Housing Providers Participating in Beverly Hills’ Rent Subsidy Program May Be Giving Up Some Importa

WARNING: Beverly Hills Rental Property Owners Should Carefully Read the Fine Print

For a mere few Shekels of badly needed rent relief for tenants and to assist housing providers, the City of Beverly Hills is asking the City’s rental housing providers to sign, under penalty of perjury a contract known as the “Landlord’s / Representative’s Declaration Under Penalty of Perjury” (“Declaration”). While the City’s rental subsidy program is well intentioned and would provide much needed assistance to renters and housing providers alike, because of the restrictions imposed under the Declaration, it is suggested that housing providers steer clear.

Here is what housing providers will be agreeing to when signing the Declaration which is being signed under penalty of perjury:

• Not in default under a loan or property is not for sale, and tenants are not required to make payments to a lender, receiver, or trustee.
• Provide notice on City form to tenants to meet and discuss repayment of past due rent, and within 10 days of signing Declaration
• provide copy of notice to City, schedule meeting with tenant within 15 days and hold meeting within 60 days.
• Cannot serve a Notice to Pay Rent or Quit nor attempt to collect past due rent for a 12-month period after the City’s emergency order is lifted (whenever that might be) and not charge interest nor late fees because of a substantial financial impact related to COVID-19.
• Cure all outstanding code violations.

Similar requirements imposed by the City of Los Angeles has resulted in only very limited acceptance of that City’s rental assistance program by housing providers. As a result, the City has now modified its program to remit funds directly to qualified renters leaving it up to renters to decide where the money will be spent, which we may only hope some portion will go towards rent.

Requiring owners to sign a contract under penalty of perjury that, among other things, prohibits owners from serving notice of non-payment, charging late fees or interest, or attempting to collect rent for 12 months following the lifting of an emergency order with no end in sight, is something owners should consider carefully. While many of these contractual provisions may be covered under the City’s ordinance, our Association has taken the position that these prohibitions are unconstitutional, and we have undertaken a constitutional challenge via a Federal lawsuit against the City of Los Angeles these same issues.

Beverly Hills established its Rent Subsidy Program to assist renters financially impacted by COVID-19. The application period was November 16th through December 7th and the Program provides for a maximum subsidy of $3,000 for eligible low-income renters residing in Beverly Hills with payments made directly to rental property owners.

Housing providers should be aware of the conditions imposed under the Declaration and should take care to read and understand what they are getting into. It is sometimes disappointing that our elected officials and the bureaucrats that run our local governments never seem to be able to step back for a moment and think how they might feel about being asked to sign a contract under penalty of perjury if they were sitting in our shoes, as if this were required for their person investment in rental property just to gain a couple of thousand dollars. Let us ask these elected officials and bureaucrats, does this make sense to you? It certainly does not make sense to me.