As we look ahead, it’s clear that 2025 marked a pivotal year for local housing policy across Southern California. Cities moved aggressively to address housing affordability, tenant protections, and sustainability goals, resulting in a broad set of new ordinances that now shape how rental housing operates at the local level. For multi-family owners and investors, these changes underscore an important reality: the regulatory environment is evolving, and those who stay informed and adaptable are best positioned to succeed.
The city-by-city summary below highlights the scope of housing ordinances adopted during the year. While the volume of new rules is notable, understanding them provides owners with a clearer roadmap for navigating compliance, planning capital improvements, and positioning assets for long-term stability in an increasingly regulated marketplace.
Beverly Hills
One-Year Minimum Lease Mandate: Requires all short-term rentals — including multi-family units and ADUs — to have an initial lease of at least 12 months.
Burbank
Rent “Soft Cap” & Retrofit Rules: Pushed a 4% soft annual rent increase limit triggering relocation fees if exceeded, added renter anti-harassment protections, and implemented seismic retrofit requirements with cost pass-through limits.
Claremont
Equitable Anti-Harassment Ordinance: Protects both renters and landlords from harassment, imposing new restrictions on interactions in all rental housing.
Cudahy
New Eviction Threshold: Bars eviction unless owed rent exceeds HUD’s Fair Market Rent, tightening just-cause standards for owners.
Culver City
Rent Stabilization Revisions Proposed: Potentially expands rent cap coverage to include all fees; adds administrative burdens and extends tenant protections to more property types.
Glendale
Green Building & HVAC Mandates: Requires heat pumps or alternative energy efficiency measures for duplexes, townhomes, and houses when installing/replacing HVAC systems.
Los Angeles (City)
Multiple Owner Costs & Limits:
New enforcement fee for all Non-RSO rental housing.
City-funded Right to Counsel for low-income renters.
Major waste hauling cost increases.
Proposed indoor temperature mandate.
RSO rent increase caps significantly lowered (smaller CPI share, lower ceilings/floors).
Los Angeles (County)
Emergency Price & Eviction Rules: Declared multiple emergencies triggering anti-price-gouging rent caps and expanded eviction protections for disaster-affected renters; steep penalties for violations.
Oxnard
Heavy Penalties & Fees: Tenant anti-harassment ordinance imposes huge statutory and punitive damages; new rental registry and enforcement fees for RSO and Non-RSO properties.
Pomona
Permanent Rent Stabilization: Converts temporary rent cap into a permanent ordinance with a 5% fixed annual increase cap, not tied to CPI — potentially limiting owners’ ability to keep up with costs.
Port Hueneme
Comprehensive Smoking Ban: Extends smoking prohibition to all multifamily units and common areas while obligating owners to enforce compliance.
Santa Monica
Building Performance & Registration: Requires large buildings to cut emissions (eliminate gas appliances) and mandates rental unit registration with stiff penalties and rent-collection restrictions for noncompliance.
West Hollywood
Emergency Lease & Performance Standards:
Temporarily suspends 1-year lease minimum for wildfire evacuees.
New building performance mandates for large rental properties with phased compliance and steep penalties.
Key Takeaways for Multi-Family Investors
Looking forward, the continued focus on housing policy is likely to remain a defining feature of urban real estate markets. For disciplined investors, this environment also creates opportunity — favoring well-capitalized owners, thoughtful operators, and long-term strategies that account for regulation as part of the investment thesis.
By staying proactive, leveraging local expertise, and planning ahead, multi-family owners can navigate these changes with confidence and continue to uncover value in markets where housing demand remains strong. As always, preparation and perspective will be key drivers of success in the year ahead.
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