HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division

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HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
HOUSING REPORT
CITY OF WEST HOLLYWOOD
Provided by the
Rent Stabilization and Housing Division

                                          Published November, 2017
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
Table of Contents                                                                                                           Introduction

                                                                                                                                The City of West Hollywood has demonstrated         feedback received are used to ensure the
                                                                                                                                its commitment to maintaining existing              City’s programs continue to address West
                                                                                                                                housing while at the same time developing           Hollywood’s housing needs.
                                                                                                                                new permanent affordable housing. Since
                                                                                                                                incorporation, the City has protected tenants       The Rent Stabilization and Housing Division
                                                                                                                                against large rent increases and unwarranted        administers the City's Housing Programs

                                                                                                                                                                                                                                         INTRODUCTION 2016
                                                                                                                                evictions, and set minimum property                 including the Rent Stabilization Ordinance
                                                                                                                                maintenance standards and other measures            (RSO), Inclusionary Housing Program, and

1                         2                       10
                                                                                                                                aimed at improving quality of residential life, a   Affordable Housing Trust Fund. The City
                                                                                                                                core value of the City.                             addresses housing needs for moderate, low,
INTRODUCTION              TRENDS AFFECTING        ACTIVITIES OF RENT                                                                                                                and very-low income earning individuals and
                          HOUSING                 STABILIZATION & HOUSING                                                       West Hollywood has six goals and 26                 households in the community by limiting rent
                                                                                                                                programs addressing housing needs. These            increases through the RSO, requiring affordable
                                                                                                                                goals and programs were developed through           housing in new housing developments 1, and by
                                                                                                                                an extensive and inclusive community process        collaborating with non-profit housing providers
                                                                                                                                in 2013 and are intended to meet housing            to create housing opportunities for those in                     1
                                                                                                                                needs for 2014 – 2021.                              greatest need. The Division also works with
                                                                                                                                                                                    other Divisions in the City to preserve tenancies
                                                                                                                                HOUSING GOALS FOR 2014 TO 2021                      for vulnerable households and support property
                                                                                                                                • Provide Affordable Rental Housing                 owners in maintaining their buildings.

16                        18                      20
                                                                                                                                • Maintain and Enhance the Quality of the
                                                                                                                                                                                    In 1996, the state limited the City’s ability to
                                                                                                                                  Housing Stock and Residential Neighborhoods
                                                                                                                                                                                    control rents through the Costa-Hawkins Act.
FUNDING                   RENT STABILIZATION      LEGAL SERVICES AND                                                            • Encourage a Diverse Housing Stock to              The Act allows landlords to increase rents to
AFFORDABLE HOUSING        COMMISSION              LEGISLATIVE AFFAIRS                                                             Address the Needs of All Socioeconomic            what they want when a unit becomes vacant.
                                                                                                                                  Segments of the Community                         Initial rents reported for rent stabilized one-
                                                                                                                                • Provide for Adequate Opportunities for New        bedroom apartments in West Hollywood have
                                                                            Cover and Table of Contents photos by Tony Coelho

                                                                                                                                  Construction of Housing                           increased 28 percent on average since 2013. 2
                                                                                                                                                                                    This has prevented community members
                                                                                                                                • Provide for a Governmental Environment
                                                                                                                                                                                    from being able to move to other housing in
                                                                                                                                  that Facilitates Housing Development and
                                                                                                                                                                                    West Hollywood when their housing needs
                                                                                                                                  Preservation
                                                                                                                                                                                    change. Rents have also increased in the areas
                                                                                                                                • Promote Equal Access to Housing for All           surrounding West Hollywood and all over
                                                                                                                                                                                    the Westside of Los Angeles in general. This

22
RENT STABILIZED HOUSING
                          26
                          LOOKING AHEAD TO 2017
                                                  29
                                                  REFERENCES (citations)
                                                                                                                                The City hosts two community conversations
                                                                                                                                on housing at the beginning of each year.
                                                                                                                                                                                    situation makes it extremely difficult for renters
                                                                                                                                                                                    whose housing needs change to find new
                                                                                                                                The events are open to all members of the           housing that fits their needs and remain in the
INVENTORY AND RENT
                                                                                                                                community and comments, suggestions, and            West Hollywood area.
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
Affordability is a Statewide Issue
                                                                                                   In the regional context, West Hollywood is a        increased vacancy rates in many regions. In
                                                                                                   small real estate market that contributes a small   Southern California, however the situation is

                                         TRENDS
                                                                                                   number of units to the overall housing stock        different. Features that are unique to California’s
                                                                                                   in the Los Angeles region. Therefore, the cost      housing market alter the supply-demand

                                                                                                                                                                                                              TRENDS AFFECTING HOUSING
                                                                                                   of both for-sale and rental housing in West         balance and keep the markets tight. One factor
                                                                                                   Hollywood is subject to regional pressures as       is that there is the constriction of overall housing
                                                                                                   well as those within the borders of the city. In    supply that comes from regulatory and zoning

                              AFFECTING HOUSING
                                                                                                   recent years, California has outpaced the nation    controls. A result of constraints on housing
                                                                                                   in job growth as well as economic output.5 As       production is that the Los Angeles region in 2015
                                                                                                   the economy prospers, home prices increase          had the lowest rate of housing production in the
                                                                                                   and housing affordability decreases. Builders       nation.6
                                                                                                   respond, but, in general, the incentives and
                                                                                                   constraints they face affect the mix of homes,      This shortage threatens to push many families
                                                                                                   leading to more higher-priced homes and an          into poverty. While the state’s overall poverty
                                                                                                   undersupply of lower-priced homes than needed       rate is 16%, when high housing costs are
                           California is experiencing a statewide housing crisis. The              regionally.                                         included in the calculation, that rate increases
                           state leads the nation in homelessness, poverty rates,                                                                      to 21%. 7 Affordability is especially challenging
2                                                                                                  Not enough new housing is built in California.      in Los Angeles County, where inflation                                   3
                           rental overcrowding, and populations experiencing                       Nationally, outside of California, production       adjusted housing prices have risen 27% in the
                           severe rent burden. It also has the largest shortage of                 of 5+ unit buildings has been at the highest        last 13 years while inflation adjusted wages
                           affordable rental homes.3 According to the California                   level since 1987. 5 This new supply has led to      have declined 7%.8
                           Housing Partnership Corporation, every county in
TRENDS AFFECTING HOUSING

                           California has an affordable housing shortfall.4 This is
                                                                                                                                              PRIOR TO 2015              ACTIONS IN 2015 TO 2017
                           due to supply-side issues such as the elimination of
                                                                                                                                              Berkeley                   Alameda (new)
                           redevelopment funds, and demand-side issues such as                                                                Beverly Hills              Mountain View (new)
                           an overall increase in the number of renters.                                                                      Campbell                   Richmond (new)
                                                                                                       NOTICEABLY, IN 2016                    East Palo Alto             Santa Rosa (new)
                                                                                                       SEVERAL COMMUNITIES                    Fremont                    Berkeley (strengthened)
                                                                                                       CONSIDERED                             Hayward                    East Palo Alto (strengthened)
                                                                                                                                              Los Angeles                Oakland (strengthened)
                                                                                                       IMPLEMENTATION OF
                                                                                                                                              Los Gatos                  San Jose (strengthened)
                                                                                                       OR STRENGTHENED                        Oakland                    Beverly Hills (strengthened)
                                                                                                       RENT STABILIZATION                     Palm Springs               Burlingame (failed)
                                                                                                       ORDINANCES.                            San Francisco              San Mateo (failed)
                                                                                                                                              San Jose
                                                                                                                                              Santa Monica
                                                                            photo by Tony Coelho
                                                                                                                                              Thousand Oaks
                                                                                                                                              West Hollywood
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
Trends in West Hollywood                                                                                                              Unemployment Rate, Los Angeles County
                                                                                                                                       14.0%
                           West Hollywood has prioritized rent stabilization     In 2016, rent charged for non-rent stabilized         12.0%
                           and affordable rental housing since incorporation     apartments in West Hollywood averaged $3,070          10.0%
                           33 years ago. However, the City cannot control        per unit. Market-rate apartments are units built      8.0%
                           regional and state trends driving housing market      after July 1, 1979, as units built before this date   6.0%

