It's an unprecedented move, but developer Champion Real Estate hopes to be "part of the solution" for pricey Los Angeles.
Bianca Barragan reports that the developers of a 210-unit apartment tower in Hollywood will voluntarily subject the project to L.A.'s rent stabilization ordinance, which caps rent increases for apartments at 3 percent per year.
"The ordinance applies to housing built prior to 1978—not new projects—so the decision is almost totally unheard of," Barragan notes.
As part of the new project, several existing apartment buildings will be demolished. The company now says it will relocate those tenants during construction—paying the excess rent they'll incur in the temporary units—and save them a spot in the new building at their old rent.
Prior to the announcement, tenants in the existing buildings had been organizing against the teardown of their homes. They will now pivot to holding Champion Real Estate accountable to these promises.
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