Apartment Association of Greater L.A. Announces “Win” in Lawsuit Against L.A. City

Apartment Association of Greater L.A. Announces “Win” in Lawsuit Against L.A. City

 Housing Providers Prevail in Overturning One of Two Harmful Renter Protection Ordinances

LOS ANGELES, CALIFORNIA – APRIL 17, 2026: The Apartment Association of Greater Los Angeles (AAGLA) announced on Friday that it had prevailed in its lawsuit against the City of Los Angeles seeking to overturn the city’s Ordinance No. 187764 (“Relocation Assistance Ordinance”), which forced rental housing providers to pay substantial relocation fees when implementing a rent increase exceeding a specified amount on housing legally exempt from local and state rent stabilization rules.

In its lawsuit, AAGLA argued the Relocation Assistance Ordinance’s requirement that housing providers pay relocation assistance to tenants who choose to voluntarily vacate following a lawful rent increase was preempted by the Costa-Hawkins Rental Housing Act (Costa-Hawkins Act) (Civ. Code, § 1954.40 et seq.). In its ruling, the Court found “[r]equiring landlords to make such payments when the [Costa-Hawkins Act] specifically authorizes landlords to increase the rent (for non-rent-controlled units) to fair market value frustrates the purpose of the [A]ct; thus, the relocation assistance requirement is preempted.”

In the same lawsuit, AAGLA had also sought to prohibit the City’s enforcement of Ordinance No. 187763 requiring a financial threshold (“Threshold Ordinance”) of past due rent (equal to one month’s fair market rent as set by the U.S. Housing and Urban Development Department) be met prior to initiating eviction proceedings. Unfortunately, AAGLA did not prevail in overturning this ordinance, but may evaluate options for further appeal. In its ruling, the Court of Appeals found that the Threshold Ordinance merely regulates the substantive grounds for eviction, and does not interfere with the procedural process for eviction available to housing providers once grounds for eviction have been established. In other words, the Court found that the Threshold Ordinance was similar to “Just-Cause” eviction regulations.

The lawsuit was initially filed in the Superior Court of the State of California and was later appealed by AAGLA to the State of California Court of Appeals, District 2. Both ordinances have been in effect since March 27, 2023.

Matthew Williams, President of the AAGLA Board of Directors and a Los Angeles property manager stated: “We are pleased with the Court’s decision, although just a partial victory. The City’s Ordinance No. 1877764 referred to as the Relocation Assistance Ordinance imposed severe financial penalties on rental property owners who legally increased rent above specified limits on any rental unit that is exempt from state and local rent control in the event a renter then decided to relocate.” Mr. Williams further commented: “Providing housing in such an extreme regulatory environment has exposed property owners to significant legal risks, increased housing costs, and made the housing business far too complicated for most small operators. Increasingly, owners in California and the Greater Los Angeles Area specifically are seeking the exit ramp on the rental housing business, and this trend is causing severe housing shortages, particularly in affordable rental units.”

Commenting on AAGLA’s win, Chief Executive and Executive Director, Daniel Yukelson, stated: “This is a great result for property owners in the City of Los Angeles. Anyone who owns a condominium or single-family home, or any other rental property that is exempt under the law from state or local rent caps in the City of Los Angeles will no longer be subjected to the provisions of the costly Relocation Ordinance.” Commenting on the Court’s decision regarding the Threshold Ordinance, Mr. Yukelson stated: “We continue to firmly believe that imposing a requirement which forces housing providers to just sit back and allow past due rent to accumulate until the City’s arbitrary financial threshold of past due rent is met flies in the face of State Law allowing owners to serve 3-day notices and initiate legal proceedings to quickly recover rent owed.”

AAGLA was represented by the law firm of Rutan & Tucker LLP in Irvine, California.

Founded in 1917, AAGLA seeks to promote the highest levels of professionalism within the multifamily rental housing industry.  It provides a wide array of services and benefits that meet the needs of rental housing providers of all sizes, including educational seminars and member events, expert operational advice, and an extensive library of forms needed to successfully own and manage rental properties. AAGLA also serves as a powerful advocate and lobbyist for rental housing providers at the local, county, state, and federal levels of government.  AAGLA maintains a Legal Fund to provide for necessary resources to fund litigation seeking to protect the rights of property owners and overturn harmful regulations. For more information, go to: www.aagla.org/legalfund.

Contact:         Daniel M. Yukelson, Executive Director

                        Apartment Association of Greater Los Angeles

                        Email: dan@aagla.org

                        Telephone: (213) 384-4131; Ext. 322