The California appeals court recently ruled that Los Angeles’ Relocation Assistance Ordinance breaks state law and is unenforceable. It would’ve placed a heavy burden on landlords to pay for some tenant relocations that were no fault of their own. This is another instance where a locality wanted to be more pro-tenant than state law allowed. If you own rental property in Los Angeles, this ruling may affect you and your tenants.
What Is Los Angeles’ Relocation Assistance Ordinance?
The ordinance at issue (Sec. 165.09) involved the following:
- The tenant giving up their apartment after being given notice of a rent increase larger than the Consumer Price Index – All Urban Centers plus 5% or 10%
- The assistance amount would’ve been three times the fair market rent of a unit of similar size
- If a single-family residence was involved, that amount would be reduced by one month’s rent if the property owner met certain requirements
The ordinance first went into effect in March 2023.
What Is the Costa Hawkins Rental Housing Act?
The California Legislature passed the Costa Hawkins Rental Housing Act in 1995. This state law limits how far local rent control rules can go. It protects a landlord’s right to set the starting rent on a home in the following situations:
- When a tenant moves out, and a new tenant moves in
- The home was built after February 1, 1995
- It was built before that date and is not subject to rent controls
- When the home is a single-family house or a condo that is separate from the title of any other unit
Cities and counties can pass local rent control laws, but they must follow the statute’s rules.
Why Was the Ordinance Overturned in the Superior Court?
The Apartment Association of Greater Los Angeles (AAGLA) sued the City of Los Angeles over the Relocation Assistance Ordinance. The AAGLA stated the ordinance conflicted with the Costa Hawkins Act because it punished landlords for using a right the state law gives them – to raise rent to market value on exempt homes.
The court in December 2025 agreed and found that requiring landlords to pay relocation money when Costa Hawkins specifically allows them to raise rent to market value on non-rent-controlled units frustrates the purpose of the law. Because of this conflict, the court ruled the relocation payment requirement was overridden by state law.
Why Was That Decision Upheld on Appeal?
The City of Los Angeles appealed to the California Court of Appeal. The court in April agreed with the lower court ruling. Its reasoning followed a similar case involving the City of Pasadena, decided in 2025, where the court had ruled that a relocation payment rule there could not apply to homes exempt from rent control.
The Court of Appeal found that conditioning a landlord’s right to raise rent on the payment of relocation money conflicted with Costa Hawkins. The ruling applies only to Costa Hawkins exempt homes, such as single-family houses, condos, and newer construction. It does not change relocation pay rules for true no-fault evictions involving rent-controlled housing.
How Does This Decision Affect Los Angeles Landlords?
Landlords owning a single-family home, a condo, or another property exempt from state or local rent caps in Los Angeles no longer have to follow the Relocation Assistance Ordinance.
- You can raise rent to market value on an exempt unit without owing relocation money if the tenant chooses to leave
- Relocation payment rules for no-fault evictions involving rent-controlled properties have not changed
This case shows how important it is to know which local rules can lawfully apply to your property and which ones may conflict with state law.
Frequently Asked Questions
What was Los Angeles’ Relocation Assistance Ordinance?
Ordinance No. 187764 required landlords to pay tenants relocation money when the landlord raised rent above a set amount on a rent-controlled exempt home, and the tenant chose to move out.
What is the Costa Hawkins Rental Housing Act?
A 1995 California state law that limits local rent control and protects a landlord’s right to set the starting rent on certain homes, including single-family houses, condos, and newer construction.
Why did the court strike down the ordinance?
Charging landlords a fee for using a right that state law gives them frustrates the purpose of the Costa Hawkins Act, so the local rule conflicted with state law.
Does this ruling affect rent-controlled apartments?
No. It applies only to homes exempt from rent control under Costa Hawkins. Rent-controlled properties are still subject to local relocation and just cause rules.
What should Los Angeles landlords do now?
Review your properties to confirm whether they qualify as exempt under Costa Hawkins, and speak with an attorney before making decisions about rent increases or relocation payments.
We Can Help
AWB Law helps Southern California residential landlords prevent situations from becoming legal issues, and helps address them if one develops. Court rulings like this one can change your rights and responsibilities quickly, so you need someone in your corner who understands the law and your business. Call us at (949) 244-4207 if you have legal questions needing answers or you’re in a situation where you need an attorney.