                                                                                                                                                                                                                                                 TRENDS AFFECTING HOUSING
                           dynamics. Despite a Rent Stabilization Ordinance      are governed by the RSO. On average, 2016             4.0%
                           and a variety of other policies, affordability        market-rate rents saw an increase of around           2.0%.
                           remains a challenge in West Hollywood. In a           1.9% over 2015 prices.                                0.0%
                                                                                                                                                1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
                           2016 Study, 75% of survey respondents stated
                           there is not enough housing within their price-       Market-rate rents tend to fluctuate due to
                           range. In addition, there is a lack of agreement      several variables including the number of local
                           about the type of multifamily development             vacancies and potential renters, as well as the                          Rate of Turnover, Rent Stabilized Units in West Hollywood
                           residents want in their neighborhoods.9               rental-price for nearby comparable units. In           3,500
                                                                                 addition, factors involving the southern California
                           The city’s housing affordability challenges           regional economy can have consequences. On             3,000
                           remain constant. Between 2000 and 2016, the           average, one-half of all households in the Los         2,500
                           City’s population grew by 0.4%, far slower than       Angeles region move every 5 years (US Census).
                                                                                                                                        2,000
                           the County rate of 7.6%.10 Since 1990, the            This rate of movement may or may not be
4                          proportion of West Hollywood renters verses           reflected in the vacancies in West Hollywood           1,500                                                                                                                  5
                           homeowners has remained constant at 78%               market-rate and rent-stabilized apartments.            1,000
                           renters and 22% owners. This is in contrast to        However, it is clear that the rate RSO
                           Los Angeles County, which has 45.5% renters           apartments turn over in West Hollywood mirrors          500
                           versus 54.5% owners.11                                the unemployment rate in Los Angeles County.              0
TRENDS AFFECTING HOUSING

                                                                                 In bad economic times, residents could struggle                  2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
                           In 2015, the California Department of Finance         to find work and become rent-challenged. When
                           estimated there were 23,012 households in             the economy is good, more residents are able to
                           West Hollywood. Approximately 40.5% of                afford rent and they remain in their current                           Average Increase in Rent Following a Vacancy West Hollywood
                           households in the city earn lower incomes, and        housing.
                                                                                                                                        $500
                           another 16.9% of households earn moderate                                                                                                                                                                      $468
                                                                                                                                        $450
                           income. The remaining 42.7% of households
                                                                                                                                                                                       $375                                        $406
                           earn above moderate income (also referred to                                                                 $400
                                                                                                                                                                                $335          $325
                           as Market-Rate Income).                                                                                      $350                                                                                $350
                                                                                                                                        $300     $265                    $265                                        $293
                                                                                                                                                        $228 $224 $234
                           Distribution of Household Income in West Hollywood                                                           $250                                                                  $229
                                                                                                                                        $200                                                          $188
                                                           Very Low             Low             Moderate       Above Moderate           $150
                                                                          (>50 – 80% AMI)   (>80 – 120% AMI)
                                                                                                                                                                                               $133    $129
                                                         (0-50% AMI)                                           (>120% AMI)
                                                                                                                                        $100
                            Percent of Households 12        24.8%              15.7%             16.9%         42.7%                     $50
                            Number of Households            5,707              3,613             3,889         9,826                      $0
                            (estimated)                                                                                                           2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
However, when the economy is doing well there           In West Hollywood, nearly 53% of renters are           As of November 7, 2016, 124           Rent Stabilized 2, 3, and 4 Unit Properties in West Hollywood
                                is also intensified housing pressure. Current           rent burdened, paying 30% or more of their             properties with two, three,           PROPERTY         Properties     Units
                                residents earning adequate incomes and new              income on housing costs.13 Rent burden falls
                                                                                                                                               and four units have been              TYPE
                                residents moving into the region seek housing           especially hard on West Hollywood residents
                                that they can afford. This creates increased            earning lower income14 ($48,525 or less, single
                                                                                                                                               removed from West                     2 units          415                830
                                demand and the supply of housing in West                person household). Cost burdened renters are           Hollywood’s rental market.            3 units          198                594

                                                                                                                                                                                                                                                                       TRENDS AFFECTING HOUSING 2015
                                Hollywood and the Los Angeles region has not            at a significant risk in the short term (potentially   This represents 14% of                4 units          175                700
                                kept pace with this demand. In this situation,          risking displacement in the face of rising costs       properties with two, three,
                                                                                                                                                                                     TOTAL            788            2124
                                landlords are able to increase the initial rent         related to housing and other daily essentials,         and four units, and 61% of
                                following a vacancy thereby creating an overall         food, medications) and in the long term (limiting
                                                                                                                                               all properties removed from
                                rise in housing cost.                                   their ability to build wealth, and ladders to
                                                                                        home ownership).                                       the rental market using the
                                Average increase in rent received by landlords                                                                 Ellis Act in West Hollywood.
                                following a vacancy in RSO units in West                With 78% of residents renting their housing            Eighty-nine of the two,
                                Hollywood is presented in the chart on page 5.          and 75% of rental housing being rent stabilized,       three, and four unit                  Status of Rent Stabilized 2, 3, and 4 Unit Properties
                                When the economy is doing well, there is                the City’s Rent Stabilization Ordinance is a                                                 Previously Removed from the Rental Market
                                                                                                                                               properties removed remain
                                higher demand for housing and housing costs             primary means of ensuring rents rise at a level
                                rise following a vacancy at a higher rate than in       tenants are able to pay, while ensuring owners         off the rental market                 PROPERTY         Properties    Off Market/ Converted to            Demolished/
                                                                                                                                               unchanged or have been                TYPE             Removed       Unchanged Single-Family             Site Rebuilt
                                economic downturns. This prevents residents             a return on their investment. However, rent
                                whose housing needs change, but who can                 stabilization can only limit rent increases as         converted to single-family            Duplex            88           41                   28             19
                                otherwise pay their rent and are earning a              long as a tenant remains in his or her unit.           homes; 35 have been                   Triplex           19            6                    4              9
6                               decent salary from moving to housing that
                                                                                                                                                                                                                                                                                          7
                                                                                                                                               demolished and rebuilt.               Fourplex          17            9                    1              7
                                better fits their needs.
                                                                                                                                                                                     TOTAL            124           56                   33             35

                                Removal of Rental Units from the Market
TRENDS AFFECTING HOUSING 2015

                                Under the State’s Ellis Act, property owners            A review of City records indicated the most
                                have the right to remove rental buildings from          common property types removed in West
                                the rental market. From January 1, 1986 to              Hollywood are properties with two, three, and
                                                                                                                                               The table (right) highlights          Properties Removed from the Rental Market Using the Ellis
                                December 31, 2016, 203 rent-stabilized                  four units. These properties either were               the status of properties Ellised      Act (*) and Current Uses as of October 12, 2016
                                properties with 764 units were removed from             converted to single-family homes or remained           between 1986, when the Ellis
                                the West Hollywood Rental Market. In 2016,              unchanged and off-market.15 Approximately 12                                                 PROPERTY               Properties         Units          Current   Proposed
                                                                                                                                               Act came into effect, and             STATUS                 Ellised            Ellised        Units     Units
                                eight buildings with 29 apartments were                 percent of rent-stabilized properties in West          October 12, 2016
                                removed from the rental market.                         Hollywood, 788 properties with 2,124 units, have                                             Change of Use            16                126            128       22
                                                                                        two, three, and four units (duplex, triplex, and       The “Change of Use” category
                                                                                                                                                                                     Converted to SFR        37                 96             45            0
                                                                                                                                               includes properties converted to
                                                                                        quadruplex, respectively).                             uses such as bed and breakfast        New Construction        45                 187           391            0
                                                                                                                                               lodging, non-profit affordable
                                 STATUS (November 7, 2016)                                              PERCENT            PROPERTIES          housing, and commercial or hotel      New Construction         21                94             80       298
                                                                                                                                               uses. The “Proposed Units” category   Pending
                                 Off Market or converted to a single family home                         51.7%                   105           includes projects currently under
                                                                                                                                               construction, approved for            Off Market              68                186            186            0
                                 New and pending condominiums                                            31.0%                   63                                                  (No Changes to
                                                                                                                                               construction, and currently under
                                 New and pending apartments                                                1.5%                    3           review by the City.                   Property)
                                 Returned to market                                                       7.9%                    16                                                 Returned to              16                75             72            0
                                                                                                                                                                                     Market
                                 Change of Use (commercial, bed & breakfast, affordable housing)          7.9%                    16
                                                                                                                                                                                     TOTAL                  203                764            902       320
                                                                                           Total         100%                   203
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
Sneak Peek at 2017                                    Legislative Advocacy to
                           In the 2017 legislative session, City staff and the
                                                                                 Reform the Ellis Act
                           City's lobbyist in Sacramento, Helyne Meshar &
                           Associates, collaborated with Assemblymember          As a team, Rent Stabilization and

