The Los Angeles Housing Department (LAHD) frequently receives inquiries as to whether upscale rental units are exempt from the Rent Stabilization Ordinance (RSO). For the most part, the answer is no. There is one exception, however: A rental unit is considered a luxury housing accommodation ONLY IF the landlord obtained a Luxury Exemption Certificate from the LAHD by documenting that the monthly rent charged for the unit on or before May 31, 1978 was at least:

1.    $302 for a unit with no bedrooms

2.    $420 for a unit with one bedroom

3.    $588 for a unit with two bedrooms

4.    $756 for a unit with three bedrooms

5.    $823 for a unit with four or more bedrooms

In order to obtain a luxury exemption, the property owner needs rental records from 1978 to document the rent charged at that time.

If the tenant is told that the rent can be raised to market rate because the unit was found to be a Luxury rental unit in the past, the landlord or tenant can request a copy of the Luxury Exemption Certificate issued to the property. Once exempted under this provision of the RSO, the rental unit is no longer under the RSO, even if it is no longer luxurious.

How to file for an exemption:

Use the online Luxury Exemption application. Any supporting documentation uploaded to the online application must also be mailed and received by the Department within 30 days of filling the application. For your convenience, a mailing label will be provided at the completion of the application.


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