News Alert: L.A. City Council Considers Higher Fees and More Restrictions for Inspections and Rent E
In October 2023, the L.A. City Council passed two motions, one regarding changing the existing Systematic Code Enforcement Program (SCEP, which conducts proactive inspections of multifamily properties for habitability) and one changing the existing Rent Escrow Account Program (REAP).
These motions were co-authored by all three City Council members who are also Democratic Socialist of America (DSA) members, namely Nithya Raman, Eunisses Hernandez and Hugo Soto-Martinez and seconded by City Council member Heather Hutt (Hutt is now running for election in November against Grace Yoo, who is far more business friendly).
Your Input is Being Requested: The Los Angeles Housing Department (LAHD) has been tasked with providing a report back to the City Council with recommended changes and is now accepting suggestions from housing providers. We encourage all AAGLA members with rental properties in the City of Los Angeles to submit their comments for improving these programs to Liseth Romero-Martinez at liseth.romero-martinez@lacity.org and copy the full L.A. City Council as well (see attached list) no later than close of business on Monday, April 22.
Some of the ideas that will be considered, include:
- Creation of a new petition process for renters to have their rents adjusted downward by the City.
- Any repairs (not just “primary renovations”) must have a Tenant Habitability Plan (THP) created and filed.
- Development of escalated fines imposed on owners.
Some of the comments submitted by AAGLA pertaining to SCEP include:
- SCEP inspectors cite property owners for issues that are not related to habitability. In some instances, the behavior of SCEP inspectors borders on harassment of property owners.
- If there is an issue between tenant and property owner such as non-payment of rent, tenants will report a problem to LAHD. Sometimes there is no basis for the problem or a tenant will intentionally cause the problem such as by removing smoke detectors or damaging something (window, appliance, etc.).
- There is no recourse when tenants falsely report issues or cause the underlying issues. Property owners are the only ones at risk.
- SCEP inspectors often prompt tenants leading the tenants to report issues (“Are you sure there are no problems in your unit?”). SCEP inspectors should conduct their own inspection and not solicit tenants’ input as the tenants may have biased views (e.g., they may want their unit to be repainted or want new carpeting).
- The late fees ($1,000 per day) are excessive and punitive, particularly since the availability of labor and the substantial losses incurred by housing providers under 4 years of COVID related regulations.
- SCEP inspectors should focus solely on habitability issues and not building code issues. They do not have the training for building codes and they do not perform prior research to determine if proper permits already exist.
- If tenants refuse an inspection, the SCEP inspectors should accept that and move on, and not bother the tenant.
- SCEP inspectors should remove owner-occupied units from their scope. Members report that SCEP inspectors have demanded to see owner-occupied units.
- SCEP should provide a detailed checklist so that housing providers can better prepare for the inspections.
Now is your chance to make your voices heard EARLY on this issue before LAHD has submitted their recommendations to the City Council. Make sure you take the time TODAY to give your input for needed changes based on your first-hand experiences with these programs.
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.