                                                                                                                                            TRENDS AFFECTING HOUSING 2015
                           Richard Bloom on Ellis Act reform. AB 982 would       Housing, Legal Services and
                           have extended the Ellis Act 1 year notice to          Legislative Affairs, and the City’s
                           vacate, currently provided to senior and disabled     legislative advocate in Sacramento
                           tenants, to all tenants living in the building.
                                                                                 actively encourage the California
                           Currently, the Ellis Act allows all other tenants
                           120 days. The bill was introduced in the              legislature to reform the Ellis Act and
                           Assembly on February 16, 2017. The California         support tenant’s rights legislation.
                           Apartment Association (CAA) objected to
                           aspects in the bill and proposed amendments           Reforming the State Ellis Act requires
                           that were not acceptable to Assemblymember
                                                                                 action by the California legislature.
                           Bloom or the City of West Hollywood.
                           Assemblymember Bloom opted to hold the bill           Since its adoption in 1986, the Ellis
                           until the 2017-18 session so he could work on         Act has been unchanged. Ellis Act
                           amendments with the City, other allies, and CAA.      reform has been a priority of the City
                           The bill could be heard in the Housing and            Council for many legislative cycles;
8                          Community Development Committee as early as                                                                                         9
                                                                                 however, recent proposals to amend
                           January, 2018.
                                                                                 the Act have failed in part because of
                                                                                 strong opposition from real estate
                                                                                 and property owner interest groups.
TRENDS AFFECTING HOUSING

                                                                                 On January 23, 2017, the City Council
                                                                                 directed staff to increase lobbying
                                                                                 efforts and return to City Council
                                                                                 with a request for increased funds if
                                                                                 necessary. Amendments the City will
                                                                                 lobby for include extending the Ellis
                                                                                 Act relocation period to one year for
                           Sacramento, California Capitol building dome detail
                                                                                 all tenants on a property when at
                           On March 9, 2017, the City hosted a community         least one household qualifies.16
                           forum focused on the impacts of the State’s Ellis
                           Act on West Hollywood. The forum was free and
                           all members of the community were invited. A
                           panel of experts including Assemblymember
                           Richard Bloom and Senator Ben Allen were in

                                                                                                                           photo by Tony Coelho
                           attendance to hear concerns and issues from
                           the community.
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
ACTIVITIES RENT STABILIZATION AND HOUSING DIVISION
                                                                                                                               A MAJOR PART OF THE                 in the City Hall lobby and on       HEARINGS ON MAXIMUM
                                                                                                                               RENT STABILIZATION AND              the City’s website. It contains     ALLOWABLE RENT AND
                                                                                                                               HOUSING DIVISION’S                  information for prospective         RENT DECREASES
                                                                                                                                                                   tenants, current tenants,           Hearings are held if a tenant
                                                                                                                               ROLE IS PROVIDING
                                                                                                                                                                   and developers about                or landlord wants to ascertain
                                                                                                                               INFORMATION TO

                                                              ACTIVITIES
                                                                                                                                                                   affordable housing. Handouts        the legal maximum allowable
                                                                                                                               THE PUBLIC.                         contain information about           rent (MAR) for a unit or if a
                                                                                                                               During calendar year 2016,          inclusionary and affordable         tenant believes they have
                                                                                                                               staff members spoke with            housing programs, referral          had a substantial reduction
                                                                                                                               13,696 individuals, of whom         information for Section 8           in housing services and are
                                                                                                                               7,877 were tenants, 5,012           vouchers, housing rights,           due a decrease in rent. The
                                                     RENT STABILIZATION AND                                                    were landlords, and 807 were
                                                                                                                               brokers, lawyers, or other
                                                                                                                               interested parties.
                                                                                                                                                                   and information from the
                                                                                                                                                                   Department of Consumer
                                                                                                                                                                   Affairs on how to become
                                                                                                                                                                                                       Rent Stabilization and Housing
                                                                                                                                                                                                       Division coordinated the

                                                       HOUSING DIVISION
                                                                                                                                                                                                       hearings process with the
                                                                                                                                                                   tenant ready (how to improve        Legal Services Division, which
                                                                                                                                   In Calendar Year 2016           one’s credit and rental history).   held 87 hearings in 2016.
                                                                                                                                             807
                                                                                                                                             BROKERS,              HOME SECURE                         GUIDING NEW PROPERTY
                                                                                                                                             LAWYERS               The City offers low-income
                                                                                                                                 5,012       AND OTHER   7,877                                         OWNERS, TENANTS AND
                                                     The Rent Stabilization Ordinance protects tenants from                      LANDLORDS   6%          TENANTS   seniors and disabled residents
                                                                                                                                 36%                     58%       safety and security devices         PROSPECTIVE MULTI-UNIT
                                                     unlawful eviction and sets a limit on annual rent increases.                                                  such as no-slip strips and          HOUSING BUYERS
10                                                                                                                                                                                                                                                            11
                                                     The City continues to administer the ordinance and to help                                                    grab bars in the bathroom,          All new owners and new
                                                                                                                                                                   and security deadbolts and          tenants in rent-stabilized
                                                     tenants know and exercise their rights.                                                                       window locks on doors and           apartments receive an
                                                                                                                                                                   windows free of cost.               information packet introducing
                                                                                                                                   Constituent Contacts                                                them to West Hollywood’s Rent
                                                     The Inclusionary Housing Program requires 20 percent
ACTIVITIES RENT STABILIZATION AND HOUSING DIVISION

                                                                                                                                      Totaled 13,696                                                   Stabilization program. The
                                                                                                                                                                   OFFERING RSO BUILDING
                                                     of new residential development to be deed-restricted for                                                                                          packet contains a fact sheet,
                                                                                                                                                                   BLOCKS SEMINARS                     a guide to Rent Stabilization,
                                                     lower and moderate households or, in certain instances,                   RESIDENTIAL RENTAL                  The City’s ongoing efforts          a voter registration form and
                                                     the developer may pay a fee. Fees are collected in the City’s             REFERRALS PROVIDED                  to communicate with and             a welcome letter. In 2016, the
                                                                                                                                                                   inform the members of the           Division mailed welcome
                                                     Affordable Housing Trust Fund and used to partner with                    FREE-OF-COST
                                                                                                                                                                   community resulted in 13
                                                                                                                               The Division maintains a list of                                        packets to 137 new landlords
                                                     non-profit housing providers to construct new, 100 percent                available rental units in West
                                                                                                                                                                   workshops that were free-           and 1,715 new tenants.
                                                                                                                                                                   of-cost for the participants.
                                                     affordable apartment buildings.                                           Hollywood. Updated weekly,
                                                                                                                                                                   The popular Building Blocks
                                                                                                                               it is free-of-cost for owners                                           RENT REGISTRATION FEES
                                                                                                                                                                   program, offered in both
                                                                                                                               to post their rental listings                                           Fees collected from rent-
                                                                                                                                                                   English and Russian, helps to
                                                                                                                               and free-of-cost for potential                                          stabilized units fund the Rent
                                                                                                                                                                   educate tenants, landlords,
                                                                                                                               renters to use.                                                         Stabilization program. In 2016,
                                                                                                                                                                   and other community
                                                                                                                                                                                                       the 16,832 rent stabilized units
                                                                                                                                                                   members. Topics include
                                                                                                        photo by Tony Coelho   MAINTAINING THE CITY’S                                                  generated $1,887,424 in rent
                                                                                                                                                                   Emergency Preparedness for
                                                                                                                               HOUSING INFORMATION                                                     registration fees. For units
                                                                                                                                                                   Apartment Buildings, Tenants
                                                                                                                                                                                                       rented under Section 8, only
                                                                                                                               CENTER                              101 Workshop, Pets 101, and
                                                                                                                                                                                                       the landlord portion of the fee
                                                                                                                               The Division’s housing              Reasonable Accommodations
                                                                                                                                                                                                       is collected, which is $60.
                                                                                                                               information center is located       for Disabled Tenants.
                                                                                                                                                                                                       Owner-occupied units do
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
ACTIVITIES RENT STABILIZATION AND HOUSING DIVISION
                                                     not pay the registration fee          parties and witnesses to the      TRACKING RENTAL STATUS              ENERGY EFFICIENCY AND              innovative housing financing        through the City's website,
                                                     and in 2016, there were 1,315         alleged harassment. Because       TO MONITOR NEW RENTS                WATER CONSERVATION                 aimed at identifying new funding    press releases, and at the
                                                     units with this exemption. In         tenant harassment is a criminal   AFTER EACH VACANCY                  In 2016, the City provided         sources and approaches to           first City Council meeting in
                                                     2017, the registration fee will       offense, no charges will be       The Rent Stabilization Division     information and links on           increasing housing affordability,   January. Invitations are sent
                                                     increase from $120 to $144            filed unless the Legal Services   maintains digital records of        energy efficiency and water        and an analysis of City records     by electronic mail to all City
                                                     per unit per year. This will be                                         residential properties. Each        conservation on its website,       to ensure units are being           Commissioners and Board
                                                     the first increase since 1993                                           time the owner rents a unit         with outreach to RSO property      properly registered.                Members, and community
                                                     and is lower than the AGA for                                           they must file a Re-Registration    owners on HERO financing for                                           members who signed up for
                                                     the same time-period (if the                                            of New Tenancies in a Unit          energy efficiency upgrades.         ENGAGING THE                        updates when they participated
                                                     AGA was applied the annual                                              form, which includes the move-                                         COMMUNITY                           in the 2012/13 General Plan
                                                     registration fee would be $180).                                        in date, the initial rent paid,     CONDUCTING SPECIAL                 Annually the City hosts two         and Housing Element Update.
                                                     Landlords will be able to pass                                          and housing services provided                                          community conversations on          The winter rent stabilization
                                                                                                                                                                 STUDIES AND INITIATIVES
                                                     through to tenants one-half                                             (parking, storage, laundry,                                            housing to create a forum to        newsletter, mailed to all rent
                                                     of the increase, increasing                                             etc.). Both the landlord and the    ▶ Reinvestment in Aging            discuss pressing issues such        stabilized addresses and
                                                     the tenant’s share of the                                               tenant must sign the form. After    Apartment Buildings                as increased rents, tenant          all rent stabilized landlords
                                                     registration fee from $5 a                                              verification and processing of      Almost 91 percent of housing       displacement, affordable             (about 17,000 addresses,
                                                     month to $6.                                                            the form by the City, the parties   stock in the city is at least 30   housing requirements in new         1,900 landlords), includes the
                                                                                                                             receive a letter of confirmation.   years old, a time-threshold        developments, and other             announcement. Displacement
                                                     TENANT REGISTRATION                                                     This information is stored in the   when housing generally shows       housing related topics. These       caused by the Ellis Act is
                                                     FEE REBATES                                                             City’s database as a record of      signs of aging and requires        meetings are free-of-cost           a pressing concern, as is
                                                     The RSO allows landlords                                                the move-in rent and housing        major upgrades to the physical     to the participants and all         addressing homelessness.
                                                     to pass through to tenants                                              services provided for the           structure and systems. In 2016,    members of the community            Participants express a desire
12                                                                                                                                                               the Division completed a study                                         for more housing that is                   13
                                                     one-half of the registration                                            tenancy. The City requires all                                         are encouraged to attend. The
                                                     fee per unit in $5 increments                                           new tenancies to be registered.     to identify incentives the City    conversations are held at the       inclusionary and non-profit
                                                     per month. Very low-income                                              If a tenant is not registered,      could provide to encourage         beginning of the calendar year,     owned affordable housing,
                                                     tenants who are over 62               Division and City Prosecutor      the landlord cannot apply rent      landlords to reinvest in aging     one at the West Hollywood           incentives for property owners
                                                     years of age or disabled may          are satisfied that all of the     increases. In 2016, the Division    rent-stabilized apartment          Park Community Room and             to maintain existing apartment
ACTIVITIES RENT STABILIZATION AND HOUSING DIVISION

