Palm Springs Rent Stabilization Ordinance

The Palm Springs Rent Stabilization Ordinance (RSO) is a comprehensive rent control law established in 1980 that remains in effect for a limited number of residential rental units.

Covered Properties and Exemptions

The scope of the RSO has been significantly limited over time, primarily by the statewide Costa-Hawkins Rental Housing Act and local initiatives:

Fully Covered Units (Rent and Eviction Controls): Units must have been:

  • Constructed before April 1, 1979 (or had construction begin before that date).

  • Renting for less than $450 per month as of September 1, 1979.

  • Continuously occupied by tenants since December 17, 1994, due to a vacancy decontrol provision passed in 1994 (Measure KK). If a tenant voluntarily vacates or is evicted for cause, the unit is generally removed from rent control protection.

Exemptions: Properties generally exempt from the RSO include:

  • Units built on or after April 1, 1979.

  • Units that rented for $450 or more in 1979.

  • Single-family homes, condominiums, and new construction after February 1, 1995, due to Costa-Hawkins.

  • Buildings of four units or less, where one unit is owner-occupied.

  • Government-owned or subsidized units.

  • Hotels and recreational vehicle parks.

RENT INCREASE LIMITATIONS

The ordinance restricts the amount and frequency of rent increases for covered units:

  • Maximum Annual Increase: Rent increases are limited to no more than three-fourths (75%) of the percentage increase in the Consumer Price Index (CPI) over any one-year period.

  • Increases cannot be imposed more frequently than once in any 12-month period.

  • Landlords can petition the Rent Review Commission for an Extraordinary or Other Hardship Increase above the automatic CPI formula.

    • The purpose is to ensure the landlord receives a fair financial return, generally defined in terms of net operating income.

    • Guidelines for hardship increases permit the inclusion of certain purchase-money financing interest payments (debt service costs) in the operating expenses calculation.

    • Under this process, a landlord can seek increases up to 50% above the unit's 1979 net operating income.

Landlord and Tenant Requirements

  • Landlords of covered units must annually register their rental units with the Rent Review Commission and pay a fee. Failure to register or pay the fee can result in the landlord being ineligible for a rent increase or hardship adjustment.

  • The RSO provides tenants with just cause eviction protections.

  • Landlords are required to reduce rents if they reduce "base year" (1979) services.

  • Landlords must provide a 90-day written notice for any rent increase under the ordinance.

Note on Statewide Law: Properties not covered by the local RSO may still be subject to the California Tenant Protection Act of 2019 (AB 1482), which provides a statewide rent cap (5% plus CPI, or 10%, whichever is lower) and just cause eviction protections for many properties.



Peregrine Legal Group, PC, represents tenants throughout Palm Springs. Contact us to schedule a consultation.


City Website: https://www.palmspringsca.gov/government/departments/housing-community-development/rent-control 


Disclaimer: This information is for general knowledge only and is not legal advice. For specific legal issues, you should consult with a qualified attorney or contact the Pasadena Rent Stabilization Department.