By: JMPC Team
Oct 03, 2025
Pasadena’s Measure H: What Strict Rent Control Means for Small Owners
Pasadena adopted Measure H in November 2022, creating rent stabilization and just-cause eviction rules administered by the Pasadena Rental Housing Board. If you own or plan to own small multifamily in SoCal, understanding how the 75%-of-CPI formula, coverage, and relocation requirements operate in Pasadena can help you set realistic budgets and timelines. (Informational only—not legal or financial advice.) ballotpedia.org
Estimated reading time: ~4-5 minutes.
What small owners are solving for in Pasadena
Many mom-and-pop owners run on thin margins. Under Measure H, annual rent increases for covered units are limited to 75% of CPI, announced yearly by the Rental Housing Board, and evictions generally require just cause. Coverage primarily includes multi-unit properties built before Feb 1, 1995 (with some exceptions), which can limit revenue growth relative to inflation and increase the importance of expense control. ballotpedia.org
Typical pain points
- Budget squeeze: When CPI is modest, the allowable increase can undershoot operating cost growth (insurance, utilities, labor). In 2025–26, the Board set the Annual General Adjustment at 25% (75% of 3.0% CPI). cityofpasadena.net
- Timing complexity: AGA cycles, notice periods, and eligibility checks add admin overhead. (Check coverage and calendars before acting.) net
- Turnover costs & rules: Just-cause standards and certain no-fault situations trigger relocation assistance; deposits must be returned in addition to relocation when applicable. cityofpasadena.net
Practical steps owners can take (checklist)
- Confirm coverage for each unit (pre-1995 multi-unit stock is typically covered). Keep a property-level “coverage sheet” on file. cityofpasadena.net
- Track the AGA each year and align lease anniversary timing, notices, and software settings to the effective window (e.g., Oct 1–Sep 30 for 2025–26 at 2.25%). cityofpasadena.net
- Model cash flow at 3 scenarios (low/mid/high CPI) using 75%-of-CPI caps for covered units; include insurance, taxes, utilities, maintenance, and reserves. ballotpedia.org
- Map just-cause pathways with templates and timelines; pre-brief your manager/attorney before issuing any notices. cityofpasadena.net
- Plan for relocation events (Ellis, owner move-in, substantial repairs, government order). Maintain a “relocation reserve” and a vendor list for habitability repairs. cityofpasadena.net
- Prioritize NOI levers that don’t rely on rent (e.g., laundry optimization, parking allocation, utility efficiency, vacancy loss reduction).
- Document habitability (work orders, photos, invoices). Some increases may be barred if habitability issues exist. pasadenatenantsunion.org
- Centralize records (rent histories, notices, receipts, Board communications) for potential audits or disputes. cityofpasadena.net
Pro Tip: Build a 12-month “policy calendar” that layers your lease expirations, AGA effective dates, inspection cycles, insurance renewals, and reserve contributions. This prevents missed windows and bunching of cash outflows. cityofpasadena.net
Local nuances owners should know
- How the cap is set: Section 1808 ties the Annual General Adjustment to 75% of CPI (LA–Riverside–OC region) measured through March; the Board announces by Sep 1, effective Oct 1. Example: CPI 3.0% → AGA 2.25% (2025–26). net
- Governance: The Pasadena Rental Housing Board (PRHB) implements the Charter amendment and issues regulations, agendas, and guidance; staying subscribed to notices is wise. net
- Relocation & just cause: Certain no-fault evictions (Ellis, owner move-in, necessary and substantial repairs, government order) trigger relocation; tenants may be entitled to both relocation and deposit refunds. net
- Exemptions context: Costa-Hawkins generally exempts post-1995 construction from local rent caps (but local just-cause rules and state protections may still interact—check specifics). cityofpasadena.net
Want a fast, no-nonsense review of your Pasadena units under Measure H? Contact JPMC for a compliance-aware operations plan tailored to small owners—scheduling, notices, and cash-flow levers—so you can manage confidently this year.
Deck / TL;DR
A plain-English look at how Pasadena’s rent stabilization rules work (75%-of-CPI increases, just-cause evictions, relocation) and the practical impacts on cash flow, maintenance planning, and compliance.
- Covered Pasadena units face rent increases capped at 75% of CPI, set annually by the PRHB (2.25% for 2025–26). net
- Expect tighter margins; lean on expense control, vacancy loss reduction, and non-rent NOI levers.
- Some no-fault evictions trigger relocation assistance; document habitability and follow process precisely. net
- Keep a compliance calendar for AGA windows, notices, and inspections; centralize records. net
FAQs
Q: Which units are covered by Measure H?
A: Generally multi-unit rentals built before Feb 1, 1995; verify specific exemptions with the city or counsel. cityofpasadena.net
Q: What’s the rent cap for the current AGA period?
A: For Oct 1, 2025–Sep 30, 2026, the AGA is 2.25% (75% of 3.0% CPI). Always confirm on the city site before issuing notices. cityofpasadena.net
Q: Do all evictions require just cause?
A: Yes, Measure H established just-cause standards; review allowed reasons and required notices before acting. ballotpedia.org
Q: When is relocation assistance required?
A: In specified no-fault cases (e.g., Ellis Act withdrawal, owner move-in, necessary repairs, government order). Amounts vary; see the city’s schedules. cityofpasadena.net
Q: Can I raise rent if there are habitability issues?
A: The city notes landlords may be barred from increases where habitability/health-safety issues exist. Fix issues first and document. pasadenatenantsunion.org
What to do next
— External Sources —
[1] Pasadena Rental Housing Board: AGA set at 2.25% for Oct 1, 2025–Sep 30, 2026; formula 75% of CPI. cityofpasadena.net
[2] Ballotpedia: Measure H created rent limits at 75% of CPI and just-cause requirements. ballotpedia.org
[3] City of Pasadena Rent Stabilization Dept: Coverage overview; landlord checklist; relocation/just-cause info. cityofpasadena.net