Tag Archives: Rent Control

Landlord & Tenant Law

Ellis Act Evictions in Beverly Grove

NBC recently featured a story about 18 families being evicted under the Ellis Act from their apartments in order for the owner to build an eleven town homes. The story is Beverly Grove Residents Face Eviction.

The Ellis Act is increasingly being used in Los Angeles to make way for new developments. The Ellis Act is used by developers and landlords to demolish existing apartment units in order to develop new condominiums or homes. Under the Los Angeles Rent Stabilization Ordinance, a tenant is allowed to receive relocation assistance after receiving a 90 Day Notice to Quit.

If a tenant is not out after 90 days, a landlord is within his rights to file an unlawful detainer and evict the tenant. However, disabled persons and the elderly are allowed to extend their tenancies for up to one year as long as they provide notice of the extension under the Los Angeles Rent Stabilization and continue to pay rent.

If you have questions regarding the Ellis Act, please contact Attorney Anthony Marinaccio at 818-839-5220.

Landlord & Tenant Law

Section 8 Tenancies in Non-Rent Control Apartment Units

LAist recently posted an article regarding a landlord in in the Mid-City area of Los Angeles evicting all Section 8 tenants in an apartment building. Under Section 8 guidelines, a landlord is only required to serve a tenant with a 90 Day Notice to Quit stating that the landlord does not want to work with the Section 8 program.

A landlord in Los Angeles is allowed to terminate Section 8 tenancies when the apartment building is not subject to the Los Angeles Rent Stabilization Ordinance. As a tenant in a non-rent control building, there are much fewer protections against evictions. The Section 8 tenants being evicted under this situation would not be entitled to relocation fees under the Los Angeles Rent Stabilization Ordinance.

Generally, an apartment building is not subject to Los Angeles’ rent control if the certificate of occupancy for the building was issued after 1978. Tenants in non-rent control buildings in Los Angeles can receive 3o or 60 Day Notices to Quit unlike tenants in rent-control units.

The article is “New Landlord Doesn’t Feel Like Housing Poor People Anymore, Tenants Say.” For more information regarding evictions of Section 8 tenants, please contact Anthony Marinaccio at 818-839-5220.

Landlord & Tenant Law

What Los Angeles Rent Control Does and Does Not Do

I get many questions about the Los Angeles Rent Stabilization Ordinance from landlords and tenants who are often confused by what exactly the rent control ordinance controls and what it does not address.

The Los Angeles Housing and Community Development Department has a Bulletin on what the Department does and does not do for both landlords and tenants that I think is informative.

Basically, the Los Angeles’ rent control applies to all units built before 1978 in the City of Los Angeles. It is important to note that rent control does not apply to cities and other areas outside of the City of Los Angeles. Further, it does not apply to single family homes within the City of Los Angeles. Thus, a renter in a single family home can be served a 30 or 60 Day Notice to Quit while a renter in a multifamily apartment building in Los Angeles that was built before 1978 cannot be served a 30 or 60 Day Notice to Quit for no reason.

Los Angeles’ rent control regulates rents once a tenant moves in. For example, this year a landlord can only raise a tenant’s rent 3% once in the past twelve months. A landlord can also raise the rent an additional 1% for gas and 1% for electricity if the landlord pays for these utilities. A landlord can also raise a security deposit annually by the same annual percentage at the same time a landlord raises the rent.

Under Los Angeles’ rent control, a landlord cannot evict a tenant without cause. A landlord must comply with the legal reasons for an eviction under Los Angeles’ rent control.

If you have questions about Los Angeles’ rent control, please contact Anthony at 818-839-5220.

Landlord & Tenant Law

How Much Relocation Assistance is Required under the Los Angeles Rent Stabilization Ordinance?

Under the Los Angeles Rent Stabilization Ordinance, a landlord is required to pay relocation assistance to each unit prior to evicting a tenant for certain reasons. Los Angeles landlords are required to pay relocation assistance when they are evicting a tenant for the following most relevant reasons:

  1. Eviction for occupancy of the unit by landlord, landlord’s spouse, grandchild, child, parents, grandparents, or resident manager.
  2. Eviction under the Ellis Act.
  3. Eviction due to primary renovation of the unit.
  4. Eviction pursuant to a government order’s Notice to Vacate.

A tenant can either be an “eligible tenant” or “qualified tenant.” A qualified tenant is one that is over age 62, is handicapped or disabled, or who has minor dependent children. An eligible tenant is everyone else.

The next question to ask is how long the tenant has lived there. If a tenant has lived in a unit for more than three years, the tenant would entitled to greater relocation assistance.

