File No. 15-0600-S34

GENERAL EXEMPTION, HOUSING COMMITTEE REPORT and ORDINANCE FIRST CONSIDERATION relative to amending the Rent Stabilization Ordinance (RSO) to establish a Tenant Buyout Notification Program for voluntary vacancies and mandating pre-buyout disclosure of tenant rights, along with other requirements.

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. FIND that the approval of the proposed Ordinance is exempt from the provisions of California Environmental Quality Act of 1970 (CEQA) under Article 18, Section 15060 (c) (2) of the State CEQA Guidelines and Article II, Section 2(m) of the City's environmental guidelines.

2. PRESENT and ADOPT the accompanying ORDINANCE dated October 28, 2016 amending the RSO, Article 1, Chapter XV of the Los Angeles Municipal Code, to establish a Tenant Buyout Notification Program for voluntary vacancies and mandating pre-buyout disclosure of tenant rights, along with other requirements, as amended to increase from 30 to 60 days the time allowed for landlords to file executed RSO buyout agreements with the Housing and Community Investment Department (HCIDLA).

Fiscal Impact Statement: None submitted by the City Attorney. Neither the City Administrative Officer nor the Chief Legislative Analyst has completed a financial analysis of this report.

Community Impact Statement: None submitted.

SUMMARY

Accompanying a report to Council dated October 28, 2016, the City Attorney presents an Ordinance amending the RSO to establish a Tenant Buyout Notification Program for voluntary vacancies and mandating pre-buyout disclosure of tenant rights. The City Attorney states that the Ordinance requires landlords to provide written disclosure of RSO rights, gives tenant cancellation rights, and requires landlords to file RSO disclosures and buyout agreements. Failure to comply with the provisions of the ordinance may lead to enforcement action under the RSO and a private right of action pursued by the tenant.

At its meeting held November 2, 2016, the Housing Committee discussed this matter with a representative of the HCIDLA. City Attorney staff was also present.

During the public comment period, speakers in favor of the proposed Ordinance stated landlords pressure and intimidate tenants to vacate their apartments. Often tenants do not know their rights. Creating a Tenant Buyout Notification Program will create a transparent eviction process and ensure the requirements of the RSO are upheld. It was stated that the problem of illegal evictions is getting worse as land speculators buy RSO-regulated apartments and force out the tenants in order to develop the property. Speakers representing apartment owners stated that making buyout agreements public violates contract law and privacy interests of property owners and tenants. Apartment owners are opposed to the proposed Ordinance's tenant buyout agreement filing requirement.

Housing Committee members recommended that Council approve the Ordinance, as amended to increase from 30 to 60 days the time allowed for landlords to file executed RSO buyout agreements with HCIDLA.

Respectfully Submitted,

HOUSING COMMITTEE

MEMBER VOTECEDILLO: YESKORETZ: YESHUIZAR: ABSENTPRICE: YESHARRIS-DAWSON: YES

NOT OFFICIAL UNTIL COUNCILACTS

File No. 14-0268-S4. 14-0268-S5.15-0600-S36.15-0728

HOUSING COMMITTEE REPORT relative to strengthening the enforcement of Ellis Act provisions and the preservation of Rent Stabilization Ordinance (RSO) units.

Recommendations for Council action:

1. REQUEST the City Attorney to work with the Housing and Community Investment Department (HCIDLA) and the Departments of Building and Safety and City Planning to draft an ordinance modifying the RSO to amend:

a. The Ellis provisions in the Los Angeles Municipal Code (LAMC) Sections 151.22 through 151.28 to address vacant units, re-rental of withdrawn units, annual property status reporting, demolished RSO units lacking a filed Ellis application, constraints filed with the County, withdrawal of residential hotel units, and relocation services, as described in the HCIDLA report to the Mayor dated April 15, 2016.

b. The requirements of an exemption from the RSO replacement provisions in the LAMC Section 151.28 to require the property owner to execute and record a regulatory agreement that guarantees:

i. A term of at least 55 years.

ii. Housing accommodations which are affordable for low- or very low-income households at or below 80 percent of the Area Median Income as established by the California Department of Housing and Community Development.

iii. The number of affordable housing units provided is at least equal to the number of RSO units withdrawn and replaced on a one-for-one basis or replaced by at least 20 percent of all newly constructed units, whichever is greater.

