RSO & Relocation December 2008. What Does Rent Stabilization Do? Controls rents (Vacancy decontrol)...
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Transcript of RSO & Relocation December 2008. What Does Rent Stabilization Do? Controls rents (Vacancy decontrol)...
RSO & Relocation
December 2008
What Does Rent Stabilization Do?
Controls rents (Vacancy decontrol)
Limits evictions (12 Legal Reasons) Requires relocation assistance for no-
fault evictions
Subject Properties Basic Rule
Housing accommodation rented or offered for rent
In the City of LA C of O on/before 10/1/78 2 or more on a lot
Inventory Over 129,000 properties Approximately 636,000 rental units Includes condos, co-ops, rooming houses,
mobile home parks*, hotels & motels
Not Covered
Single one-family dwelling on a lot Units built after October 1, 1978 Non-profit units approved by LAHD Luxury Units approved by RSO Hotel & motel rooms, occupied less than 30
days Rental units in converted commercial
buildings (adaptive re-use projects w/1st rental use after 10/1/78)
(Full list in LAMC 151.02 “Rental Units”)
When Rent $ is Not Controlled:
Properties not subject to the RSO
“Vacancy Decontrol” Units Voluntarily Vacated
Initial Rentals Following Certain evictions Non-payment Lease violation Compliance with City Attorney order Failure to relocate
Condos * Still subject to rent registration and eviction controls Pre-1996 tenants protected by full rent control
Allowable Rent Increases(2 Kinds)
1) LAHD Approval Not Required
Vacancy Decontrol – set to market upon re-rental after voluntary vacancy
Annual Automatic Rent Increase 3% - 8% per RSO 3% as of 7/1/2008 Additional 1% each for gas & electric if
owner-paid Increases for additional tenants
10% for each additional tenant Does not include 1st minor dependent child
Allowable Rent Increases2)Need City Approval
Individual Adjustments Capital Improvements – improvements or
replacements in rental units or common areas
Primary Renovation – major upgrades/renovation
Just & Reasonable – Review based on landlord’s NOI
Approved through administrative review process, appealable to a Hearing Officer
Eviction Grounds Tenant at fault
Non-payment of rent Lease violation (but not for
unilateral change in terms)
Nuisance (garden variety, drugs & gangs*)
Illegal purpose* Failure to renew lease Denial of reasonable
access Unapproved subtenant Failure to relocate per
Tenant Habitability Plan*
No-fault Owner/manager
occupancy* Ellis (demo &
withdrawal)* Government
order* HUD foreclosure*
* Landlord declaration required
RSO & Changes in Ownership Sale or foreclosure is not a legal
reason for eviction! Also not a basis for a rent increase. A change in ownership does not
change the terms of the tenancy under the RSO.
Lender who forecloses assumes the role of the landlord.
Eviction Requirements
Eviction notice Reason given to tenant 60 days as of January 1, 2007 for tenancies
of at least 1 year (no-fault evictions) Extended notice for Ellis
120 days minimum Seniors/disabled up to 1 year
Landlord declarations Filed with LAHD
Relocation Requirements – Landlord Responsibilities
Landlord must provide relocation assistance in following evictions: RSO units
Owner occupancy Ellis eviction Compliance with government order HUD foreclosure Permanent relocation in approved Tenant
Habitability Plan Condo Conversions Demolitions Mobilehome park closures
New Relocation Amounts
As of July 1, 2008:
Type of Tenant
< than 3 years
3 years or > < than 80% AMI
ELIGIBLE $7,000 $9,300 $9,300
QUALIFIED $15,300 $17,600 $17,600
Relocation Process For RSO units, file Landlord Declaration of
Intent to Evict File with LAHD Relocation Contractor
Services Application Pay required LAHD Relocation Contractor
fees Pay required administrative fees to LAHD Pay relocation to tenants
LAMC 151.09.G (RSO) / LAMC 47.06 (Condo-Conversions) / LAMC 47.07 (Demolitions)
Relocation Contractor LAHD refers property to Relocation
Contractor (Paragon Partners) Paragon meets with tenants Based upon Tenant Assessment Form
completed by tenant, Paragon completes Relocation Determination Form. Copy provided to tenant, owner, LAHD.
Paragon provides tenants with counseling, referrals, listings, additional services for disabled and elderly.
Payment of Relocation Fee Payment required within 15 days of
serving 120 day notice (RSO) or 60 day notice (non-RSO) on tenants.
Or within 15 days of tenant’s request for relocation after Planning’s approval of tentative tract / parcel map.
May deposit relocation payments in escrow accounts instead (RAC Regulation 960.00)
If tenant claims higher relocation based on low income status, owner may request LAHD hearing if disputes basis.
Failure to Pay Relocation
Tenant may file a complaint with LAHD. LAHD will investigate, issue determination, refer non-compliance to City Attorney for prosecution.
Failure to pay correct relocation amount is also a defense to an eviction in Superior Court.
LAHD will not clear demolition permits until owner proves payment of relocation.
Ellis Act RestrictionsNew Construction
After Ellis eviction, if demolished RSO building is replaced w/newly constructed rental units, the new units are subject to the RSO if rented within 5 years of the filing of the Ellis Landlord Declaration with LAHD (LAMC 151.28)
The initial rent = unrestricted.
Ellis Act Restrictions- New Construction Exemptions
Exemption for rental units constructed after Ellis eviction (demolition): Owner does a one for one replacement of
each demolished RSO units with an affordable housing unit, capped at 20% of total number of newly constructed rental units.
Building of 4 units or less was owner occupied for 3 years prior to its demolition.
Restrictions on Re-Rental of Ellised Units
If unit re-rented unit within 2 years of removal from rental market (tenant’s surrender of premises), owner is liable to tenant for actual and exemplary damages. City may also sue him.
If re-rented within 5 years of filing of Ellis Dec, must be rented at old rent plus allowable RSO increases & tenant has right of 1st refusal if tenant requested.
$ Relocation Assistance
No-fault Owner/manager
occupancy* Ellis (demo &
withdrawal)* Government
order* HUD foreclosure* Permanent
Relocation per approved THP
Payment within 15 days of notice
Direct payment Escrow account
7/1/08 – 6/30/09 $9,300 or $17,600
seniors, disabled, families
$7,000 - $9,300 everybody else (per household)