los angeles rent stabilization ordinance (larso) … • inventory –approximately 118,254...
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Los AngelesRent Stabilization Ordinance (LARSO)Overview
February 2012
What is rent stabilization?
Rent stabilization controls rents and limits evictions for certain properties in Los Angeles.
For rent
Basic Rule: If it’s…
In LA Built on or before 10/1/78
It’s covered by rent stabilization.
What’s Covered?
LARSO• Inventory
–Approximately 118,254 properties–638,000 RSO renter occupied
housing units–Includes condos, co-ops, rooming
houses, mobile home parks, hotels & motels
• A single family dwelling on a lot• A dwelling unit built after
10/1/78• An exempt affordable housing
unit
Rent Stabilization Ordinance Exemptions
The RSO does not apply to…
RSO Exemptions - continued
• Luxury units approved by LAHD• Hotel & motel rooms, occupied
less than 30 days• Rental units in converted
commercial buildings (adaptive re-use projects) with first rental use after 10/1/78
• Registration of rental units• What rent increases are
allowed?• What evictions are allowed?• Requirements for legal evictions• LAHD Services for landlords &
tenants
LARSO
Annual Rental Unit Registration
All RSO units rented or offered for rent must be registered yearly with LAHD.
Pay annual rental unit registration $ fee
Annual Registration (continued)
$24.51Rent
Registration Fee per Unit
Annual Registration Fees
$43.32 SCEP Feeper unit
Landlord pays:
$12.25Added to rent in June only. Need 30-day advance
notice.
$3.61Added to rent for
12 months for SCEP. Need 30-day
advance notice.
Tenants’ Share Payable to Landlord:
Annual Registration Fees(Continued)
2. Obtain a certificate
Annual Registration Fees(Continued)
Rent Registration Fee Comparison
• Berkeley $194/yr.• Beverly Hills $27.00/yr.• Oakland $30/yr.• San Francisco $29/yr.• Santa Monica $156/yr.• West Hollywood $120/yr.• Los Angeles $24.51/yr.
Registration of rental units• What rent increases are
allowed?• What evictions are allowed?• Requirements for legal evictions• LAHD Services for landlords &
tenants
LARSO
•Approval Not Required•Approval Required
Two Types of Rent Increases
What Rent Increases are Allowed?
Approval Not Required
What Rent Increases are Allowed?
Vacancy Decontrol
What Rent Increases are Allowed?
Annual Allowable Rent Increase3% - 8%
What Rent Increases are Allowed?
Additional Tenant Increase
What Rent Increases are Allowed?
Approval Required
What Rent Increases are Allowed?
• Capital Improvement Program
• Primary Renovation Program
• Cited Rehabilitation Work
• Just and Reasonable Rent Increase (NOI Review)
What Rent Increases are Allowed?
What Rent Increases are Allowed?
Reduction of housing services = illegal rent increase.
Habitability issues are handled by Code Enforcement.
Registration of rental units What rent increases are allowed?• What evictions are allowed?• Requirements for legal evictions• LAHD Services for landlords &
tenants
LARSO
What Evictions Are Allowed?
The RSO protects tenants from arbitrary
evictions.
•Tenant At Fault•Tenant No-Fault
Two Types
What Evictions Are Allowed?
Tenant At Fault
What Evictions Are Allowed?
• Non-payment of rent
• Lease violation• Nuisance• Drugs and Gangs• Illegal purpose
At-Fault Tenant Evictions
• Failure to renew like lease• Denial of access
• Subtenant not approved• Failure to relocate
per Tenant Habitability Plan
Tenant At-Fault Evictions
Tenant No-Fault
What Evictions Are Allowed?
• Owner/manager occupancy• Demolition/Permanent
Removal from Rental Market (Ellis)
• Government order• HUD foreclosure
No-Fault Evictions
A change in ownership is not a basis for eviction or rent increase.
What Evictions Are Allowed?
Registration of rental units What rent increases are allowed? What evictions are allowed?• Requirements for legal evictions• LAHD Services for landlords &
tenants
LARSO
1. May only evict for a legal reason under RSO.
Requirements For Legal Evictions
2. For no-fault evictions, must file Landlord Declaration of Intent to Eviction with LAHD
Requirements For Legal Evictions
3. Give tenant 30 or 60 day notice per State law
Requirements For Legal Evictions
4. Pay $ relocation assistance for no-fault evictions
Requirements For Legal Evictions
Relocation Assistance Amounts
Type of Tenant < than 3 years 3 years or >< than 80% AMI
ELIGIBLE $7,300 $9,650 $9,650
QUALIFIED $15,500 $18,300 $18,300
July 1, 2011 through June 30, 2012:
Relocation Amounts for “Mom & Pop” Properties
July 1, 2011 – June 30, 2012
Eligible Tenant $7,050
Qualified Tenant
$14,150
Applies to evictions for occupancy by the landlord, or spouse, child, parent, grandparent or grandchild.
Registration of rental units What rent increases are allowed? What evictions are allowed? Requirements for legal evictions• LAHD Services for landlords &
tenants
LARSO
Services for Tenants• Investigation of illegal
rent increases & evictions• Eviction defense• Relocation Assistance for
no-fault • Protections against
reduction of housing services
• Information & referrals
Through the eyes of a tenant
Landlord Services• Navigate rules under
RSO• Registration certificates• Allowable rent increase
applications for upgrades to units
• Workshops• Information & referrals
Through the eyes of a landlord
The Power of Communication
89%of tenants say their units are in good or fair condition
83%of tenants report being treated well by their landlord
http://lahd.lacity.org(213) 808-8888
In person at an LAHD officeEmail - [email protected]
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