Maximum rent increase in CA?

[Andrew Faukner]

My sister is in a senior living facility, and they decided to raise the rent 10% next year. From my understanding, in California you can only raise the rent 5%, plus the cost of living index, which I believe is 2.4%, for a total of 7.4%. The 10% is the maximum, if the cost of living index is over 5%. 

Do I have this correct? Should the total be no more than 7.4%? Could it be different since this is a non-profit, senior living facility?

Thanks!