stabilization Department for the most current version of the Ordinance. This fact sheet is one in a series published by the City of West Hollywood's Rent Stabilization Department.
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