As LA County’s Moratoriums End In 2022, New Problematic Housing Proposals Are On The Horizon
At the September 27th Los Angeles County Board of Supervisors meeting, the Board of Supervisors approved a motion by a vote of 4-1, with Supervisor Barger opposing, calling for permanent housing policy changes regarding renter screening, amendments to the Rent Stabilization Ordinance’s (RSO) “just cause” eviction regulations governing non-payment of rent, and the imposition of a temporary 3% “cap” on rent increases through 2023, among other instruction and reporting. It is important to note that while the Los Angeles County eviction moratorium applied countywide, to both the incorporated cities and unincorporated areas, these new proposed ordinances would only apply to the County’s unincorporated areas.
Based on the Board’s action, County Counsel has been directed to draft two ordinances: one related to limitations on renter screening tools and one amending the County’s Rent Stabilization Ordinance (RSO).
Limitations on Use of Renter Screening Tools
The proposed ordinance to be drafted will severely limit rental housing providers ability to properly screen prospective renters by prohibiting the use of essential screening tools including using or inquiring about a prospective renter’s eviction history, using automated or algorithmic screening/evaluation services, or using approval scores in evaluating a rental application. In addition, the proposed ordinance would provide prospective renters and their representatives with a private right of action regarding ordinance violations.
Amendments to County’s Rent Stabilization Ordinance (RSO)
The proposed ordinance to be drafted will establish an affirmative defense to evictions based on non-payment of rent, whereby a renter could not be evicted if the amount of rent owed fell below a set threshold. The proposed monetary threshold would be set at “equal to one month of fair market rent for the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area (FMR), set annually by the U.S. Department of Housing and Urban Development (HUD) for 0–4-bedroom rental units, dependent on the type of rental unit occupied by the tenant”.
At this time, it is not clear how this affirmative defense would be used in practice. However, Supervisor Kuehl indicated that the intent was for it to be available on a one-time basis.
The proposed ordinance will also impose a temporary 3% cap on rent increases for RSO units in the County’s unincorporated areas through December 2023. The current RSO formula used to calculate annual allowable rent increases is based on the percentage in the average CPI over the previous twelve-month period ending in September with a maximum increase of 8%.
The proposed ordinances described above are to be brought to the Board for their consideration, as set forth below:
- Renter screening tools – in120 days
- RSO amendments – in 30 days
In addition to the proposed ordinances, County staff have also been directed to submit a report in 45 days that includes opportunities to provide financial support to mom-and-pop housing providers and low-income renters and a plan to assist incorporated cities within Los Angeles County who are interested in adopting rent control and related regulations.
During the same meeting, the Board of Supervisors also approved a motion for the County’s Department of Consumer and Business Affairs (DCBA) to provide the Board with a plan to establish a permanent Eviction Defense Program with a “right to counsel” ordinance, free legal representation and services for renters, within 90 days. Due to our advocacy efforts, Supervisor Barger submitted an amendment to the motion, which was also approved, directing DCBA to conduct comprehensive stakeholder engagement with property owners and renters in developing recommendations for the permanent program and to conduct outreach and educational services.
Prior to the Board of Supervisors meeting, the Association submitted two extensive letters expressing our opposition to the proposed ordinances which would severely hamper rental housing providers ability to mitigate risk, provide a safe environment for all residents in their buildings, assess a renter and their ability to pay rent and to meet the contractual requirements of a lease agreement. Moreover, the proposed RSO amendments would worsen the financial challenges that housing providers have endured over the last several years by placing additional, permanent barriers on housing providers’ ability to collect rent and imposing a broad-based rent increase cap of 3% for an additional year after the nearly three yearlong rent increase freeze. In addition, we highlighted our concerns relative to a permanent Eviction Defense Program. Furthermore, we expressed the value of focusing on homelessness and eviction prevention programs to provide rental housing provider and renter education and outreach, affording emergency rent subsidies or vouchers coupled with supportive services for renters at risk of homelessness, and mediation services when appropriate to facilitate communication and issue resolution between renters and rental housing providers to avoid a costly eviction process entirely.
The Association will continue to monitor this matters closely, strongly advocate for our members interests and provide updates.