Southern California cities including Los Angeles and Pasadena have stopped enforcing requirements that landlords pay relocation assistance to tenants facing large rent hikes. Recent court decisions determined these mandates are illegal, leading both cities to remove related guidance from their official websites after legal challenges from landlord advocacy groups.
Court Rulings Nullify Rent-Hike Relocation Mandates
The shift in policy follows a December 2025 California appellate court ruling that declared Pasadena’s relocation requirement illegal. In April, the California Supreme Court declined to review that decision, effectively cementing the appellate court’s stance. A separate legal challenge against the city of Los Angeles subsequently used the Pasadena case as a precedent to strike down similar local requirements, according to the provided reports.

Whitney Prout, who manages legal affairs for the California Apartment Association, stated the organization successfully argued that such requirements unfairly penalized landlords for exercising legal rights. “It was a consequence that was imposed for exercising a legal right,” Prout said. “That is effectively the same as limiting the right that exists. And you’re not allowed to do that.”
Impact on Tenant Displacement Protections
The invalidated rules were originally designed to “cushion the blow” for tenants in housing not covered by traditional rent control, such as single-family homes, condos, or newer apartment buildings. For example, Pasadena’s Measure H, passed by voters in 2022, required landlords to pay relocation assistance if they increased rents by more than 5% plus the city’s rent control cap—currently 7.25%.

Ryan Bell, a coordinator with Tenants Together and a member of the Pasadena Rental Housing Board, noted that the legal decisions leave renters to bear the full cost of finding new housing on their own. “The idea was to help cushion the blow of displacement. And now that doesn’t exist anymore,” Bell said.
Status of Remaining Tenant Protections
While relocation payments for “economic displacement” are no longer enforceable, landlords in Los Angeles and Pasadena are still required to pay relocation assistance for “no-fault” evictions, such as when a landlord intends to move a family member into a unit. These payments remain significant, ranging from $8,340 to $40,210 in Pasadena, depending on factors like unit size, tenant age, and disability status. In Los Angeles, those payments can range from one month’s rent up to $27,400.

Potential Future Developments in Other Cities
The status of similar policies in other jurisdictions may be subject to change. Santa Monica currently maintains a requirement for relocation payments in cases of high rent increases, and the policy remains listed in the city’s online documents. As cities across the region evaluate the impact of the appellate court’s precedent, officials in other municipalities may face pressure to either repeal or defend their existing ordinances. Whether Santa Monica or other cities will adjust their enforcement policies remains uncertain, as requests for comment on the matter have not yet received responses.