Housing Justice
Defending the Constitutionality of Renters’ Rights
Case Overview
our Organizational CLIENTS
Public Counsel Legal Team
The City of Los Angeles enacted the Rent Stabilization Ordinance (LARSO) in 1979 in response to a severe housing shortage and escalating rent increases that disproportionately harmed low- and moderate-income tenants, senior citizens, and those on fixed incomes. LARSO was established to regulate rent increases, protect tenants from unjust evictions, and maintain housing affordability, while making sure landlords receive a fair return on their rental units. The ordinance remains essential to alleviating the housing crisis in Los Angeles and preserving stable and accessible housing to vulnerable populations.
It has been updated many times over the past decades, including to require relocation assistance to tenants who are evicted for not-at-fault reasons, and having property owners post a notification of these basic rights at the property. In 2023, in response to tenant advocacy and a growing awareness of the eviction-to-homelessness pipeline, LARSO was amended to require that unpaid rent reach a minimum threshold to avoid small-dollar evictions, and to limit the allowable baseline rent increase to 4%. Plaintiffs challenge these provisions, some longstanding and all having precedent in California and federal law, as violating property owners’ constitutional rights.
The impact to tenants if these protections are overturned would be devastating: 650,000 homes in Los Angeles are protected by LARSO. One third of Los Angeles renters spend more than half of their monthly income on rent. One fifth of Los Angeles renters are in poverty, and of those, half spend over 90% of their monthly income on rent. LARSO households are more frequently overcrowded as well.
SAJE, represented by Public Counsel, Munger, Tolles & Olson LLP, and the USC Housing Law & Policy Clinic, has intervened in this lawsuit in defense of renters citywide.
Court
U.S. District Court for the Central District of California
Status
On Appeal at the U.S. Court of Appeals for the Ninth Circuit
Case No.
No. 5:24-cv-02679 (District Court)
25-5029 (Ninth Circuit)
Filed
12/19/2024
Case Developments
FILING
02/10/2026
Parties Complete Briefing on Plaintiffs’ Appeal to the Ninth Circuit
Having had all their claims dismissed by the District Court, Plaintiffs sought review by the Ninth Circuit and the parties fully briefed the appeal.
FILINg
01/27/2026
Five Amicus Briefs Are Filed in Support of Appellees
Recognizing the significant national importance of this case, five amicus briefs were filed by constitutional law scholars, cities, and other experts in support of appellees SAJE and the City of Los Angeles in Plaintiffs’ appeal to the Ninth Circuit.
Property Law Scholars Amicus Brief
First Amendment Scholars Amicus Brief
Housing & Homelessness Experts Amicus Brief
Ruling
07/31/2025
District Court Dismisses All Claims
After reviewing the briefing filed, Judge Bernal granted SAJE’s and the City of Los Angeles’ motions to dismiss Plaintiffs’ case. The Court dismissed all of Plaintiff’s claims for lack of subject matter jurisdiction or failure to state a claim.
Order Granting Motion to Dismiss
Plaintiffs’ Opposition to City’s Motion to Dismiss
RULING
04/30/2025
Tenants Rights Group Are Allowed to Intervene
Judge Bernal found that SAJE was entitled to intervene in the lawsuit as of right.
FILING
03/17/2025
SAJE Files Motion to Intervene
SAJE, having advocated for many of the challenged laws, knowing their vital importance to keeping tenants housed and preventing homelessness in Los Angeles, and recognizing the national importance of this case, filed a motion to intervene as defendants in order to ensure that the voice of impacted tenants was adequately represented to the court.
Filing
12/19/2024
Plaintiffs File Complaint
Plaintiffs, property owners who own properties regulated by LARSO, filed a civil action in the United States District Court for the Central District of California, challenging the constitutionality of landlord-tenant laws adopted by the City of Los Angeles. The challenged laws include (1) the “Fair Market Rent” eviction protection; (2) the temporary 4% cap on rent increases for rent stabilized tenants; (3) relocation requirements for no fault evictions under LARSO; and (4) common area notice requirements.
