GOVERNMENT AFFAIRS — LOCAL LEGISLATIVE REVIEW |
||||||
|
Fight Drugs and Gangs — Untie the Hands of Residents and Owners
n Los Angeles, tenants involved in criminal activity can be extremely difficult for rental property owners to remove from multifamily buildings due to the strict eviction protection regulations of the city's Rent Stabilization Ordinance (RSO).
First, an apartment owner must have one or more witnesses to illegal conduct in order to prevail in court. As of now, the names and addresses of such witnesses must be disclosed on any eviction notice or notice to comply with an existing lease agreement or the law.
Many complaining witnesses fear retaliation from accused criminals due to being required to disclose their identities before trial. In many cases (settlements and such), trial does not take place at all so tenants are needlessly exposed to danger. The : reprisal problem is particularly acute in some city housing projects where gangs are well established.
Tenants need to be able to report criminal activity when they see it without fear of identity disclosure before a trial. This information is available through court discovery processes that are accessible to all parties.
With that said, AAGLA is sponsoring a City Council motion, to be authored by Councilmember Janice Hahn, asking for an amendment to the RSO that would remove any requirement that the names and addresses of witnesses to criminal activity be included in eviction notices or notices to comply. More on this later...
Motion on Megan's Law Initiates New "311" Program in L.A.
ver a year ago, while interviewing Richard Alarcon during his race for the 7th District L.A. City Council seat, the subject of Megan's Law came up. AAGLA members on the panel explained to him that owners and managers of apartment buildings cannot use information from the Megan's Law website to search for tenants applying for apartments and use that information to deny them housing during the application process if they are found to be registered sex offenders. State law finds it to be "discriminatory." Therefore, we are forbidden to deny them housing, and we face a $25,000 fine if we do.
And there begins the saga of the soon-to-debut L.A. City "311" program (it remains nameless at this time) that will help monitor sex offenders registered or not. At the time the Alarcon meeting took place, he was still a State Assemblymember. He introduced legislation shortly after our meeting that would have allowed owners and managers to use the information from the website when considering prospective tenants. The legislation died when Alarcon left his Assembly seat to take a newly-won position on the L.A. City Council.
Still interested in helping us and protecting good tenants, Councilmember Alarcon and his council colleague, Dennis Zine, introduced a motion that would allow the use of the website at the city level. We knew the motion would not go very far as the intent of the legislation is superseded by state law. Subsequently, the City Attorney's office was directed by the Public Safety Committee to work with AAGLA and tenant groups to come up with some sort of possible program that can help reduce the threat of sex offenders living in or near multifamily buildings. Thus, the L.A. City "311" sex offender alert program was born.
While there are still numerous details to finalize, such as training and promotion, the idea is fairly simple. Owners, managers, and tenants will be provided a method via the L.A. City 3-1-1 non-emergency information line to report suspicious behavior of a sexual nature to 3-1-1 operators who will be trained to forward these calls to the L.A. Police Department's Registration Enforcement and Compliance Team (REACT) section. REACT will do the follow-up from there — by interviewing, checking registration status and monitoring anyone who is reported. With this program, we hope to put potential sex offenders on notice. Sexual misconduct in multi‑family buildings will not be tolerated.
This program is a win-win not only for owners and tenants, but for the City of Los Angeles as a whole. The program will be unveiled this summer. Look for more information in future editions Apartment Age magazine.
Don't Forget About AAGLA's Monthly Saturday Morning Meetings
Attending AAGLA’s monthly member meetings — held on the second Saturday of most months (see the calendar for more info) — can be very helpful. The quality of our speakers and their political influence has increased over the past few years. It is important for us to communicate our positions on issues to these leaders. It is just as important to THEM to hear our suggestions and comments. Please participate by attending these meetings ‑ only two hours of your time each month is all we ask.
Building Relationships — AAGLA's Ties to Government Grow Stronger
s soon as I walked in the door of our 90th Anniversary Celebration in December, I could sense that things had changed for the better. There, L.A. City Councilmember Dennis Zine and City Attorney Rocky Delgadillo were whooping it up with AAGLA Past-Presidents Harold Greenberg and Larry Cannizzaro.
In a corner across the room, I saw State Assemblymembers Mike Davis, Democrat, and Bob Huff, Republican, chatting with AAGLA State Lobbyist Steve Carlson about a new legislative idea for the rental housing industry.