2. ADOPT a resolution in support of recommendations to amend the State Ellis Act torequire a one year notice to all displaced tenants, and notification of re-rental of vacatedunits for all displaced tenants.

Fiscal Impact Statement: The City Administrative Officer (CAO) reports that this action will not impact the General Fund. The above recommendations comply with City financial policies in that there is no additional cost to the City.

Community Impact Statement: Yes.For: Los Feliz Neighborhood Council (14-0268-S5)

amended- ^°**ywooc* Neighborhood Council (15-0728)

Downtown Los Angeles Neighborhood Council (14-0268-S4)

SUMMARY

In a report to the Mayor and Council dated October 27, 2016, the CAO states that HCIDLA requests authority to amend the LAMC to strengthen enforcement of the State Ellis Act

provisions, preserve RSO units, prevent displacement of tenants, and to conform the RSO requirements to State law. HCIDLA also recommends amending the requirements of an exemption from the RSO replacement provisions to extend affordability for low-income households, and to conform to the one-for-one replacement criteria under the density bonus requirements. Finally, HCIDLA also recommends that Council adopt resolutions to support state legislation to amend the Ellis Act to require a one year notice to all displaced tenants, and notification of re-rental of vacated units for all displaced tenants. The CAO recommends approval of HCIDLA's requests and recommendations.

The CAO notes that HCIDLA presented two options for the replacement of RSO units withdrawn from the market pursuant to Ellis: replacing lost units on a one-for-one basis, or requiring at least 20% of all newly constructed units to comply with the RSO.

At its meeting held November 2, 2016, the Housing Committee discussed this matter with representatives of the HCIDLA and the CAO. During the public comment period, speakers expressed support for HCIDLA's recommendations, and recommended that both replacement options be used, whichever is greater. It was stated that tenants of rental units are facing increased pressure by landlords to vacate their units. Landlords do not pay full eviction payouts to tenant who do not know their rights. Requests were made for the City to strengthen enforcement of RSO provisions.

The Housing Committee recommended that Council approve the proposed RSO Ellis provisions amendments, as amended to require that the number of affordable housing units provided is at least equal to the number of RSO units withdrawn and replaced on a one-for-one basis or replaced by at least 20% of all newly constructed units, whichever is greater; and, support related State legislation.

Respectfully Submitted,

HOUSING COMMITTEE

MEMBER VOTECEDILLO: YESKORETZ: YESHUIZAR: ABSENTPRICE: YESHARRIS-DAWSON: YES

NOT OFFICIAL UNTIL COUNCIL ACTS

HOUSING COMMITTEE REPORT relative to the selection of developers for affordable housing projects and other actions related to the disposition and development of 12 City-owned properties.

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. AUTHORIZE the General Manager, Los Angeles Housing and Community Investment Department (HCIDLA), or designee, to:

a. Select developers for the following 12 affordable housing developments, which will include permanent supportive housing for homeless, affordable multifamily, homeownership and other types of affordable housing:

File No. 12-0049-S5

Property5623-5633 Elmer Ave.

12568 N. San Fernando Blvd.

13574 W. Foothill Blvd.6527 Crenshaw Blvd.206 E. Washington Blvd.

5888-5910 & 5879-5887 Crocker Street

5215 & 5260 S. Figueroa St.

6901-6915 S. Main St.

2375 W. Washington Blvd.

4314 W. Adams Blvd.8431 Geyser Ave.1637 N. Wilcox Ave. & 6518-6522 Hollywood Blvd.

Proposed Lead DeveloperHabitat for Humanity SF/SCVNHS Neighborhood RedevelopmentCorporationClifford Beers HousingGTM HoldingsAMCAL Multi-HousingWest Angeles Community DevelopmentCorporationWest Angeles Community Development CorporationCoalition for Responsible Community Development Hollywood Community Housing Corporation Abode Communities Valley Village

Thomas Safran & Associates

b. Negotiate and execute Exclusive Negotiation Agreements with the selected developers, subject to the approval of the City Attorney as to form and legality.

c. Negotiate and execute Disposition and Development Agreements (DDA) with the selected developers, subject to the approval of the City Attorney as to form and legality.

