Editor's note: This article has been updated to include data and comments from Community Corp requested by The Lookout that were provided after the article was published.

By Jorge Casuso

August 3, 2026 – Effective September 1, Santa Monica's largest non-profit affordable housing provider could raise the rents on more than 550 rent-controlled households by as much as 10 percent a year to offset rising maintenance and management costs.

A letter sent to Community Corporation households dated July 27 states that the rent hike will affect those who are currently paying below the Maximum Allowable Rent (MAR) for their unit set by Santa Monica's Rent Control Charter.

According to data provided by Community Corp, the housing provider operates 2,020 units in Santa Monica, of which 839 are rent-controlled. Of those, 554 households are currently paying rents below the MAR.

The letter from Interim Executive Director Durinda Abraham states that "the Rent Control Board permits landlords to increase rents by up to 10 percent annually for units rented below the MAR until the lawful maximim rent is reached."

Abraham notes that "the annual rent increases may continue in future years, subject to applicable laws and regulations, until your rent reaches the Maximum Allowable Rent for your unit."

The Rent Control Board adjusts the MAR every year by allowing landlords to implement a percentage of the County's cost-of-living increase, which amounted to 2.6 percent this year, with a cap of $70.

Some landlords, including Community Corp, haven't implemented the raise immediately, leaving the rent below the maximum allowed, a practice that was common during the coronavirus emergency.

"There have been periods when Community Corp elected not to implement allowable rent increases, including during the COVID-19 pandemic, in recognition of the extraordinary financial hardships many residents were experiencing," Abraham told The Lookout.

"As a result, many households remain below the Maximum Allowable Rent today."

Community Corp has an established rent increase reduction process for "households experiencing significant rent burden," Abraham said. "Households whose rent equals or exceeds 50 percent of their household income can request a reduction in the amount of a rent increase."

But she noted that "any reduction is considered within the context of ensuring the financial stability of the property so that Community Corp can continue to maintain and preserve affordable housing for current and future residents."

Abraham attributed the rent increase -- which is higher than what Communiy Corp has typically implemented -- to the rising costs of running non-profit housing.

"(O)ver the past several years, operating costs associated with maintaining and managing the property have increased substantially, particularly insurance, utilities, maintenance, repairs and other operating expenses," Abraham wrote.

"In order to continue providing quality housing and maintaining the property in a safe and well-maintained condition this adjustment is necessary."