Councilmembers Bernard Parks and Jan Perry also dropped by to honor our President, John Schulhof, and AAGLA with a resolution from the entire L.A. City Council. Many other legislators — past and present — were in attendance or represented; and all were having a great time. It was a terrific evening. Click here to see pics from 2007 Installation dinner.
It used to be like pulling teeth to get a great group of colleagues and counterparts together for one of these events. As AAGLA has grown more vocal and stronger, both financially and politically, many more civic and state leaders have taken notice. But, there was something else.
Business organizations and associations, such as the L.A. Area Chamber of Commerce, the Central City Association, and other apartment associations, were well represented at the gathering as well. Many staff members from the Councilmembers' offices and L.A. City departments, Planning, City Attorney and Public Works, with whom we have worked, were in attendance. We were disappointed, though not particularly surprised, that no one from the L.A. Housing Department came, even though we sent close to 20 individual invitations — go figure.
Building closer relationships with legislators, staff members, and other business organizations has been a priority for AAGLA over the past few years. In doing so, we have put ourselves in a position to be more proactive with regard to programs and legislation.
In that regard, we have a number of ideas cooking at the state and local levels. I mentioned several of them in my article last month, including the creation of a ratio utility billing
system for water, and changes to the nuisance eviction policies to make it easier to remove drug dealers and gangsters from multi-family rentals. Stay tuned for a very active, or should I say PROactive, year. See below for information on how you can help.
Don't Forget About AAGLA's Monthly Saturday Morning and Santa Monica Meetings
Attending AAGLA’s monthly member meetings — held on the second Saturday and fourth Monday of most months (see the calendar) — can be very helpful. The quality of our speakers and their political influence has increased over the past few years. Not only is it important for us to communicate our positions on issues to these leaders; it is just as important to THEM to hear our suggestions and comments. Please participate by attending these meetings. All we ask is two hours of your time each month.
Gearing Up for 2008 — It could be a Watershed Year
, for one, am excited about the prospects that 2008 may bring for the rental housing industry in the Southland. We will most likely receive the final data and recommendations from Economic Roundtable, the firm that has been conducting the study of the L.A. Rent Stabilization Ordinance (RSO). We hope the results of this study will give us the anticipated good ammunition we need to make some positive changes to the RSO.
In the meantime, AAGLA is pursuing some‑thing that could result in a win-win for us and the City of Los Angeles. Via letters to the editor and visits to City Hall, I have been shopping the idea of getting tenants in L.A. to pay for their own water.
The city is in the middle of its worst water crisis in years. Most programs that have come together to fight the shortage have focused on "conservation." But why should tenants "conserve" water when they don't have to pay for it? It's just plain common sense. I'm hoping a majority of the members of the L.A. City Council will reach this indisputable conclusion.
We are proposing that the city allow rental property owners to use a ratio utility billing system in order to facilitate tenants paying for their fair share of the water they use. This program could be optional for owners — just like pass throughs. One of our many goals for 2008 is to secure a motion that would help solve the water crisis and, at the same time, help relieve many owners of the burden of having to pay this expensive utility with no way to control its use.
Also on our 2008 agenda, we have our sights set on reforming the nuisance abatement and eviction proceedings for gang activity and drug dealing. In order to protect everyone, we must make it easier for owners to throw out gangsters and drug dealers.
AAGLA is also working on proposals including the following: easier permits for non-conforming, yet perfectly habitable units; better capital improvement programs; and a security enhancement program. There is lots more to come. Please follow our progress during this new year.
Tenant Relocation Fees
One of our primary battles to reverse tenant relocation fees back to their old structure on relocations other than those used with the Ellis Act has carried over into this year. In August of last year, you may recall, we were able to secure the motion to make the change. Last month, the motion was heard for the first time in the Housing, Community and Economic Development Committee (HCED).
After lengthy testimony by both sides, HCED Chairman Herb J. Wesson, Jr., directed the L.A. Housing Department (LAHD) to compile a report of how the new fee rates are affecting "good faith" relocations. The LAHD was given 90 days to complete the report. Now, we will most likely have to wait until this summer at the earliest to see these fees lowered.
Remember, we were assured that ONLY demolition and conversion relocation fees were to be changed. This is still a big issue for us this year. So stay tuned for more information on this one.
New Rent and Security Deposit Interest Levels In S.M., W.H., & L.A.
