LA Housing Committee to Impose Major SCEP Fee Increase AND Directs City Attorney to Revise Proposed

Systematic Code Enforcement Program (SCEP) Fee Increase

At the City of Los Angeles Housing Committee meeting on Wednesday, April 14th, the Committee approved an astronomical Systematic Code Enforcement Program (SCEP) fee increase. The Committee also directed the City’s Housing and Community Investment Department (HCID+LA) to conduct an evaluation of the SCEP program and identify strategies to restructure the program, achieve cost savings and effective delivery of services. In addition, the Committee directed HCID+LA work with the City’s Administrative Officer (CAO) to identify federal resources to provide relief to rental housing providers and renters.

The Association strongly opposed the current SCEP fee increase especially at a time when rental housing providers are experiencing catastrophic financial distress and collecting little if any rent. We strongly urged the Committee to direct a comprehensive programmatic evaluation and the advancement of cost effective solutions prior to consideration of any fee increase. We believe that the City can maintain a robust program that is also cost effective and as the program was established 20 years ago and has a 95% compliance rate, a program evaluation is long overdue. Due to our advocacy efforts, the Committee recognized that it is time to thoughtfully evaluate and restructure the program.

The fee increase initially proposed by HCID+LA in its February 2021 report was reduced slightly based on the recommendations of the CAO. The fee increase approved by the Committee institutes a mid-year fee adjustment of $24.62 per unit to be invoiced in June 2021, and to be paid entirely by rental housing providers. In addition, the current annual fee of $43.32 per unit will be increased to $67.94 per unit in January 2022, with an allowable 50% pass through to renters. Previously the annual fee permitted a 100% pass through to renters.

Tenant Anti-Harassment Ordinance

During the same meeting the Committee also reviewed a draft Tenant Anti-Harassment ordinance and various proposed amendments by two Committee members: Council Members Lee and Raman. While there was extensive public comment, the Committee discussion was limited.

Committee Chair Cedillo made his position clear stating that all the amendments have been received by the City Attorney and that it is the City Attorney’s responsibility to reconcile the language of the competing amendments, and that the responsibility of the Committee’s is to advance public policy. Based on the Committee action taken, the City Attorney will review all the amendments and revise the draft ordinance accordingly. The revised draft ordinance will then be advanced to the full City Council for review.

Prior to the meeting and during the meeting’s public comment, the Association sought further amendments to the draft ordinance and raised concerns and opposition to several of the amendments advanced by Council Member Raman. We will continue to monitor this matter closely, share the revise draft ordinance once is publicly available, strongly advocate for our members interests and provide updates.