The City of Los Angeles Wants More of YOUR Money

At a time when owners are not collecting rent, tenants are skipping out on leases, there’s no permitted rent increases, and the economy is a mess in shambles, now here comes again the City of Los Angeles with yet another proposed fee increase.

During a meeting in June 2020, the Apartment Association of Greater Los Angeles became aware of a proposal being put forth by the Los Angeles Housing and Community Development and Investment Department (HCID+LA) regarding a fee study being prepared by HCID+LA and the possibility of increased Systematic Code Enforcement Program (SCEP) fees. HCID+LA staff indicated the City needs to increase SCEP fees significantly.

While, at this time, the proposed increase has not yet been placed on the City Council meeting agenda, the current annual SCEP fee of $43.32 would be increased to a proposed SCEP fee of $81.59, or an increase of more than 88%!!! The last SCEP fee increase was in 2012. Under the existing ordinance, owners are permitted to “pass-through” 100% of the fee to renters. However, the HCID+LA staff report notes that a 50% pass through of the new, higher SCEP fee could be an option, therefore, placing nearly the entire “brunt” of this increase onto the backs of property owners.

All of this is not surprising for a City and a Department of a City that is always against those who are working to solve California’s housing crisis, we the rental housing providers. HCID+LA has said that without the 88%+ increase in fees, the SCEP program would incur a budget shortfall of $27 Million…that’s not surprising either for a City that continually experiences “out of control,” run-away cost overruns and severe pension shortfalls. In the City of Los Angeles, their apparent moto is: “Budgets are meant to be broken.”