Surging Sewer Fees: Challenges for LA Property Owners

Surging Sewer Fees: Challenges for LA Property Owners

In a recent article by the Los Angeles Times regarding sewer rates in Los Angeles, the city’s Energy and Environment Committee convened on May 10th to review a proposal from L.A. Sanitation and Environment (LASAN) suggesting a substantial 22% increase in sewer rates effective October 1st, with further increments that could more than double the current rates by 2028.

The proposal entails a series of seven sewer fee hikes by mid-2028, with the initial increase slated for October 1st, 2024. For multifamily properties, this would elevate the bimonthly rates from $145.00 to $177.00 initially and potentially reach $299.00 by July 2028. This hike also affects single-family rates, raising them from $72.27 to $92.08 initially.

This proposal has sparked concern among rental housing providers and property owners who are already grappling with challenges like rent moratoriums and inflationary pressures. The prospect of such a significant fee increase, especially in light of recent economic strains and increased operating costs due to various mandates, including inspection fees, trash hauling fees, and insurance costs, is daunting.

Critics argue that LASAN should explore internal efficiencies and cost reductions before resorting to such steep fee hikes. They call for greater transparency and urge the City Council to seek an independent assessment of the proposal’s merits and explore alternative solutions, such as spreading out the increases over a more extended period or restructuring to cover current debt obligations.

As we navigate through the implications of the proposed sewer rate increases in Los Angeles, it’s crucial to stay engaged and advocate for solutions that safeguard your property investments and tenants’ interests. At illi Commercial Real Estate, we understand the challenges faced by landlords, tenants, and investors and we’re here to support you. Schedule a call today to learn how we can tailor our services to meet your needs and protect your assets in an evolving market.

Source: latimes.com – “Another L.A. budget bummer: Residential sewer fees set to double by 2028” (https://www.latimes.com/california/newsletter/2024-05-04/la-on-the-record-newsletter-sewer-fees-could-double-by-2028-l-a-on-the-record)