New 2020 CPI For 1482 Rent Cap Properties
2020 CPI RELEASED
As you remember, 1482 rent cap calculations must use the Department of Industrial Relations' CPI Index value in April of each year. Thus far in 2020 we have been using the April 2019 CPI of 3.34%. I've been watching the DIR for their posting of the California April 2020 CPI as it is published mid-June.
The DIR has posted the new 2020 CPI Index value, thus going forward new 1482 leases you write are subject to 5% + 2020 CPI. According to my calculations, our new 2020 CPI is.....
DRUM ROLL PLEASE . . .
Thus, the 2020 Rent cap
for new 1482 leases => 5 + 1 = 6%
NOTE: Remember that SB County STILL continues to be under the Governor's 2017 Anti-Gouging Executive Order prohibiting a price increase of more than 10% of the previously charged or advertised price.
For rental housing that was not rented or advertised for rent prior to a declaration of emergency, the price cannot exceed 160% of the fair market value of the rental housing as established by HUD.) Executive Order N-22-19 extended price gouging protections in Santa Barbara and 7 other counties until December 31, 2020. https://www.caloes.ca.gov/cal-oes-divisions/legal-affairs/price-gouging.