                                                     obtain an annual rebate if they       elements of the offense can be    received and processed 1,715        buildings.                         the other at Plummer Park.          buildings, and programs to
                                                     paid registration fees to their       proven beyond a reasonable        re-registrations.                                                      The events are announced            help seniors age in place.
                                                     landlord in the previous year. A      doubt. While few complaints                                           ▶ Seismic Retrofit Program
                                                     tenant has up to three years to       are ultimately prosecuted, the                                        Recognizing the need to
                                                                                                                             PARTICIPATING IN THE
                                                     file for this rebate. In 2016 there   investigation frequently alerts                                       ensure apartments will
                                                                                           tenants and landlords to their    RENT CONSORTIUM                     survive a major earthquake,
                                                     were 365 tenants granted                                                Each year, City Staff meet
                                                     registration fee rebates.             rights and responsibilities                                           the City initiated a study of
                                                                                           under the RSO and helps bring     with staff from Berkeley,           seismic retrofitting in West
                                                                                           parties into compliance. In       Oakland, San Francisco,             Hollywood in 2015. This study
                                                     TENANT HARASSMENT                                                       Santa Monica, Los Angeles,
                                                                                           2016, the Division received 11                                        is currently underway and the
                                                     The City of West Hollywood                                              and East Palo Alto. In 2016,
                                                                                           tenant harassment complaints.                                         City anticipates the release
                                                     investigates complaints of                                              topics discussed included           of a draft ordinance requiring
                                                     tenant harassment. A tenant                                             current court cases
                                                                                           The Division also collaborates                                        property owners to upgrade
                                                     may initiate an investigation by                                        affecting rent stabilization,
                                                                                           with other City Divisions,                                            apartment buildings for
                                                     filing a harassment complaint                                           collaboration on new
                                                                                           including Legal Services,                                             earthquake safety in 2017.
                                                     at the Rent Stabilization public                                        legislation and responding
                                                                                           Building and Safety, and Code
                                                     counter. Once received, a                                               to proposed legislation, and
                                                                                           Compliance to respond to                                              ▶ Research into Affordable
                                                     tenant harassment complaint                                             recent changes or issues
                                                                                           situations, such as high-impact                                       Housing Strategies
                                                     is assigned to staff who review                                         affecting each jurisdiction’s
                                                                                           renovations, that sometimes                                           Special studies and research
                                                     the allegations made in the                                             RSO.
                                                                                           could lead to incidents of                                            in 2016 included a study of
                                                     complaint, and may contact
                                                                                           tenant harassment.
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
ACTIVITIES RENT STABILIZATION AND HOUSING DIVISION
                                                                                 PROVIDING NEW HOUSING OPPORTUNITIES                                                    AFFORDABLE HOUSING                In recent years the amount of                   $47,386 annually. Additionally,
                                                                                                                                                                         PRODUCTION IN 2016               affordable housing produced                     16.9% or 3,889 households
                                                                                                                                                                                                          through the Inclusionary Housing                qualify as moderate income,
                                                                                                                                                                       In 2016, 77 new affordable         Program has increased from 108                  earning less than $59,232.
                                                     Inclusionary Housing                                                                                                                                 units in 2013 to 322 units by the
                                                     The City of West Hollywood                                                       Increase               Total    units were produced through
                                                                                                                                                                                                          end of 2016. An additional 99                   Most new residential
                                                     administers an Inclusionary                                                                             Units       the City’s inclusionary          affordable units are anticipated in             development in West
                                                     Housing Program in which                                                                                               housing program.              2017 and 2018.                                  Hollywood is out of reach
                                                     developers are required to             Recent Increase      1986-2013                   108                108                                                                                       to low and moderate wage
                                                     make a percentage of newly             in Number of                                                                                                  Most of this new housing                        households. 54% of new
                                                                                                                 2014-2016                   214               322
                                                     constructed housing units              Inclusionary                                                                    Housing Need in               has been located along West                     residential development in
                                                     available to low and                   Units                2017-18                     99                 421         West Hollywood 17             Hollywood’s commercial corridors                2016 was market-rate 2-10
                                                     moderate-income                                                                                                                                      and not within existing residential             unit condominium buildings
                                                     households. In an effort to                                                                                                                          neighborhoods. Importantly, the                 providing the City’s Affordable
                                                                                                                                                                            Percent of Households         new affordable housing units                    Housing In-Lieu Fee instead of
                                                     generate a mix of income
                                                     levels within residential             Nonprofit Developers &                 California Department of                                                produced through Inclusionary                   affordable units onsite. When
                                                                                                                                                                        Very Low         Above Moderate
                                                     areas, builders must                  Affordable Housing                     Housing and Community                                    AMI >120%      Housing have made it possible                   affordable units are included
                                                                                                                                  Development’s (HCD)                  AMI 0-50%
                                                     locate affordable units (or           In 2016, construction began                                                                                    for the City to offer permanent                 in new buildings, those units
                                                     inclusionary units) throughout        on a new 22-unit affordable            Predevelopment Loan Program,
                                                                                           housing project, which will            as well as the County of
                                                     the building. In addition,
                                                                                           serve a very low-income                Los Angeles Community                    24.8%
                                                     access must be available
                                                                                           population including persons           Development Commission and
14                                                   to all building amenities,                                                                                                               42.7%                                                                                                      15
                                                                                           living with HIV/AIDS, mental           HCD’s Infill Infrastructure Grant
                                                     regardless of renter economic                                                Program, plus 21 project-based           15.7%
                                                                                           health challenges, and
                                                     status and/or income level.                                                  rental vouchers. In addition, the
                                                                                           transitional age youth
                                                     The number of inclusionary            emerging from foster care              City committed $2 million in                      16.9%
                                                     housing units in West                 and at risk of homelessness.           affordable housing trust funds
                                                     Hollywood will increase in                                                   as a local match to leverage             Low
ACTIVITIES RENT STABILIZATION AND HOUSING DIVISION

