HOLLYWOOD, CA (FOX 11) - It's a breakthrough in L.A. County's housing crisis. The developer's of a future 20-story Hollywood apartment tower say they will voluntarily make all their units rent controlled.
"It's a victory for all of us," says Sejal Patel.
The two story green, pink and yellow apartment buildings on a busy Hollywood intersection could be demolished in the next year ....but staying firmly in place, is how much the 43 families will for rent if new buildings are approved
"Right now tenants pay between a thousand and 14 hundred for one bedroom," said Patel.
Compare that to $2,500 -the monthly cost of some newer one bedroom Hollywood apartments.
Champion Real Estate Company plans to build one skyrise as tall as the Capital Records building nearby, and a second smaller building, with a total of 210 units in the space.
So why are they self imposing rent control?
"You can do what's right for your business and do what's right for a community at the same time," said Jerry Neuman, the developer's lawyer.
Neuman says they might lose a little money giving 43 families the option to keep their homes and pay the same rent.
But the decision could help them get the project approved
"Does it help with addressing a natural opposition to a project? Absolutely...Do we want to stand up in front of city council and ask city council to help approve a development when we're pushing tenants out and not giving them options? That's not a good business decision to make," said Neuman.
Tenants believe developer Bob Champion, could have something else to gain if he follows through.
"It makes him a hero in this city, frankly," said Patel.
They hope to take their story to city hall, to encourage other developers to do the same.
We want to make sure we have LA policy that states rent control and puts more rent control in the market," said Patel.