1. LA Issues COVID-19 Rent Freeze

CAA (California Apartment Association)continues to urge property owners across the state to abide by its Safe at Home Guidelines by committing to the following through May 31, 2020:

• Freeze rents on all residents & pledge to not issue any rent increases.
• Halt evictions on renters affected by COVID-19, absent extraordinary circumstances.
• Waive late fees for residents who pay rent after the rent due date because they have been affected by the COVID-19 pandemic and related government actions.
• Offer flexible payment plans for residents who cannot pay rent by the due date.
• Direct renters to available resources to assist with food, health, and financial assistance.
• Communicate with residents proactively that you are available to assist them and want to work with them to ensure they remain housed.

See full article here:https://caanet.org/l-a-mayor-freezes-all-rent-increases-for-rent-controlled-apartments/

1. Draw a diagram of the market for apartments in California in late Winter/early spring 2020.
2. How is the rent freeze illustrated in your market? Show this and explain the mechanism for the rent freeze and how it would work.
3. Does the rent freeze make the market more or less efficient? Explain thoroughly. What is likely to occur in the market if the rent freeze is put in place? Are there other mechanisms that would make this market more efficient? Explain.