                                                                                           Financing for the project will                                                                 Moderate AMI
                                                     the coming years, primarily                                                  over $7.2 million from the          AMI >50 – 80%
                                                                                           come from the Los Angeles                                                                       >80 – 120%     Movietown Senior Housing (construction), photo courtesy of Hunter Kerhart
                                                     in mixed-use buildings in             County Housing Innovation              California Tax Credit Allocation
                                                     the commercial areas along            Fund (LACHIF) and the                  Committee.                                                              affordability to lower and                      become available when the
                                                     Santa Monica Boulevard.                                                                                          Estimated Number of Households
                                                                                                                                                                                                          moderate income households                      building is completed. When
                                                                                                                                                                                                          facing displacement from West                   the In-Lieu fee is paid new
                                                                                                                                                                                        Above Moderate    Hollywood due to the Ellis Act.                 affordability is postponed until
                                                                                       Affordable Housing in West Hollywood                                             Very Low
                                                                                                                                                                       AMI 0-50%          AMI >120%                                                       the fee can be utilized.
                                                                                                                                                                                                          Although housing production in
                                                                                Approved to be Built     Under Construction           Existing                                                            West Hollywood has performed                    Because of high demand for
                                                      800                                                                                                                                                 better than anticipated in the                  housing in West Hollywood,
                                                                                                                                                                            5,707                         state’s current planning cycle                  non-profit housing providers
                                                                                                                                                 710
                                                      600                                                                                                                                      9,826      for housing (State Regional                     struggle to compete with
                                                                                                                                                                                                          Housing Needs Assessment, or                    developers. Therefore, meeting
                                                              22                     75                                                                                    3,613                          RHNA 2013-202118), affordability                West Hollywood’s needs for
                                                      400                                                                                                                                                 is still an issue. The California               housing requires an ongoing
                                                             437                     24                366
                                                                                    322                                                                                               3,889               Department of Finance                           multi-faceted approach of rent
                                                      200                                                                                                                                                 estimates 40.5% or 9,320                        stabilization, inclusionary housing
                                                                                                                            150                                            Low
                                                                                                                                                                                          Moderate AMI
                                                                                                                                                                                                          households in West Hollywood                    units, non-profit affordable
                                                        0                                                                                                             AMI >50 – 80%                       are Very Low or Low income,                     housing, and advocating for state
                                                                                                                                                                                           >80 – 120%
                                                                   Affordable         Inclusionary      HACoLA/HUD            1222 Fairfax         Rent Stabilized                                        earning less than $29,616 or                    and federal funding.
                                                                   Non-Profit           Housing                                Section 8             Section 8
HOUSING REPORT CITY OF WEST HOLLYWOOD - Provided by the Rent Stabilization and Housing Division
AFFORDABLE HOUSING                    Hollywood. To qualify for these         the supply by approximately two

                                                                                                                                                                                                                                      FUNDING AFFORDABLE HOUSING DEVELOPMENT
                                                                                                                   FUNDING –                             funds, each allocation approved         to one. The state has developed
                                                                                                                   STATE OF CALIFORNIA                   by the City Council, a project          a competitive scoring process
                                                                                                                   COLLABORATIVE REPORT                  must have at least 60% of units         to determine which applicants
                                                                                                                   The State’s four housing              affordable for low and moderate-        receive the credits. The scoring
                                                                                                                   agencies, the California Tax          income households, with 20% of          includes points for projects that
                                                                                                                   Credit Allocation Committee           those units reserved for low-income     serve lower income tenants,
                                                                                                                   (TCAC), the California Debt Limit     households. The Affordable              leverage public and private funds,

                                                          FUNDING                                                  Allocation Committee (CDLAC),         Housing Trust Fund continues            include high-energy efficiency
                                                                                                                   the Department of Housing             to enable new housing projects          features, and for developers who
                                                                                                                   and Community Development             including the Blue Hibiscus             have previously received the

                                              AFFORDABLE
                                                                                                                   (HCD), and the California             project, a 22-unit development          credits, among other factors. The
                                                                                                                   Housing Finance Agency                that will serve a mixed very-low        California Tax Credit Allocation
                                                                                                                   (CalFHA), have collaborated           income population including             Committee (CTCAC) administers
                                                                                                                   to collect and analyze data on        persons living with HIV/AIDS,           the federal and state Low-Income
                                                                                                                   the costs of building affordable      mental illness, and transitional        Housing Tax Credit Programs.

                                               HOUSING
                                                                                                                   housing in the state.19 The report    age youth emerging from foster
                                                                                                                   suggests that several factors         care and at risk of homelessness.       Developments in West
                                                                                                                   including land cost, community                                                Hollywood that have been
                                                                                                                   opposition, building quality and      LOW-INCOME HOUSING                      recently built using tax credits
                                                                                                                   durability, and economies of          TAX CREDITS                             include the Courtyard at La Brea
                                                                                                                   scale, affect the costs of building   The Low Income Housing Tax              and the inclusionary housing

                                                  DEVELOPMENT
16                                                                                                                 affordable housing as well as         Credits (LIHTC) Program is a            units in the Huxley, the Dylan                17
                                                                                                                   creating challenges to building       federal program, which provides         and Movie Town Seniors.
                                                                                                                   affordable housing.                   tax credits to developers of
                                                                                                                                                         affordable rental housing. The tax      ADDITIONAL FUNDING
                                         As an ongoing strategic goal of the City of West Hollywood,               Currently, it is necessary to         credits are for the first 10 years of   SOURCES
                                                                                                                   leverage several sources              a minimum 30-year compliance            Similar to the LIHTC Program,
                                         the Rent Stabilization and Housing Division works with                                                          period during which rent and            HOME Funds and Section 8
FUNDING AFFORDABLE HOUSING DEVELOPMENT

                                                                                                                   of funding in order to help
                                         private and nonprofit developers to develop, preserve,                    address the huge demand for           income restrictions apply.              Project-Based Vouchers are HUD
                                                                                                                   housing and the high costs            The LIHTC Program, although             (federal) programs administered
                                         and rehabilitate affordable housing.                                      of development. The sections          established in the U.S. Internal        locally through the Community
                                                                                                                   below discuss some of these           Revenue Code (IRC), is structured       Development Commission of the
                                                                                                                   possible funding sources.             such that state-allocating              County of Los Angeles and the
                                                                                                                   Affordable housing developed          agencies administer most aspects        Housing Authority of the County
                                                                                                                   in West Hollywood has utilized a      of the program, including income        of Los Angeles. These additional
                                                                                                                   combination of these and other        and rent compliance, with the           funding sources are available
                                                                                                                   funding sources.                      Internal Revenue Service (IRS)          through competitive application
                                                                                                                                                         providing oversight and guidance.       processes. Developers achieve
                                                                                                                   CITY OF WEST HOLLYWOOD                Local administration allows             higher scores for projects that
                                                                                                                   AFFORDABLE HOUSING                    states to address affordable            include a certain number
                                                                                                                   TRUST FUND                            housing needs specific to their         of units for special needs
                                                                                                                   The Affordable Housing Trust          populations.                            populations. Buildings in
                                                                                            photo by Tony Coelho
                                                                                                                   Fund, established 31 years ago                                                West Hollywood developed
                                                                                                                   by the City Council, serves as a      Some states, including California,      using these funds include the
                                                                                                                   source of funds for the creation      have established tax credit             Courtyard at La Brea (32 units),
                                                                                                                   and support of permanently            programs in addition to the             Janet L. Witkin Center (17 units)
                                                                                                                   affordable housing in West            federal program. In California, the     and Blue Hibiscus (22 units).
                                                                                                                                                         demand for tax credits exceeds
HEARING APPEALS                    The Commission also                 other Cities do? What are the
                                                                                                      The Rent Stabilization             announces the annual general        key RSO concerns?
                                                                                                      Commission’s priority is to hear   adjustment. The annual            • Information on Owner

                                      RENT
                                                                                                      appeals of rent adjustment         general adjustment is 75% of        Occupancy

                                                                                                                                                                                                                RENT STABILIZATION COMMISSION
                                                                                                      hearings. Tenants or landlords     the increase in the Consumer
                                                                                                                                                                           • Non-smoking Apartments
                                                                                                      may appeal the hearing             Price Index rounded to the
                                                                                                      officer’s decision to the Rent     nearest quarter (0, 0.25, 0.50,   • Section 8 Updates
                                                                                                      Stabilization Commission           0.75). In 2016, the annual        • Commissioner Training

                                  STABILIZATION
                                                                                                      on any application for rent        general adjustment was set at       (Robert's Rules of Order/By
                                                                                                      adjustment. The hearing            1.25 percent.                       Laws/Brown Act)
                                                                                                      officer’s decision may                                               • Emergency Preparedness
                                                                                                      be appealed for any one            Newsletters were sent to            for Apartment Dwellers (In
                                                                                                      of three reasons: if the           landlords and tenants in            connection with Public Safety)

