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Tenant Utility Bills / Third-Party Billing Agencies / Landlords / Ratio Utility Billing System (RUBS) / Transparent Process Implementation

Council File 22-0178

Introduced
2022-02-16
Last changed
2026-05-15
Status
open
Expires
2028-05-15
Committee
Housing and Homelessness Committee
Mover
PAUL KORETZ
Second
MIKE BONIN

Brief

Councilmembers Paul Koretz and Nithya Raman introduced a motion to regulate how landlords bill tenants for utilities through third-party agencies and Ratio Utility Billing System (RUBS). The motion directs implementation of transparent billing processes and disclosure requirements. Council adopted the motion 13-0-2 in February 2023. The Los Angeles Housing Department submitted a report in December 2025, referred to the Housing and Homelessness Committee, which scheduled the item for discussion on May 20, 2026.

Full summary

This motion, introduced by Councilmembers Koretz and Raman in February 2022, addresses a practice common in master-metered apartment buildings where landlords use third-party billing companies to divide shared utility costs among tenants using allocation formulas — known as Ratio Utility Billing Systems, or RUBS — based on factors like square footage, number of occupants, or bedrooms rather than actual measured usage. Approximately 19% of RSO rental units in Los Angeles are master-metered. Tenant advocates have complained that renters often receive utility bills without any documentation explaining how charges were calculated, making it impossible to verify accuracy. Landlord groups have argued that RUBS encourages conservation by making tenants financially responsible for usage, and that transparency through lease addenda is a reasonable middle ground. After the Housing Committee approved the motion as amended in October 2022 and Council adopted it 13-0-2 in February 2023, the Los Angeles Housing Department conducted extensive research and stakeholder outreach and submitted a detailed policy report in December 2025. That report goes significantly further than the original transparency framing: LAHD now recommends outright prohibiting RUBS and all other unmetered utility allocation methods for RSO units by amending the Municipal Code's definition of "Rent" to include master-metered utility costs. Under this approach, landlords could no longer impose separate utility charges on RSO tenants at all, and any utility cost increases would fall within existing RSO rent increase limits. LAHD also recommends that a subsequent motion from Councilmembers John Lee and Monica Rodriguez be addressed through a detailed enforcement framework including an administrative enforcement program, a fine schedule, and a private right of action for tenants. For landlords currently charging RUBS under existing leases, LAHD proposes a transition mechanism: landlords could apply for a one-time permanent rent adjustment calculated on the tenant's average monthly RUBS payment over the prior 12 months, excluding administrative fees, and capped at the Housing Authority of the City of Los Angeles Utility Allowance rates as of December 1, 2025. Landlords who fail to apply within two years of the ordinance's effective date would forfeit the right to any adjustment, and tenants would no longer owe separate utility charges. For non-RSO units — where the City cannot regulate rent increases — LAHD recommends mandatory written disclosures at the start of tenancy covering billing methodology, itemized charges, administrative fee caps, access to master meter statements, and a formal dispute resolution process with 15-day response windows. Non-compliance would give tenants an affirmative defense in eviction proceedings and could result in administrative citations or a private right of action. The December 2025 LAHD report was referred to the Housing and Homelessness Committee in January 2026, which scheduled it for a hearing on May 20, 2026. The file remains open pending committee action and any subsequent direction to the City Attorney to draft the ordinance.

Activity (15)

  • 2026-05-15 Housing and Homelessness Committee scheduled item for committee meeting on May 20, 2026.
  • 2026-01-06 Los Angeles Housing Department document(s) referred to Housing and Homelessness Committee.
  • 2026-01-05 Document submitted by Los Angeles Housing Department, dated December 29, 2025.
  • 2023-02-15 Council action final.
  • 2023-02-14 Council adopted item as amended, subject to reconsideration, pursuant to Council Rule 51.
  • 2023-02-10 City Clerk scheduled item for Council on February 14, 2023.
  • 2022-12-27 Community Impact Statement submitted by Mid City WEST Neighborhood Council.
  • 2022-10-12 Housing Committee approved as amended .
  • 2022-10-07 Housing Committee scheduled item for committee meeting on October 12, 2022.
  • 2022-07-29 Community Impact Statement submitted by NoHo Neighborhood Council.
  • 2022-07-22 Community Impact Statement submitted by Palms Neighborhood Council.
  • 2022-05-07 Community Impact Statement submitted by Hermon.
  • 2022-04-28 Community Impact Statement submitted by Echo Park Neighborhood Council.
  • 2022-03-31 Community Impact Statement submitted by North Westwood Neighborhood Council.
  • 2022-02-16 Motion referred to Housing Committee.

Documents (28)

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