Budget Trouble at Home? City of Los Angeles Now Bills Homeowners for Fees They Don’t Owe

Budget Trouble at Home? City of Los Angeles Now Bills Homeowners for Fees They Don't Owe

Summary:

• Los Angeles homeowners are receiving bills for a $31.05 "Just Cause Enforcement Fee" that many don't actually owe
• The City is sending bills to property owners whose mailing address differs from their property address, incorrectly assuming these homes are rentals
• Homeowners can claim an exemption but must do so annually using a specific form

What's Happening

Thousands of Property Owners Were Billed $31.05 by the City for No Apparent Reason

Many homeowners in Los Angeles are receiving menacing letters from the City of Los Angeles Housing Department (LAHD) demanding that they pay a $31.05 fee or explain why they shouldn't have to. The so-called "Just Cause Enforcement Fee" applies to owners of single-family, condominium or accessory dwelling rental units that are not subject to the city's Rent Stabilization Ordinance, commonly known as rent control.

Background on the Just Cause Ordinance

Single-family homes, condominiums and certain accessory dwelling units are not subject to local rent control, but if they are in the City of Los Angeles and are rented, they are subject to the city's new Just Cause Ordinance (JCO), enacted in January following the massive fires. The JCO provides tenants with additional protection from eviction.

The Problem

However, LAHD's letters and billing statements for the enforcement of the JCO fee are also going out to homeowners whose properties are not rented. According to the Housing Department's website, "Recipients of the informational letter and billing statement will receive it if their mailing address differs from the property address in the Los Angeles Assessor Tax Collector's database." Even though the city requires that "all properties rented or offered for rent must be registered annually," homeowners who receive their mail at a post office box or other address are presumed by the city to be renting their homes.

The Threatening Nature of the Letters

The "informational letter" is far from friendly. It begins with the heading (in all caps and bold), "RE: JUST CAUSE ORDINANCE PROPERTY DETERMINATION NOTICE" and warns, "Failure to pay the fees by the due date will result in assessment of delinquent penalty fees and further collection activities which may result in a report to a credit reporting bureau, additional court action, or other efforts."

Concerns About the City's Approach

Homeowners can fill out a form attesting that their home is not being rented and request an exemption from the fee, but they must request the exemption every year. "The City of Los Angeles is probably hoping that sending scary letters will frighten a certain number of homeowners into paying a fee they don't owe," said Howard Jarvis Taxpayers Association President Jon Coupal. "But just because the city is running a billion-dollar deficit does not mean it can collect fees on property for services that provide no benefit to the property owner, or that are not owed at all."

The Howard Jarvis Taxpayers Association, a member-supported nonprofit organization dedicated to protecting California taxpayers and the constitutional taxpayer protections, was the sponsor of Proposition 218, an initiative constitutional amendment approved by voters in 1996, which prohibits local governments from imposing arbitrary fees on property owners and requires voter approval of tax increases.

How to Get an Exemption

Any owner of a single-family house, condominium or accessory dwelling unit who is not renting, you may claim an exemption for your property from the City of Los Angeles as "Not Rented" or "Owner Occupied." The exemption form was mailed with the bill and information about the JCO that was received by property owners. The City also provides the exemption form online at: https://housing.lacity.gov/wp-content/uploads/2025/01/EC25-BLANK-FORM.pdf. Any property owner seeking exemption must complete Section 2B and indicate either "T1" (Owner-Occupied) or "T3" (Not Rented). Sections 1 and 2 should have been already populated with the JCO information received from the City by mail.