                                   COMMISSION
                                                                                                      applicant believes the             July and in December 2016         • Illegal Units & Impacts
                                                                                                      decision was made in error;        announcing the general              (Including Parking & Safety)
                                                                                                      if the determination is not        adjustment and the security
                                                                                                                                                                           • Review Annual Report
                                                                                                      reasonably supported by the        deposit interest rates.
                                                                                                      evidence; or if the decision in                                      • Outreach - targeted
                                                                                                                                                                             specifically to different groups
                                                                                                      some way violates the RSO.         CONDUCTING ANNUAL
                                                                                                                                         RENT STABILIZATION                • Building Blocks - Increased
18                                                                                                    In 2016, the Commission heard                                          Outreach                                  19
                                                                                                                                         COMMISSION
                                                                                                      11 appeals. Eight of these cases   STUDY SESSION                     • Short Term Rentals
                                                                                                      were appeals of rent-decrease                                        • What is the market pressure
                                                                                                                                         (November 10, 2016)
                                                                                                      hearing decisions, seven cases                                         affecting the RSO?
                                                                                                                                         Each year the Commission
                                                                                                      were on Maximum Allowable
                                                                                                                                         conducts a study session to
RENT STABILIZATION COMMISSION

                                The Rent Stabilization Commission provides a forum for                Rent determinations, and one
                                                                                                                                         determine possible topics
                                                                                                      case was on a compliance                                             THINGS TO KNOW
                                tenants and property owners to appeal decisions issued                determination.
                                                                                                                                         and compiles these into           EDUCATIONAL SERIES
                                                                                                                                         Suggested Priorities for the
                                by the hearing examiner concerning rents, property                                                       remainder of the fiscal year.
                                                                                                                                                                           In 2014, the Rent Stabilization
                                                                                                      IMPLEMENTING THE                                                     Commission agreed with staff
                                maintenance, housing services, and other important                                                       At the annual study session,      to use the Rent Stabilization
                                                                                                      RENT STABILIZATION                 the Commission developed
                                landlord-tenant issues. The Commission also reviews the                                                                                    Commission meetings on
                                                                                                      ORDINANCE (RSO)                    the following top 17 ongoing      WeHo-TV as an educational
                                City's Rent Regulations to propose appropriate changes                In addition to hearing appeals,    and new priorities for the        tool. In 2016, staff continued
                                to better implement and enforce the law.                              the Commission has other           remainder of fiscal year 2016.    to make presentations
                                                                                                      responsibilities in relation to                                      covering topics that are of
                                                                                                                                         • Appeals (Hearings)
                                                                                                      the implementation of the RSO.                                       high interest to the public
                                                                                                      The Commission announces           • Harassment
                                                                                                                                                                           based on data received from
                                                                                                      the annual interest rate on        • Periodic review of existing     the counter contacts and
                                                                                                      tenant security deposits             statutes/regulations            telephone inquiries. These
                                                                                                      that are held by landlords.        • RSO - Notice of last            Things to Know educational
                                                                               photo by Tony Coelho
                                                                                                      The interest rate for 2016           registrations                   presentations discuss
                                                                                                      was 0% because of the low          • Annual Affordable Housing       Relocation Benefits, the Re-
                                                                                                      interest rates offered at banks      Update                          registration process, Leases
                                                                                                      throughout the region.                                               and Maintenance, Mediation,
                                                                                                                                         • Code Enforcement- What
                                                                                                                                                                           and Hoarding.
LEGAL SERVICES AND LEGISLATIVE AFFAIRS DIVISION
                                                                                                                           RENT ADJUSTMENT HEARINGS
                                                                                                                           One of the ways in which the     reduction in rent. This
                                                                                                                           RSO prevents unlawful rent       process may also be used to

                                                  LEGAL SERVICES &
                                                                                                                           increases is through its rent    determine the Maximum
                                                                                                                           adjustment hearings process.     Allowable Rent (MAR) and
                                                                                                                           If an owner eliminates or        whether the landlord has
                                                                                                                           substantially reduces a          retained rent in excess of the

                                                     LEGISLATIVE
                                                                                                                           housing service or fails to      MAR. The hearings are held
                                                                                                                           perform required                 at city hall and are heard by a
                                                                                                                           maintenance, a tenant may        neutral hearing examiner.
                                                                                                                           apply for a corresponding

                                                       DIVISION                                                                          2016 Rent Adjustment Hearing Statistics

                                                                                                                                                                      Hearings Filed
                                                                                                                                                                      Hearings Held
                                                                                                                                                                                             2016

                                                                                                                                                                                              113
                                                                                                                                                                                              99
                                                                                                                                                                                                    2015

                                                                                                                                                                                                     113
                                                                                                                                                                                                      87
                                                                                                                                                                                                           2014

                                                                                                                                                                                                            106
                                                                                                                                                                                                             74
                                                                                                                                                                                                                  2013

                                                                                                                                                                                                                    97
                                                                                                                                                                                                                   56
                                                                                                                                                       Hearing Requests Withdrawn              11     14    22      15
                                                  The City’s Legal Services and Legislative Affairs Division                  Postponed to later date or dismissed administratively            3      12     10    26
20                                                                                                                                                                                                                                                   21
                                                  provides legal services to the City to support the
                                                  enforcement of rent stabilization laws, including tenant
                                                  harassment complaints. The Division is comprised of                      MEDIATION
                                                  staff attorneys, a governmental affairs liaison, support
LEGAL SERVICES AND LEGISLATIVE AFFAIRS DIVISION

                                                                                                                           Many problems can be solved      through a combination of
                                                  staff, and a mediator who provides free-of-cost mediation                through a communication          telephone calls and face-to-
                                                                                                                           and negotiation process          face meetings. Attempts are
                                                  services to help resolve landlord-tenant disputes                                                         made to resolve most rent
                                                                                                                           in which a neutral third
                                                  between businesses and residents, and other disputes.                    party assists participants to    adjustment applications prior
                                                  The City also contracts with Bet Tzedek legal services                   resolve disputes. Mediation      to scheduling a hearing. In
                                                                                                                           is confidential, voluntary       2016, the City’s mediator held
                                                  for the provision of free-of-cost legal services to assist               and requires parties who         15 formal mediations. Typical
                                                  with eviction issues, when appropriate.                                  will bargain in good faith.      issues for mediation include
                                                                                                                           The mediator does not tell       maintenance, parking, pets,
                                                                                                                           parties what to do, but rather   roommates, and relocation
                                                                                                                           assists them in identifying      when tenants must move out
                                                                                                                           and creating mutually            due to fires, fumigation, or
                                                                                                                           beneficial solutions to their    other habitability concerns.
                                                                                                                           conflict. The City’s mediator    The mediator also deals
                                                                                                    photo by Tony Coelho
                                                                                                                           spoke with approximately         with issues involving

                                                                                                                                                                                                                         photos by Tony Coelho
                                                                                                                           1,000 individuals in 2016, and   condominium homeowner
                                                                                                                           resolved 440 conflicts           associations.
RENT INCREASES AND VACANCY DECONTROL

                                                                                                                                                                                                                                                      RESIDENTIAL HOUSING INVENTORY AND RENT
                                                                                                                                                    Size                                              Units         %              Rent Stabilized
                                                                                                                                                                                                                                   Apartments

                                          RENT STABILIZED
                                                                                                                     Rent-stabilized                0 bedroom                                         2,430        15
                                                                                                                     properties in                                                                                                 15,234
                                                                                                                                                    1 bedroom                                         8,999        53
                                                                                                                     West Hollywood                 2 bedroom                                         4,862        29              Owner

                                         HOUSING INVENTORY
                                                                                                                     2016                           3 bedroom                                           473         3              Occupancy,
                                                                                                                                                    4 + bedroom                                          20         0              Section 8,
                                                                                                                                                                                                                                   Other

                                             AND RENT
                                                                                                                                                                                            Totals 16,784         100              1,550

                                                                                                                   The chart below shows the household income needed in 2016 to pay the rent in rent-stabilized units
                                                                                                                   broken down by number of bedrooms. Affordability was defined by using the housing industry standard
                                                                                                                   of 30 percent of gross household income.

