Can apartment do construction and increase price of unit after I signed but before I move in?

I am a college student and signed a lease for a 1 bd 1 ba room back in March for 8/2025-7/2026 (the entire unit is 6 bed 6 ba, it’s a off campus co living style apartment building that you rent by the room. I was told this room was recently renovated. Location: Los Angeles, CA).

Today, I received notice from the leasing office stating that: “the room you have signed your lease for will under-go construction, & be converted into a studio. This decision was made by the building owners just this week.” The rate for the studio conversion increased by $550 per month.

They said the decision was made just this week but I signed the lease and paid the deposit back in March. Are they legally allowed to do this and the studio conversion?