The following chart is relevant until June 30, 2015:

Tenants Tenants with Less Than Three Years Tenants with More Than Three Years Income Below 80% of Area Median Income Tenants Renting in Mom & Pop Properties
Eligible Tenant $7,700 $10,200 $10,200 $7,450
Qualified Tenant $16,350 $19,300 $19,300 $15,000

Relocation assistance under the Los Angeles Rent Stabilization Ordinance would be part of an eviction and required the Los Angeles Housing Department to be involved. If you have any questions regarding the process, please contact Attorney Anthony Marinaccio at 818-839-5220 to set up a consultation.

Landlord & Tenant Law

LAHD Rent Stabilization Ordinance and Systematic Code Enforcement Program

By now (January 14, 2015), all landlords who own property in City of Los Angeles should have received their annual bill from the Los Angeles Housing and Community Investment Department. The fees for all rent control units in Los Angeles are $67.83 per unit. Payments are due February 28, 2015. They must be received by February 28, 2015 (not just postmarked by that day).

If you are seeking an annual exemption (i.e., you as the landlord lives in one unit or for some exemption) you need make sure it is filed with LAHD by January 31, 2015. They are to be received by that date, so make sure it gets there by then (although you can do it online).

If you are a landlord of a multifamily building in Los Angeles and did not receive a bill, you should contact LAHD immediately to get one. If you are interested in using LAHD’s online portal to make payments, get an exemption, or print out certificates, you can go to youtube to get assistance. There are several videos from LAHD that are available here.

Landlord & Tenant Law

Los Angeles Considering Expedited Process to Legalize “Illegal Apartments”

A huge issue facing landlords within the City of Los Angeles is renting units that may not have a certificate of occupancy. Often these units are garage conversions, converted apartments, or makeshit homes. Under the Los Angeles Rent Stabilization Ordinance, a landlord can only rent a unit that is lawfully registered with the City. This means that it has a certificate of occupancy from the Department of Building and Safety and it is properly registered with the Los Angeles Housing Department.

The Los Angeles Times reports that tenants and landlords may be working together to attempt to provide “amnesty” for illegal units. The issue that often arises is that “illegal units” provide affordable housing, but once discovered by the City of Los Angeles, these units must be vacated.

In order to vacate units, landlords are often required to pay relocation assistance. However, tenants are unable to find equivalent affordable housing. This interesting unity of landlord and tenant groups may be what Los Angeles needs to address unlawful units within the City.

“Landlords, tenants unite on amnesty plan for illegal apartments” provides more detail on this issue.

Landlord & Tenant Law

Los Angeles Landlords Allowed to Pass on SCEP Costs to Tenants in June

Los Angeles landlords are allowed to pass on 1/2 of the registration fees under the Los Angeles Rent Stabilization Ordinance in June 2014. In 2014, the total  cost allowed to be passed on to tenants is $12.25. This one time fee can be paid anytime in June 2014; however, a landlord is required to serve a 30 Day Notice to every unit in order to collect the fee. It is generally easier to collect this fee with rent that is due on the first, which means that 30 Day Notices must be served by May 2, 2014. For example, if a notice is served on May 10, 2014, the tenant would be required to pay the $12.25 on June 9, 2014.

It is important to note that a landlord must serve a copy of the landlord’s Rent Stabilization Registration Certificate to each tenant in order to recover the $12.25. Marinaccio Law is providing a blank thirty day notice for Los Angeles landlords and property managers to fill out and serve to their tenants to collect the $12.25 fee. Please contact Anthony at (818) 839-5220 for your free form.

Landlord & Tenant Law

Consequence of Not Serving Rental Registration Certificate to Tenants in Los Angeles

A recent case highlighted an often overlooked requirement under the Los Angeles Rent Stabilization Ordinance (Los Angeles’ rent control). Under the Los Angeles Rent Stabilization Ordinance, a landlord is required to serve every tenant a copy of the landlord’s rent registration statement or renewal statement from the Los Angeles Housing and Community Investment Department. However, in Lyles v. Sangadeo-Patel, the Court found failure to serve the rent registration certificate did not allow a tenant to receive restitution for prior rent that was paid. The only defense to not serving a statement would be for the tenant to refuse to pay rent.

However, it is important to note that even if a tenant withholds rent as a result of a landlord failing to serve a tenant a copy of the rent registration statement, a landlord must simply serve the notice and the tenant is required to pay rent under the Los Angeles Rent Stabilization Ordinance. This is an important requirement that landlords must perform prior to filing an unlawful detainer against a tenant in a rent control unit.

Plaintiff relied heavily on a previous case, Carter v. Cohen, that held a tenant subject to illegal rent increases and living in a unit without a certificate of occupancy would be entitled to all rent paid to the landlord and treble damages. Here, the rental unit had a certificate of occupancy and was “legal;” however, the only issue was whether or not failure to serve a rent registration statement entitled a tenant to all back rent paid to a landlord. The Court found that such a result would “be an absurd and unreasonable consequence.”

