The ordinance was approved by the council at Monday night's meeting, with six members approving the ordinance and one voting against it.
One of the key factors is rent control.
Under the new rules, after a home is renovated to repair flood damage, landlords cannot raise the rent for up to six months.
The city says flooding forced about 16,000 people out of their homes.
The city of Merced said it will go into effect right away. If you or someone you know has experienced a rent increase after your home was repaired, click here for more information.