The Los Angeles City Council approved an update to the Rent Stabilization Ordinance, using a new formula that will set allowable increases for roughly 650,000 units at 4% and remove additional charges for electricity and gas -- the most substantive changes to the policy in more than four decades.

In a 12-2 vote following two hours of discussion, the council instructed the city attorney to draft an amendment to the RSO to codify the changes. The final version differs from the option endorsed by the Housing and Homelessness Committee, which called for a 0% floor and 3% ceiling on annual rent hikes for buildings regulated by the RSO.

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The update approved by the council establishes a 1% floor and 4% ceiling for allowable

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