d. In conjunction with the General Manager, Los Angeles Department of Transportation (LADOT), or designee, to negotiate and execute a Joint Development Agreement with the selected developer for the LADOT managed property located at 1637 North Wilcox Avenue and 6518-6522 Hollywood Boulevard, subject to the approval of the City Attorney as to form and legality.

e. Request and to collaborate with the City Attorney to prepare ordinances authorizing the sale of properties, if applicable, subject to Council approval.

f. Execute a DDA with the selected developer for the single-family property located at 8431 Geyser Avenue, subject to the approval of the City Attorney as to form and legality.

g. Carry out various actions related to the disposition and development of City-owned properties, in conjunction with the General Manager, LADOT, or designee, and the City Attorney.

h. Prepare Controller instructions for any necessary technical adjustments consistent with this action, subject to the approval of the City Administrative Officer (CAO); and, AUTHORIZE the Controller to implement these instructions.

2. INSTRUCT the General Manager, HCIDLA, or designee, to report to the Mayor and Council relative to efforts to obtain missing documentation for a former CRA/LA promissory note with Heritage Housing Partners totaling $509,593, and to collect an outstanding balance of $264,347.76 for the property located at 5623-5633 Elmer Avenue prior to any consideration of a write-off.

Fiscal Impact Statement: The CAO reports that this action will not impact the General Fund. If the HCIDLA is able to collect ail, or a portion of, Heritage Housing Partners' outstanding balance of $264,347.76 from an unsecured loan of $509,563 from the former Los Angeles Community Redevelopment Agency, the funds will be deposited into Fund No. 55J, Low and Moderate Income Housing Fund. As an Affected Taxing Entity under the Dissolution Statute, the City will receive into the General Fund a portion of the sales proceeds as property tax income upon the future sale of 3685 South Vermont Avenue. The HCIDLA does not know the amount of the property tax income at this time, and they are not included in the City's revenue projections. The above recommendations are in compliance with City financial policies in that there is no additional cost to the City, and no funding commitments are being made at this time. Potential project funding sources include State tax exempt bonds, State tax credits, private financing and the Affordable Housing Trust Fund, among others.

Community Impact Statement: None submitted.

SUMMARY

In a report to the Mayor and Council dated October 27, 2016, the CAO states that HCIDLA requests authority to take various actions to enter into agreements with affordable housing developers for the development of 13 City-owned properties. HCIDLA also requests authority to write-off an existing unsecured loan in the amount of $509,593 on a property located at 5623­5633 Elmer Avenue. The CAO recommends approval of HCIDLA's request to enter into agreements for the development of the properties. However, the CAO does not approve the write off at this time. Instead, the CAO recommends that Council instruct HICLDA to report on efforts to obtain missing documentation on a former CRA/LA loan with Heritage Housing Partners for $509,593, and to collect an outstanding balance of $264,347.76 for the Elmer Avenue property.

The CAO report goes on to discuss the HCIDLA Request for Proposals (RFP) and bid evaluation and appeals processes. Developers with experience in affordable housing development were sought to successfully carry out the entire development process from initial community engagement through project design, financing, and finished development for 13 City- owned properties. Ten of the sites were owned by the CRA/LA and another is currently owned by CRA/LA with an option for the City to purchase, one was acquired by HCIDLA, and one is a parking lot and building managed by LADOT.

At its meeting held November 2, 2016, the Housing Committee discussed this matter with representatives of the HCIDLA and the CAO. HCIDLA staff stated that these projects will generate 611 units of affordable housing. The land value of the proposed developments exceeds the amount of the City's Affordable Housing Trust Fund. Staff went on to discuss the RFP bid and evaluation processes. City staff and individuals from the private sector were used to evaluate the bids and appeals.

The Housing Committee recommended that Council authorize HICIDLA to enter into agreements, execute documents, and take the related actions listed above to proceed with the development of the City-owned sites contained in the HCIDLA report and as listed above, as recommended by the CAO, and as amended to remove from consideration for the time being the property located at 3685 South Vermont Avenue.

Respectfully Submitted,

HOUSING COMMITTEE

MEMBER VOTECEDILLO: YESKORETZ: YESHUIZAR: ABSENTPRICE: YESHARRIS-DAWSON: YES

NOT OFFICIAL UNTIL COUNCIL ACTS