Rent Stabilization Ordinance - Evictions & Tenant Buyout Notification Program - HCIDLA
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Evictions & Tenant Buyout Notification Program
Rent Stabilization
Ordinance (
May 2018 1
RENT STABILIZATION ORDINANCE (RSO)
• Overview of the RSO
• Tenant Buyout Notification Program
2
Rent Stabilization Ordinance (RSO)
The RSO covers 4 broad categories:
Allowable rent increases
Legal reasons for eviction
Relocation assistance payable to
tenants for no-fault evictions
Registration of rental units
3
What’s Covered by RSO?
Basic Rule: If it’s…
= Subject to the Rent Stabilization Ordinance (RSO)
4
What’s Not Covered by RSO?
• One single-family dwelling on a lot
• Exempt affordable housing units
• Dwelling units built after 10/1/1978, except for buildings
demolished and rebuilt within 5 years after 7/16/2007 (Ellis Act)
• Exempt affordable housing units
• Hotel & motel rooms, occupied less than 30 days
• Rental units in converted commercial buildings (adaptive re-use
projects) with first residential rental use after 10/1/1978
5
Allowable Rent Increases under RSO
• Annual Rent Increase – Includes security deposit - 1% additional per Gas and/or
Electric. (currently 3%).
• Additional Tenant – 10% increase within 60-Days of actual or constructive
knowledge.
• Vacancy Decontrol – Tenant voluntarily moves out, non-payment of rent, lease
violation, Failure to relocate due to THP & compliance w City Atty order.
• Condominiums – Pre-1996 tenants under full RSO (Registration & Eviction)
• Recovery of Registration & SCEP fees – 50% of Registration fee ($12.25) to be
collected only in August. 100% of SCEP fee ($3.61 x 12 months).
• Installation of Permanent Wired Smoke Detectors - $3/detector – requires written
notice within 2 months of installation.
*REDUCTION IN HOUSING SERVICES REQUIRES REDUCTION IN RENT
6
Allowable Rent Increases – Cost Recovery Programs
• Capital Improvement (temporary) – Improvement to the rental unit or common areas
containing the rental unit (pool, roof, carpet, A/C, Exterior paint, etc.) 60% of approved
costs over 72 months/$55 per month maximum.
• Primary Renovation (permanent) – Renovation of major building systems within rental
building & to abate exposures to hazardous materials (work requires a permit such as
plumbing, electrical, foundation, asbestos, etc.) 100% of approved costs amortized over
180 months/max 10% rent increase.
• Seismic Retrofit (temporary) – Cost amortized over 120 months/$38 rent increase for
120 months.
• Just & Reasonable Rent Increase (permanent) – When operating expenses exceed net
operating income or income form the property no longer provides a “just & reasonable”
return or investment.
• Rehabilitation Work (temporary) – Worked performed on or in a rental unit or common
area to comply with an Order issued by the City (HCIDLA, LADBS, Fire or Health Dept.)
7
Two Types of Eviction
Tenant At Fault
Tenant No-Fault
8
LEGAL REASONS FOR EVICTION
Tenant At Fault = No Relocation Assistance Required
1. Non-Payment of Rent
2. Lease Violation
3. Nuisance
4. Illegal Purpose
5. Failure to Renew Lease
6. Denial of Access
7. Subtenant Not Approved
8. Failure to Relocate as Required by Tenant Habitability Plan
9
LEGAL REASONS FOR EVICTION - Continued
Tenant Not At Fault = Relocation Assistance Required
9. Owner/Family/Manager Occupancy
10. Ellis Act (demolition/removal from rental market)
11. Government Order
12. Residential Hotels to be converted or demolished
13. HUD Foreclosure
14. Convert to Affordable Housing
10NO FAULT EVICTIONS = RELOCATION ASSISTANCE
Payment of
Relocation
Assistance
30/60/120/365 DAY NOTICE 11Relocation Assistance Amounts
July 1, 2017 through June 30, 2018:
< than 3 < than 80%
Type of Tenant 3 years or >
years AMI
ELIGIBLE $8,050 $10,550 $10,550
QUALIFIED $16,950 $20,050 $20,050
12Relocation Assistance Amounts (Mom& Pop)
July 1, 2017 through June 30, 2018:
July 1, 2016 – June 30, 2017
Eligible Tenant $7,750
Qualified
Tenant $15,550
Only applies to evictions for occupancy by the landlord, or spouse, child, parent, grandparent or grandchild
13Tenant Buyout Notification Program –
Effective January 25, 2017
Los Angeles City
Council approved an
amendment to the
RSO to require
notice of RSO rights
to tenants prior to
executing
agreements to move
out.
14What it covers…
A written agreement where a landlord pays a
tenant money or offers other consideration to
voluntarily move out of an RSO unit.
Examples:
• Buyout Agreements
• Cash for Keys Agreements
• Voluntary Vacate Agreements
15Tenant Buyout Notification Program
Ordinance #184673; RSO 151.31; effective 1-25-17
Regulation, monitoring & enforcement of
voluntary vacancies of RSO rental units.
Promotes fairness in negotiations.
Informs tenants of their RSO rights.
16Required Documents
1) RSO Disclosure Notice and
2) Buyout Agreement
* Both must be filed with HCIDLA within 60
days of signing the Buyout Agreement
17Required Documents - continued
Disclosure Notice (1st document signed)
Must use the HCIDLA issued notice
Landlord must give to tenant prior to executing the
Buyout Agreement
Dated & Signed by tenant and owner
Filed with HCIDLA within 60 days of signing the
buyout agreement
1819
Required Documents - continued
Buyout agreement (2nd document signed)
Written in primary language of tenant
Must state in 12 pt bold type above tenant signature line:
“You, (tenant name), may cancel this Buyout Agreement any
time up to 30 days after all parties have signed this
Agreement without any obligation or penalty.”
20Required Documents - continued
Buyout agreement (continued)
Dated & Signed by tenant and owner
Copy given to tenant
Filed with HCIDLA within 60 days of signing the buyout agreement
21How to File Disclosure Notice &
Buyout Agreement
Mail: HCIDLA- Rent Stabilization Division- 1200
West 7th St., 8th Floor, Los Angeles, CA 90017
Email: hcidla.buyout@lacity.org
HCIDLA Public Counters listed on handouts
22Tenant Rights
• Right not to accept- A tenant is not required to accept a Buyout
Offer.
• Right to consult an attorney and/or HCIDLA before signing.
• 30-Day right to rescind the Buyout Agreement during 30 days
after it is signed.
• Right to rescind at any time if RSO Disclosure Notice and Buyout
agreement do not comply with RSO 151. 31.
• Defense to Unlawful Detainer
• Right to private civil action
23To make an appointment call:
213-928-9075
DROP-IN SESSIONS
2:00 p.m.
1200 W. 7th St., Los Angeles 90017
Assistance with RSO & Applications
• Rent Registry Forms
• Help with Calculating Annual Allowable Rent
Increase
• Rent Adjustment Applications
• File a Complaint
24hcidla.lacity.org/events-calendar RSVP ONLINE @ hcidla.lacity.org/events-calendar 25
HomeforLARenters.com
(866) 557-7368
In person at an HCIDLA office
RSVP FOR WORKSHOPS
ONLINE AT
http://hcidapp.lacity.org/rsoworkshops
BY PHONE AT 213-928-9075
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