                                         According to the American Community Survey, there are                                                      Pre -1996 Tenants                              2016 New Renters                        $150,120
                                         a total of 24,039 Residential Housing Units in the City of                   Household
                                                                                                                                                                                                                        $103,040
                                                                                                                      Income Needed
22                                       West Hollywood.20 Of these 16,784 fall under the City’s                      to Afford Rent in                    $63,600
                                                                                                                                                                                                $79,080
                                                                                                                                                                                                                                     $63,760             23
                                                                                                                                                                                                              $48,080
                                         Rent Stabilization Program.21                                                2016                       $33,920                                 $36,040

                                                                                                                                                   0 bedroom                               1 bedroom           2 bedroom             3 bedroom
RESIDENTIAL HOUSING INVENTORY AND RENT

                                                                                                                     Year             Increase        Units                             The chart on the left illustrates the increased
                                                                                                                                   Differences                                          number of apartments that have had rents brought
                                                                                                                     2016               +345          11,256                            to market rates.
                                                                                                                     2015                 +119        10,911
                                                                                                                                                                                        In the 21 years since Costa-Hawkins has been in effect,

                                                                                                                                                               Numbers are cumulative
                                                                                                                     2014                +244         10,792
                                                                                                                                                                                        64 percent of West Hollywood apartments have had at
                                                                                                                     2013                +295        10,548
                                                                                                                                                                                        least one market-rate increase upon vacancy.
                                                                                                                     2012               +349         10,253
                                                                                                                     2011                 +181         9,904                            Under the RSO, existing tenancies may be given an
                                                                                                                     2010                +219          9,723                            annual rent increase that is limited to 75% of the increase
                                                                                                                     2009                +397         9,504                             in the Consumer Price Index (CPI) rounded to the nearest
                                                                                                                     2008                +427          9,107                            quarter (0, 0.25, 0.50, 0.75). However, under California’s
                                                                                                                     2007               +543           8,680                            Costa-Hawkins Act, effective since 1996, State law allows
                                                                                            photo by Tony Coelho     2006               +693           8,137                            the rent to increase to what the market will bear upon
                                                                                                                                                                                        vacancy. 22 Rent stabilization requirements are then reset
                                                                                                                     2005               +654           7,444
                                                                                                                                                                                        at the new rent level, creating a greater increase in the
                                                                                                                     2004               +834           6,790
                                                                                                                                                                                        rents charged for newly rented units versus those where
                                                                                                                     2003                +942         5,956                             the tenant has remained in the same apartment for a
                                                                                                                     2002               +1,104         5,014                            number of years.
                                                                                                                     2001              +1,000          3,910
RENT STABILIZED APARTMENTS IN                                                                                                                                                                                  2016 ANNUAL GENERAL ADJUSTMENT­
                                                                       WEST HOLLYWOOD BY NUMBER OF BEDROOMS – 2016

                                                                                                                                                                                                                                                                                                                                                                                                                                                   RESIDENTIAL HOUSING INVENTORY AND RENT
                                                                                                                                                                                                                                                         The AGA is in effect from September 1 to August 31. Each year before July 1, the Rent
                                                                                                                                                                                                                                                         Stabilization Commission announces the amount of the adjustment so landlords who are
                                                           Pre -1996 Tenants                                              2016 New Renters                                 Numbers are in dollar amounts                                                 current with their registration fees can start giving 30-day advance increase notices by
                                                                                                                                                                                                                                                         August 1. To find out what the current AGA is, visit www.weho.org/rsh or call the City’s
                                                  0 BEDROOMS                                                                                                                                                                                     1,590   Rent Stabilization and Housing Information Coordinators at 323-848-6450.
                                                                                                                                                                                                                 1,402           1,490
                                                                                                 1,108            1,194          1,150                                          1,226            1,287
                                                                 962             1,005                                                           1,103          1,140
                                                918                                                                                       791            808             818              824             834             840             848            4.50%
                                         692              715             743             760              781            781                                                                                                                                                                                                                                                          4.00
                                                                                                                                                                                                                                                                                      3.75 3.75
                                                                                                                                                                                                                                                         4.00%
                                                                                                                                                                                                                                                                          3.50
                                                                                                                                                                                                                                                         3.50%                                                                                                                 3.25
                                                                                                                                                                                                                                                                 3.00                        3.50                                                           2.75                                     2.75
                                          2004             2005            2006           2007            2008             2009           2010            2011            2012             2013            2014            2015            2016          3.00%
                                                                                                                                                                                                                                                                                 3.25                       2.75                                                        2.75                                          2.25
                                                                                                                                                                                                                                                         2.50%
                                                                                                                                                                                                                                                                                                                                                2.25
                                                                                                                                                                                                                                                         2.00%     2.50                                                 1.75
                                                  1 BEDROOMS                                                                                                                                                                                    1,977                                                    2.00                   1.25               1.75
                                                                                                                                                                                                                                                                                                                                                               2.25                           2.25
                                                                                                                                                                                                                                                                                                                                                                                                                             1.25 1.25
                                                                                                                                                                                                                 1,682           1,777                   1.50%
                                                                                                                                 1,387                                           1,484           1,570
                                                                 1,160           1,229           1,326           1,366                           1,360           1,410                                                                                                                                                                                                  1.50                                  1.25                          1.00
                                                 1,083                                                                                                                                                                    919             928            1.00%                                                                              1.25
                                                                                                          853             853             864             883             894             901             912
                                          756             780             811             830                                                                                                                                                                                                               0.75                    1.00
                                                                                                                                                                                                                                                         0.50%
                                                                                                                                                                                                                                                                                                                                                                                                                                  0.75 0.75
                                                                                                                                                                                                                                                         0.00%                                                                                                                                            0
                                                                                                                                                                                                                                                                    86           88       90          92           94          96          98          00          02           04       06          08          10          12        14     16
                                          2004             2005            2006           2007            2008             2009           2010            2011            2012             2013            2014            2015            2016                   19        19          19          19          19         19          19          20          20          20          20        20            20       20          20      20

24                                                                                                                                                                                                                               2,398
                                                                                                                                                                                                                                                 2,576
                                                                                                                                                                                                                                                                                                                                                                                                                                                   25
                                                  2 BEDROOMS                                                                                                                                     2,125
                                                                                                                                                                                                                 2,246

                                                                                                 1,716           1,752           1,836           1,781           1,867
                                                                                                                                                                                 2,007
                                                                                                                                                                                                                                                                                               2016 SECURITY DEPOSIT INTEREST
                                                                 1,514           1,636
                                                 1,362                                                                                                                                                   1,217           1,226           1,238
                                                                                         1,106                                           1,150           1,179           1,193           1,202
                                         1,007           1,040           1,081                           1,136           1,136                                                                                                                           The City of West Hollywood’s Rent Stabilization                                                       2016 0.%
                                                                                                                                                                                                                                                         Ordinance requires that tenants be paid                                                                     0.%
RESIDENTIAL HOUSING INVENTORY AND RENT

                                                                                                                                                                                                                                                         interest on their security deposits by January                                                         2014 0.%
                                          2004             2005            2006           2007            2008             2009           2010            2011            2012             2013            2014            2015            2016
                                                                                                                                                                                                                                                                                                                                                                     0.%
                                                                                                                                                                                                                                                         31 of each year in an amount determined by                                                             2012 0.%
                                                                                                                                                                                                                                                         the City based on prevailing interest rates. The                                                             0.25%
                                                                                                                                                                                                                 3,660                           3,753   rate is determined by averaging the interest                                                           2010 0.25%
                                                                                                                                                                                                                                 3,454                                                                                                                                 0.50%
                                                  3 BEDROOMS                                                                                                                                                                                             percentage paid by five local banks to their
                                                                                                                                                                                 3,005                                                                                                                                                                         2008    0.50%
                                                                                                                 2,838           2,815                           2,830
                                                                                                                                                                                                 2,873                                                   customers for regular savings accounts. The                                                                   0.50%
                                                                                                 2,646                                           2,566
                                                1,909
                                                                 2,210           2,151                                                                                                                                                                   Rent Stabilization Commission announces the                                                           2006    0.50%
                                                                                                                                                                                                                                         1,642                                                                                                                         0.50%
                                                                         1,437           1,469           1,509           1,509           1,528           1,562           1,582           1,594           1,614           1,626                           required interest rate annually, and notifies
                                         1,338           1,381                                                                                                                                                                                                                                                                                                 2004    0.50%
                                                                                                                                                                                                                                                         the City’s landlords and tenants by mail in                                                                   0.50%
                                                                                                                                                                                                                                                         December of each year.                                                                                2002     0.75%
                                                                                                                                                                                                                                                                                                                                                                          1.25%
                                          2004             2005            2006           2007            2008             2009           2010            2011            2012             2013            2014            2015            2016                                                                                                                2000                       5.75%
                                                                                                                                                                                                                                                                                                                                                                                    4.25%
                                         The above charts show the yearly average rents paid by long term, pre-1996 tenants who are still in                                                                                                                                                                                                                    1998                  4.75%
                                         their units. It compares these average rents to the average move-in rents paid by new tenants in rent-                                                                                                                                                                                                                                        5.00%
                                         stabilized buildings broken down by the number of bedrooms in the unit. The average rent amounts for                                                                                                                                                                                                                   1996                  4.75%
                                         pre-1996 tenants were determined by taking the December 31, 1995 MAR (Maximum Allowable Rent) and                                                                                                                                                                                                                                             5.00%
                                         imputing all of the subsequent Annual General Adjustments (AGA) through 2016. The rent amounts for                                                                                                                                                                                                            7/85 – 12 /94            3.25%
                                         new tenancies were determined by averaging the rent levels listed by landlords on Re-Registration of                                                                                                                                                                                                                                         0%        2%               4%               6%
                                         New Tenancies in a Unit forms required for new tenancies.
Looking Ahead                                              Specific Actions the Division
                                                                                   Will Take in 2017

                        to 2017                                                    • Continue to educate tenants, landlords and members of the public

                                                                                                                                                                                         LOOKING AHEAD TO 2017
                                                                                     about the rent stabilization program.
                                                                                   • Initiate a study of financing various innovative housing types to provide
                                                                                     insight on any alternative ways to support housing opportunities.
                        Since incorporation in 1984, the City of West Hollywood    • Explore a tenant’s option-to-purchase program for West Hollywood.
                        has been committed to protecting and enhancing             • Establish a requirement that landlords provide a plan to ensure a
                        affordable housing opportunities with an emphasis            building remains habitable when major renovations are planned.
                        on rent stabilization laws. Looking ahead to 2017, the     • Introduce guidelines for landlords who wish to buy-out households.
                        Rent Stabilization and Housing Division will continue to   • Increase awareness of City rental requirements for all rental housing in
                        administer the RSO and inclusionary housing programs,        the City.
26                      providing community education, policy analysis, and        • Continue exploring incentives to encourage reinvestment in rent-                                      27
                        implementation of program components.                        stabilized buildings, upgrading plumbing, electrical, roofing and other
                                                                                     major systems.

