California Caps Rent Increases on Low-Income Households at 10 Percent

Developers of low-income housing in California who received tax credits for their projects will now face a 10 percent annual cap on rent increases going forward, following approval this month of the rule by the state committee responsible for issuing the credits. The rates for increases will be calculated either at 5 percent plus the increase in the cost of living, or 10 percent, whichever is less. Exemptions to the caps are allowed if  higher rent increases can be proven as necessary for projects to remain financially stable, according to the updated regulations. According to CalMatters, the regulations could ensure renters of the state’s 350,000 privately owned affordable housing developments are free from large rent hikes, with some residents recently seeing such as high as 17 percent or more....