City of Los Angeles Moratoriums Update: The Los Angeles Housing Department’s Report is Released

The long-awaited Los Angeles Housing Department (LAHD) report has been released and while it proposes an end date to the City of Los Angeles’ moratoriums on evictions and rent increases, the recommendations do not provide for the immediacy that our Association has long advocated for in ending the moratoriums, and also brings other issues into play such as a proposal to expand the City’s Rent Stabilization Ordinance (RSO) “just cause” eviction requirements to non-RSO units.

The general report recommendations are outlined below. We encourage members with properties in the City of Los Angeles to review the full details of the report by clicking on the button below:

REPORT

The next step in this process is for the report and related recommendations to be discussed in City Council Committee. The matter has been referred to two committees: the Ad Hoc Committee on COVID-19 Recovery and Neighborhood Investment and the Housing Committee. The Association will continue to monitor this issue closely, advocate for our members interests and provide updates as the issue advances.

What You Need to Know

Eviction Moratorium

Generally, the City’s eviction moratorium was adopted in 2020 and prohibits evictions for non-payment of rent if the renter is unable to pay rent due to circumstances related to the COVID-19 pandemic, for no-fault reasons, based on the presence of unauthorized occupants or pets, or nuisance related to the pandemic.  In addition, owners are prohibited from Ellis Act removals until 60 days after the expiration of the local emergency. Currently, the eviction moratorium is set to expire upon the expiration of the local emergency, an unknown date.

The Los Angeles Housing Department report provides the following recommendations related to the end of the City’s eviction moratorium:

Eviction Moratorium Expiration

Sets a specific end date of December 31, 2022 with some exceptions, discussed below.

Prohibition on Eviction Due to Non-payment of Rent

Beginning on November 1, 2022 through December 31, 2022, renters would be required to notify the housing provider within seven (7) days after the rent is due and self-attest, using a form provided by the Housing Department, under penalty of perjury, that they are unable to pay rent due to COVID-19 financial impacts. This means that if a renter does not provide notice and the required self-attestation, the renter can be evicted for failure to pay rent due on or after November 1, 2022 with proper notice.

Prohibitions on Evictions Based on No-Fault Reasons, Unauthorized Pets and Additional Occupants, Nuisance, Demolition or Ellis Act Removals

The recommendations provide several dates for the lifting of these eviction prohibitions dependent on the circumstances.

• No-Fault evictions would be permitted after December 31, 2022, unless the eviction is to comply with a government order, in which case such evictions would be permitted upon the effective date of the proposed ordinance.
• Evictions based on unauthorized pets or additional occupants, or nuisance would be permitted after December 31, 2022.
• Evictions to demolition or Ellis Act removals: permitted 60 days after December 31, 2022, the expiration of the eviction moratorium.
• Evictions to place a resident manager in the unit would only be permitted if having an onsite manager is required by law or to comply with the terms of an affordable housing covenant agreement.

Rent Repayment Periods

• For rental debt accrued from March 1, 2020 through September 30, 2021 – Renters have until August 1, 2023 to pay the unpaid deferred rent due.
• For rental debt accrued from October 1, 2021 through December 31, 2022 – Renters have until December 31, 2023 to pay the unpaid deferred rent due.

Rent Increase Freeze

In 2020, the City Council also adopted a rent increase freeze which prohibits rent increases on rent stabilized units until one year following the end of the local emergency.

LAHD is recommending that the rent increase freeze expire twelve months following the expiration of the eviction moratorium on December 31, 2022. This means that owners would not be permitted to issue any rent increases on RSO units until January 1, 2024. It is important to note while the LAHD report references to a recommendation that “annual rent increases for RSO units would continue to be paused until January 1, 2024”, it is not specifically noted in the recommendations listed and related instructions for Council consideration.  As a result, it is not clear whether it would be part of the potential City Council action.

In addition to LAHD’s recommendations related to the end of the City’s eviction moratorium, based on the direction given by the City Council, LAHD is recommending several actions including:

• Directing the City Attorney to draft an ordinance expanding the City’s “Just Cause” eviction requirements to non-RSO units inclusive of relocation fees.
• For the City Attorney and LAHD to evaluate and report back on the feasibility of requiring a threshold for the amount of rent that must be in arrears in order to bring an unlawful detainer action based on non-payment of rent and whether renters who receive rent increases of more than 10% within a 12-month period and move out as a result of the rent increase can be given relocation assistance
• Directing several City agencies to conduct a study of mandated City fees and their impact on property owners operating expenses and include such findings as part of the study of the RSO annual allowable increase formula.

This article is for informational purposes only. If you have any questions regarding your property or specific tenancies and the requirements of any local law changes described herein, please consult with an attorney.