LA Mayor Garcetti Signs New “Tenant Buyout Ordinance” to Accompany Rent Stabilization Ordinance Rules for City of LA
Los Angeles has seen a trend of rapidly increasing rents for sometime now, an issue not unfamiliar to the news media as opposing sides battle over the effects of displacement and the rights of property owners. Most recently, advocates took to the streets of Koreatown last week where L.A. Tenant’s Union members warned of the “cash for keys” offers, declaring, “You have rights…Don’t sign, don’t move and don’t take the money.”
In response to the concerns of renters rights’ groups, Mayor Eric Garcetti and the Los Angeles City Council signed the Tenant Buyout Ordinance to “help protect vulnerable populations – like senior citizens and immigrants – from displacement.” But this ordinance will also affect property owners.
Last year, rents in the city rose by a massive 11.5%, according to Zillow. Steady increases in rents has far surpassed the allowable 3% per year (under RSO) meaning many long term tenants are paying far below market, leaving property owners and investors incentivized to relocate tenants and re-rent at market rate. While half of L.A. families live in apartments covered by the Rent Stabilization Ordinance (RSO), property owners are still being accused of unfairly intimidating tenants to relocate through threat of eviction and private buyout agreements, when they do not understand their rights.
Here’s What You Need to Know About the New Ordinance:
Landlords must provide tenants with a written disclosure notice of the tenant’s rights under the Rent Stabilization Ordinance (RSO), to include information on eviction, relocation assistance and the contact information for the HCIDLA hotline.
Tenants will be allowed to rescind buyout agreements for any reason for up to 30 days after the agreement is fully executed.
Landlords are required to file copies of the agreements with HCIDLA.
The ordinance will provide that the agreements satisfy the stipulated requirements and if they do not may be rescinded at any time.
The ordinance will provide tenants with an affirmative defense to an unlawful detainer and a civil remedy for actual damages and civil penalties against landlords who fail to comply with buyout agreement regulations.
As Real Estate Professionals, we sit in the middle of this issue, because as community members no one wants to see displacement of families, however we do believe that property owners also need to be protected. Mayor Garcetti understands the value of real estate investment in communities as he is on track to reach his goal of 100,000 new housing units by 2021, but some annalists are questioning whether the new regulations will deter new investments. The Apartment Association of Greater Los Angeles’ spokesman Fred Sutton said that, “Harassment absolutely should not be taking place and people should know their rights….but public disclosure of private agreements is concerning.”
WHAT DO YOU THINK ABOUT THE NEW ORDINANCE?
IF YOU ARE A LANDLORD OR TENANT IN THE LA AREA, WE WOULD LOVE TO SPEAK WITH YOU ABOUT HOW THIS ORDINANCE WILL AFFECT YOU!
IF YOU HAVE QUESTIONS ABOUT HOW TENANT RELOCATION WORKS, WOULD LIKE A REFERRAL FOR A LAWYER OR RELOCATION SPECIALIST, CALL US!
PROPERTY OWNERS, TIRED OF THE CITY OF LA AND LA HOUSING DEPARTMENT?
WANT TO SELL OR 1031 INTO A NON RENT CONTROL/NON CITY OF LA BUILDING?
LET’S DO IT!!