ALERT - ORDINANCE NO 87737 - NEW RESIDENTIAL TENANCY REQUIREMENTS IN CITY OF LOS ANGELES

ALERT - ORDINANCE NO 87737 - NEW RESIDENTIAL TENANCY REQUIREMENTS IN CITY OF LOS ANGELES

Los Angeles landlords should be aware of a renter protection that went into effect earlier this year in LA City Ordinance No.187737. It is a notice that must be provided to residential tenants as of January 27, 2023. As a result, when a landlord in the City of Los Angeles now creates or renews a tenancy, he or she must provide the new notice to the tenant that explains the new tenant rights.

The notice must be posted in a common area of the property and at single family residences. A copy of a sample notice can be found here.

Evictions

Tenants must pay their full monthly rent beginning February 1, 2023. As of March 27, 2023, landlords can’t evict a tenant who falls behind on rent unless the tenant owes an amount higher than the Fair Market Rent (FMR). The FMR depends on the bedroom size of the rental unit.

At-Fault Evictions

Effective January 27, 2023, landlords must provide a legal reason for eviction. Tenants in rental units not subject to the City’s Rent Stabilization Ordinance (RSO) are protected at the end of their first lease, or six months after the commencement of their initial lease, whichever comes first.

The permitted reasons for an at-fault eviction reasons include the following:

  • Nonpayment of rent;
  • Violation of a lease/rental agreement;
  • Causing or permitting a nuisance;
  • Using the unit for an illegal purpose like drugs and gangs;
  • The failure to renew a similar lease; denial of access into the rental unit;
  • Being an unapproved subtenant at the end of the tenancy;
  • And failure to comply with an approved tenant habitability plan (THP).

Also, eviction protections tenants with unauthorized pets and additional tenants due to COVID-19 continue through the end of January next year.

No-Fault Evictions

Landlords must submit a Declaration of Intent to Evict to LAHD for all no-fault evictions for all rental units, submit required fees, and pay the tenant relocation assistance. The reasons for a no-fault eviction include:

  • Occupancy by the owner, family member or a resident manager;
  • Compliance with a government order;
  • Demolition or permanent removal from the rental housing market; or
  • Conversion of the property to affordable housing.

Landlords should note that Relocation Assistance is required for tenant no-fault evictions for all residential units. Relocation assistance for tenants who rent a Single Family Dwelling (SFD) is a month’s rent if the landlord is a natural person who owns no more than four residential units and a SFD on a separate lot. A landlord can deduct a tenant’s unpaid rental debt from the relocation assistance payment.

Note that a tenant can’t be evicted for non-payment of rent if the tenant did the following:

  • Gave the landlord a COVID-19 Related Declaration of Financial Distress within 15 days of the rent due date, for rent owed from March 1, 2020 through August 31, 2020. (This rent is Consumer Debt for which the tenant cannot be evicted.); or
  • Provided the landlord with a COVID-19 Related Declaration of Financial Distress within 15 days of the rent due date, for rent owed from September 1, 2020 through September 30, 2021, AND paid 25% of their rent. (This rent is Consumer Debt for which the tenant cannot be evicted.).

Tenants that followed these steps can’t be evicted, but a landlord can recover the rental debt in small claims court.

Rent Increases Under The RSO

Landlords of RSO properties can resume allowable rent increases effective February 1, 2024; however, banking or retroactive rent increases are not permitted. In addition, as of April 1, 2023, landlords may collect new LAHD approved cost recovery surcharges if a 30-day written notice is given to the tenant.

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