West Hollywood Increases Complexity for Security Improvement Reimbursement Program
On Monday October 3rd, the West Hollywood City Council voted to approve several revisions to the security improvements reimbursement program that exists under Rent Stabilization Regulation 60089. The new amendments will be final in 45 days. The new regulations eliminate an owner’s ability to select a recoupment formula that had accelerated the recovery period (amortization) of the improvement costs by 50%. Instead, the owners must wait the entire time of the specified cost recovery period as prescribed in Regulation 60040A. In addition, the increase in rent cannot amount to more than 10% of the then total current monthly rent and the amount may not be increased during the entire cost recovery period (even if rent is increased). Further, any outstanding recoupment cannot be collected by the new owner if the building is sold.
The Association submitted a comment letter to the full City Council prior to the meeting recommending that rather than imposing the additional restrictions, the City should reach out to all stakeholders to create a brand-new regulation that would actually be used by the city’s property owners. As City Staff stated in their report, “Staff had mentioned at its initial presentation to the Commission that the program established by Regulation 60089 is underutilized, and the primary purpose of the presentation was to bring attention to its existence.” In fact, the Staff could only find one previous instance of the cost recovery program ever having been used.
These new amendments make the regulation even less likely to be used by rent housing providers. The upcoming election in West Hollywood gives residents the opportunity to elect City Council members that may be open to having a substantive dialogue with all stakeholders, including rental housing providers. We encourage our members to give to the AAGLA PAC generously as this is the best mechanism we have to achieve real change in West Hollywood and elsewhere. Give today at https://aagla.org/candidatespac/.
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