Los Angeles permits landlords of rent-stabilized properties to apply to increase rent above the maximum permitted by rent stabilization if they are not receiving a just and reasonable return on their investment. The City’s method for determining whether landlords are receiving a fair return is deeply flawed. LACCLA recently brought both a facial and an as-applied challenge to the City’s “just and reasonable rent increase” (J&R) practice on behalf of a number of low-income tenants in Los Angeles living in rent-stabilized properties, whose landlords were able to convince the City to permit substantial rent increases through the J&R process.