Recently, a Los Angeles City Councilman has raised the possibility of having tenants subject to the Los Angeles Rent Stabilization Ordinance pay for earthquake retrofitting of apartment buildings. Currently, under the Los Angeles Rent Stabilization Ordinance a landlord can raise pass 50% of the costs of capital improvements to tenants. However, the Los Angeles City Councilman wants to review whether or not it would be possible for a landlord to pass on the entire cost of earthquake retrofitting to tenants over a reasonable time.
A similar proposal passed in San Francisco, where a landlord can pass on costs to earthquake retrofit an apartment building. The cost is spread over 20 years and certain tenants are exempt from the rent raise. Currently, the Los Angeles Rent Stabilization Ordinance allows for a landlord to pass on 50% of the costs of capital improvements to tenants spread over six years (however, to determine the costs the total cost of the improvements are divided by 60 months). The City of Los Angeles Housing and Community Investment Department provides more information on the Capital Improvement program in its Rent Adjustment Commission Regulations and Capital Improvement Surcharges: Information and Application for Owners.
The Los Angeles Times article is entitled “Tenants Could Pay Part of Earthquake Retrofitting Under Proposal.”