T
he National Association of REALTORS® (NAR) has organized a coalition of real‑estate groups to file an amicus brief supporting housing providers who challenge Los Angeles’ Rent Stabilization Ordinance (RSO) as excessively restrictive. The coalition includes the California Association of REALTORS®, Greater Los Angeles REALTORS®, Southland Regional REALTORS®, and South Bay REALTORS®.

    NAR has long opposed rent‑control measures and eviction limits nationwide, arguing they harm property owners and distort the housing market. The organization also promotes affordable‑housing initiatives and rental‑assistance programs that benefit both landlords and tenants.

    The core dispute centers on the city’s RSO, enacted in 1979 and expanded after the COVID‑19 emergency. The ordinance now imposes a 4 % rent‑increase cap, mandatory relocation fees, strict notice requirements, and a Fair Market Rent (FMR) eviction restriction. These provisions apply to units built before 1978, which many view as naturally affordable stock. The added restrictions have made it difficult for some landlords to cover operating costs.

    The plaintiffs claim the RSO violates fundamental property rights and constitutional protections. The coalition backs this claim, focusing on the FMR eviction restriction as an “uncompensated taking.” Under the rule, landlords cannot evict tenants who owe less than one month’s rent, but the threshold is set by HUD’s Fair Market Rent for the Los Angeles metro area—often higher than the rent allowed under the RSO. Consequently, landlords are forced to keep non‑paying tenants, and potential buyers may face lower sale prices because of the inability to remove tenants.

    In its brief, NAR stated it “strongly opposes rent control and eviction restrictions because they distort housing markets, discourage investment, and impose undue burdens on property owners, especially small‑scale landlords.”