                        In 2017, the Los Angeles region and California as a        • Continue the Home Secure Program by providing low-income seniors
                                                                                     and disabled residents with bathroom grab bars and other safety and
LOOKING AHEAD TO 2017

                        whole will face serious challenges in the availability       security upgrades.
                        of housing for very low, low, and moderate-income
                                                                                   • Collaborate with the Building and Safety Division and Planning Division
                        households. To help address these challenges, the City       to develop a program to retrofit existing buildings for earthquake/
                        of West Hollywood will remain committed to the RSO           seismic upgrades.
                        and the development and preservation of affordably         • Administer the Building Blocks Educational Series.
                        priced housing, and to supporting residents to continue    • Collaborate with nonprofit developers on future affordable housing.
                        to live and thrive in the community.
                                                                                   • Support legislative advocacy efforts to encourage lawmakers to revise
                                                                                     the Ellis Act and other rent stabilization and housing acts, and to create
                                                                                     a permanent source of funding for affordable housing.
                                                                                   • Continue implementing the Aging in Place/Aging in Community 5-Year
                                                                                     Strategic Plan.

                                                                                                                                                                  photo by Tony Coelho
THE CITY OF WEST HOLLYWOOD                                                                  REFERENCES:

                                          CITY COUNCIL                                                                        page 1 1 Generally, paying the affordable housing in-lieu      page 4 12 Southern California Association of Governments,
                                          Mayor Lauren Meister                                                                         fee is an option for projects with 10 or fewer                  5th Cycle Regional Needs Assessment Final
                                                                                                                                       residential units.                                              Allocation Plan, 1/1/2014 – 10/1/2021
                                          Mayor Pro Tempore John Heilman
                                          Council member John J. Duran                                                                2 Rent for new tenancies in one bedroom                page 6 13 United States Census Bureau/American Fact

                                                                                                                                                                                                                                                               REFERENCES \ CITATIONS
                                          Council member John D’Amico                                                                   apartments built prior to July 1, 1979 increased               Finder. “Selected Housing Characteristics, Year
                                                                                                                                        on average from $1,570 in 2013 to $1,977 in 2016.              2015.” 2011-2015 American Community Survey
                                          Council member Lindsey P. Horvath                                                                                                                            5-Year Estimates. U.S. Census Bureau’s American
                                                                                                                              page 2 3 Mission Impossible? Meeting California’s                        Community Survey Office, 2010. Web. 24
                                          RENT STABILIZATION COMMISSION                                                                Housing Challenge. Southern California                          February 2017. http://factfinder2.census.gov.
                                                                                                                                       Association of Governments. October, 2016
                                          Chair Richard Maggio                                                                         http://www.scag.ca.gov/Documents/                              14 City of West Hollywood. General Plan 2035:
                                          Vice-Chair David Gregoire                                                                    CaliforniaHousingSummitReport.pdf                                 2013-2021 Housing Element Technical Appendix.
                                          Robert Bergstein                                                                                                                                               December 2013. Web. 17 March 2017. http://
                                                                                                                                      4 California Housing Partnership Corporation                       www.weho.org/home/showdocument?id=15166.
                                          Alexander Gurfinkel                                                                           Website. https://chpc.net/
                                          Stephanie Harker                                                                                                                                            15 November 7, 2016 City Council report Chart on Page
                                          Josh Kurpies                                                                        page 3 5 USC Lusk Center For Real Estate Casden Real                       3, 51.7% of removed properties remain off-market
                                                                                                                                       Estate Economics Forecast 2016 Multifamily                        unchanged or converted to single family homes.
                                          Gail Sanes                                                                                   Report. USC Lusk Center for Real Estate. Beacon
                                                                                                                                       Economics. www.lusk.usc.edu/casden (accessed          page 8 16 The Ellis Act allows seniors and disabled tenants
28                                        STAFF                                                                                        January 22, 2017)                                               one year to relocate; all other tenants currently
                                                                                                                                                                                                       have 120 days.
                                                                                                                                                                                                                                                               29
                                          City Manager Paul Arevalo                                                                   6 California’s High Housing Costs: Causes and
                                                                                                                                        Consequences. California State Legislative          page 15 17 Southern California Association of Governments,
                                          Human Services and Rent Stabilization Department                                              Analyst’s Office. Mac Taylor. March 17, 2015.                  5th Cycle Regional Needs Assessment Final
                                          Director Elizabeth Savage                                                                     www.lao.ca.gov/reports/2015/finance/housing-                   Allocation Plan, 1/1/2014 – 10/1/2021
                                                                                                                                        costs/housing-costs.aspx
                                          Rent Stabilization and Housing Division
CITY OF WEST HOLLYWOOD ACKNOWLEDGEMENTS

                                                                                                                                                                                                      18 In the current state housing cycle (RHNA),
                                          Manager Peter Noonan                                                                        7 California Housing Partnership Corporation                       minimums were allocated based on mass transit.
                                                                                                                                        Website. https://chpc.net/                                       For example, on the Los Angeles Westside
                                                                                                                                                                                                         the City of Santa Monica received the bulk of
                                          ACKNOWLEDGEMENTS                                                                            8 Mission Impossible? Meeting California’s                         anticipated new housing growth, in part, because
                                          Co -writer/editing Sharon Collins                                                             Housing Challenge. Southern California                           of the new Expo light rail line. Beverly Hills, in
                                                                                                                                        Association of Governments. October, 2016                        contrast, received only 3 units.
                                          Photos courtesy of the City of West Hollywood                                                 http://www.scag.ca.gov/Documents/
                                          Photography Tony Coelho                                                                       CaliforniaHousingSummitReport.pdf                   page 17 19 California Department of Housing and Community
                                          Graphic Design Joanne Shannahoff                                                                                                                             Development. “Affordable Housing Cost Study:
                                                                                                                              page 4 9 City of West Hollywood Multi-Unit Housing                       Analysis of the Factors that Influence the Cost
                                                                                                                                        Resident Survey. Maslin, Maullin, Metz &                       of Building Multi-Family Affordable Housing in
                                                                                                                                        Associates. 11-21-2016 http://weho.granicus.                   California” (October 2015). http://www.hcd.ca.gov/
                                                                                                                                        com/MetaViewer.php?view_id=&event_
                                                                                                                                        id=960&meta_id=128467                               page 22 20 2009-2013 American Community Survey 5-Year
                                                                                                                                                                                                       Estimates.
                                                                                                                                      10 Profile of the City of West Hollywood. Southern
                                                                                                                                         California Association of Governments. May, 2015             21 A unit is considered part of the rent stabilization
                                                                                                                                         https://www.scag.ca.gov/Documents/                              program if it was constructed prior to January 1,
                                                                                                                                         WestHollywood.pdf                                               1979.

                                                                                                                                      11 Profile of the City of West Hollywood. Southern    page 23   22
                                                                                                                                                                                                           California Civil Code §1954.53
                                                                                                                                         California Association of Governments. May, 2015
                                                                                                                                         https://www.scag.ca.gov/Documents/
                                                                                                                                         WestHollywood.pdf

                                           2017 published by City of West Hollywood Rent Stabilization and Housing Division
City of West Hollywood
                       California 1984

                     2016 ANNUAL REPORT
                     City of West Hollywood
                     Rent Stabilization and Housing

                     City of West Hollywood
                     8300 Santa Monica Boulevard
                     West Hollywood, California 90069

                     Telephone: (323) 848-6400
                     TTY hearing impaired
                     (323) 848-6496

                     www.weho.org
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                     @wehocity

                     City of West Hollywood
                     Rent Stabilization and Housing
                     (323) 848-6450

                     HOURS
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                     8:00 am to 5:00 pm
                     Every Friday
                     8:00 am to 4:30 pm
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