Landlords in Los Angeles Brace for Double Sewer Fees

The Los Angeles City Council has voted 11-4 to double sewer fees over the next four years, a decision that has sparked significant concern among landlords and business groups.*

Key Points:

• Rate Hike Approval: The increase aims to cover rising construction, materials, and labor costs.

• Budget Dependency: The rate hikes are crucial for the upcoming fiscal year's budget.

• Landlord Impact: Most of the city’s apartments are rent-controlled, meaning landlords cannot pass these costs onto tenants.

• Council Opposition: Councilmembers Monica Rodriguez, Kevin de León, Imelda Padilla, and Heather Hutt opposed the rate hike.

Fee Increase Breakdown:

• Single-Family Homes:

  • October 2024: $92.04 (up from $75.40)

  • July 2028: $155.48

• Small Apartment Buildings (4 units or less):

  • October 2024: $177 (up from $145)

  • July 2028: $299

• Large Apartment Buildings (5 units or more):

  • October 2024: $1,047.84 (up from $858.40)

  • July 2028: $1,770.08

Business Group Concerns:

• Lack of Public Outreach: Accusations that the city did not adequately explain the necessity of the fee increases.

• Financial Strain: Business groups warn this will further burden landlords already unable to raise rents due to pandemic restrictions.

Actions for Landlords:

• Stay Informed: Monitor communications from the city regarding the rate hikes.

• Engage with Associations: Collaborate with groups like the Apartment Association of Greater Los Angeles for support and advocacy.

• Prepare Financially: Adjust budgets to accommodate the increased fees and explore efficiency improvements to offset costs.

Important Takeaways:

• The first rate increase since 2020 aims to address rising operational costs.

• Notifications will be sent to 850,000 parcel owners, with a potential veto if a majority object under Prop. 218.

• Landlords must navigate these changes without passing costs to tenants due to rent control regulations.

By understanding these changes and preparing accordingly, landlords can mitigate the impact of the increased fees.

Photo credit* TRD