Although this case provides some relief to Los Angeles landlords who do not serve an annual rent registration certificate, a landlord should still do so because failing to do so provides a valid defense to any eviction for non-payment of rent.

Landlord & Tenant Law

Resident Managers and Rent Increases under Los Angeles Rent Stabilization

A recent California decision highlighted the issues that emerge when a landlord releases a resident manager from employment but the resident manager continues to the live on the property. In particular, how the Los Angeles Rent Stabilization Ordinance provides guidance on this situation is important for Los Angeles landlords subject to rent control to understand. 1300 N.  Curson Investors, LLC v. Drumea provides some guidance on this issue that is relevant to Los Angeles landlords, property managers, and resident managers.

Landlord, 1300 N. Curson Investors, LLC (“Landlord”) sued its former resident manager, Cecilia Drumea (“Resident Manager”), and her mother (collectively “Tenants”) seeking declaratory relief, ejectment, and damages. On July 1, 2011, the Landlord had purchased an apartment building in the City of Los Angeles that was subject to the Los Angeles Rent Stabilization. The day prior to the close of escrow, the former owner removed Resident Manager from her duties as the resident manager. The Resident Manager had moved into the building December 13, 1992. Her written lease agreement dated from 1992 indicated her rent was $850/month. In December 1993, she became the resident manager, and was not required to pay her rent. In compensation for her services, she lived rent free.

Landlord, after purchasing the building, served Tenants with a Notice of Rent Increase, increasing the rent to $1,552.03 commencing March 1, 2012. Landlord claims it is entitled to all the rent increases from 1993 to 2012 allowed under the Los Angeles Rent Stabilization Ordinance. In response, tenants still only paid $850/month, but each payment was rejected by the Landlord. Tenants also filed a complaint with the Los Angeles Housing Department.

Landlord filed a lawsuit seeking adjudication on whether or not it could increase Tenants rent to $1,552.03. The trial court found that it could not, and Landlord appealed.

On appeal, the Court found that the Landlord could increase the rent for all the years a tenant also worked as the resident manager. If a tenant becomes a resident manager and is then relieved of her duties, a landlord has a right to increase the tenant’s rent by each annual adjustment while the tenant was acting as resident manager. However, a landlord cannot simply charge market rent, so in the Court’s eyes, the tenant is still protected. The Resident Manager argued that she was never served with the annual registration statement and notices of rent increases during the time she also worked as the resident manager. The Court did not agree that this was required, and found it would be impractical for a landlord to do so.

It is important to note that there is a major difference if a resident manager pays a partial rent payment. An annual rent increase notice and the rental registration certificate must be served, and the rent can only be raised on the partial amount actually paid. The situation would also have been different if the tenant had moved in as the resident manager, and not originally as a tenant who was hired as the resident manager.

A tenant who is also a resident manager has many of the same rights under the Los Angeles Stabilization Ordinance that all tenants have; however, this is a major difference. Generally, landlords cannot “bank” annual increases, so it is a “use it or lose it” policy. If a landlord does not increase the rent during the year, he loses the annual adjustment allowed under the Los Angeles Rent Stabilization Ordinance.

The legal issues between landlords, property managers, and resident managers can be tricky because they involve both landlord-tenant and employment law. It is important to the note the differences how the Los Angeles Rent Stabilization Ordinance treats resident managers. The Los Angeles Housing Department provides a handout highlighting some the information landlords should know.

Landlord & Tenant Law

Los Angeles Rent Stabilization Ordinance and Ellis Act Evictions

The Los Angeles Times reported a growing trend as the real estate market heats up and construction increases, evictions under California’s Ellis Act. Evictions from rent-controlled units on the rise in L.A provides a glimpse into non-fault evictions where a tenant is simply evicted because the landlord desires to remove the rental unit from the rental market.

California’s Ellis Act (Government Code Section 7060 et seq.) allows a landlord to remove a rental housing unit from the rental market. Although it generally supersedes local rent control laws, the City of Los Angeles provides a process where a landlord evicts a tenant under the Ellis Act. A summary of the information provided by the Los Angeles Housing Department can be found here.

The Ellis Act generally is used by landlords looking to develop a rental property into a condominium complex, single family homes, or condominium conversion. These evictions were less common during the housing crash; however, are becoming a more popular method for development as real estate prices rise. Ellis Act evictions have been very common in San Francisco, and are gaining more traction in Los Angeles. 

Los Angeles landlords who desire to remove their rental units from the rental market in order to develop the property into another use (condominiums, commercial property, etc.) should seek legal counsel before attempting to perform any evictions because the Los Angeles Housing Department provides very strict guidelines to be performed by a landlord prior to filing any unlawful detainer. Evictions under the Ellis Act are generally more complicated than those for non-payment of rent or breaches of a rental agreement, and can be very contested.