Got the Los Angeles Rent Freeze? HCID+LA Explains SCEP and RSO Fees, and Other Pass-Through Costs

Question

Even though there is an eviction moratorium and rent increase freeze in place, may I continue to pass-through Systematic Code Enforcement Program (SCEP) fees and Rent Stabilization Ordinance (RSO) fees to my tenants?

Answer

Yes, owners of rent stabilized units within the City of Los Angeles may continue to recover or “pass-through” the costs associated with RSO and SCEP fees.

Question

Even though there is an eviction moratorium and rent increase freeze in place, may I continue to pass-through my existing capital improvements and/or seismic retrofitting costs?

Answer

Yes, owners of rent stabilized units within the City of Los Angeles may continue to recover or “pass-through” the costs associated with existing, previously approved seismic retrofitting or other capital projects. To be allowable pass-throughs, the existing capital improvement or seismic retrofitting surcharges or “pass throughs” are required to have been in place as of the March rent due date and noticed during or prior to February 2020. No new pass-throughs are allowable on or after March 31, 2020 as these have been suspended for the time being.

Question

In light of the eviction moratorium and rent increase freeze that are in place, may I pass-through any new capital improvements and/or seismic retrofitting costs?

Answer

No. New surcharges for capital improvements and/or seismic retrofitting that have not previously been noticed to tenants in or before February 2020 cannot be imposed until sixty (60) days after the expiration of the emergency declaration. However, landlords may and should still apply within twelve (12) months of completing the work, so we the City of Los Angeles can process the applications and landlords can collect the pass-throughs later.