Subjecting the approximately 210 new apartments to the city’s rent control stabilization ordinance will cap rent increases 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.
“We want to be a part of the solution in ensuring future affordability for existing tenants in the Los Angeles housing market,” Bob Champion, CEO of Champion Real Estate, said in a statement.
The new apartments are part of a large development called 6220 Yucca that will include the tower, plus a four-story building next door. In addition to apartments, the complex will hold 136 hotel rooms and shops and restaurants.
In order to build the project, Champion will demolish a cluster of low-rise apartment buildings. An earlier plan would have made just 43 of the new apartments subject to the city’s rent-stabilization ordinance.
Tenants in the old apartment complex who feared losing their homes had formed a group to fight the project. “We’re really most concerned about the elders and the low-income families,” resident Sasha Ali told the LA Weekly last year. “Where are they going to go?”
In its announcement, Champion also says it will elect to let all tenants in the older buildings to move into “a comparable unit” in the new project and pay the same rent as they did in the old buildings. The company also says it will temporarily relocate all the tenants to new units in the Hollywood area and pay the overage in their new rent.
The project is expected to begin construction in 2019, with completion anticipated in 2022.
“We are excited by the prospect that Yucca and Argyle will provide high-quality homes in the Hollywood area while at the same time maintaining affordability for existing tenants who are an important part of our community,” Champion said.
The developer and city planning department did not immediately say what additional benefits, if any, the developer will receive for electing to bring rent-control to the building.