In Santa Monica, since Sept. 1, 2007, the annual allowable rent increase is 2.3%. It may change again on Sept. 1 this year. There is no requirement to pay interest on security deposits in the City of Santa Monica.
In West Hollywood, the annual allowable rent increase is 2.25%, as of September 1, 2007. Interest paid on security deposits remains at .05%.
In L.A. the annual allowable rent increase will remain at 5% until June 30, 2008. As of July 1, 2008, the allowable rent increase goes back down to 3%. Interest to be paid on security deposits in L.A is 3.22% in 2008.
2007 Had Its Ups and Downs — Mostly Ups
t is truly amazing how quickly this year flew by. This is most likely due to all the action at the various city halls around the area.
In this article, I will recap some of the ups and downs that 2007 brought to AAGLA. So, if you don't care for roller coaster rides, hold on tight.
We started the year concentrating on upcoming elections for the cities of Beverly Hills, Santa Monica, and Los Angeles. Eventually, our decisions would pay off on a grand scale as most of the candidates we supported in the three cities was elected.
Beverly Hills
It was especially important for our members in Beverly Hills. City staff in B.H. had proposed to create a systematic code enforcement program similar to the one that exists in L.A. AAGLA, through direct mail to our members, property owner meetings, lobbying efforts and our support for two winning candidates basically killed the radical plan for the program. This was a big win for AAGLA.
Los Angeles
Later in the spring, we suffered a small setback in Los Angeles with new construction built on land where a rent-controlled building once stood. It might sound confusing, but the bottom line is that the L.A. City Council, prompted by the tenant-minded Housing Department, voted to expand rent control into new construction citing an imaginary loophole in the state Ellis Act. AAGLA protested, citing a conflict with the Costa-Hawkins act of 1995, which even supersedes Ellis. The Mayor signed the ordinance anyway. AAGLA, as usual, filed a lawsuit to overturn the new illegal policy. We lost in the first court battle; but, we have appealed the ruling by the judge to a higher court. Stay tuned on this issue.
In April, the L.A. City Council adopted new higher tenant relocation fees for "good faith" evictions. The original intent of this action was to stem the growing number of condo conversions and demolitions of rent-controlled buildings that were occurring in the city. These tripled fees were meant only to apply in these two instances.
Unbeknownst to us and most of the Council, the Housing Department was able to slip in ALL "good faith" evictions, including owner occupancy and occupancy for a resident manager. We were outraged and have had a motion introduced that will reverse the fees. This is another issue to watch as we end the year.
Last July brought the highest annual allowable increases we have seen in rent-controlled cities in close to 15 years. This was a breath of fresh air.
In September, the city finalized and launched its new Bulky Item Pick-Up program for multi-family buildings in L.A. Negotiating the particulars of this program took AAGLA close to three years. This was a big win for AAGLA members. It is a service that will help clean up the blight caused by discarded items in many parts of the city, such as old furniture and broken appliances. When the service is used, it will most likely result in added value to properties in those areas.
Also, the program was originally to be paid for by rental property owners only. We were able to come to terms with the city, and owners and tenants will split the cost of the service another AAGLA victory.
Finally, one of AAGLA's biggest accomplishments was to help secure the funding for a new study of the L.A. Rent Stabilization Ordinance. A study has not been conducted in almost 14 years. This time around there will be closer scrutiny of the process as AAGLA fought for and won the creation of a citizen oversight committee to help marshal the data and make certain that it is interpreted in a fair manner.
We have an appointment to this committee and we expect the final recommendations from this study could have some very, very positive effects on our industry.
I would like to thank our many AAGLA volunteers who helped me this year — you know who you are and, unfortunately, you are too numerous to list. I would also like to send my appreciation to the city staff members and members of the City Council who have been so open-minded this year. I have truly enjoyed working with all of you to help improve our industry and affordable housing in the Southland. See you next year.
We Need Help in Your Community
If you are a member of AAGLA, then you know that legislative advocacy is one of the best benefits you receive from the association. However, we alone cannot fight the good fight to keep this industry viable. We need your help.
We need you to keep an eye on your own community by reading the paper, attending your city council, city commission, or neighborhood council meetings. If you have political contacts such as city staff members or elected officials — please let us know. Communication is very important. Let us hear from you. You may contact me at 213-384-4131 or by e‑mail at jim@aagla.org.
Think You have it Bad in L.A.? Try New Orleans AAGLA Participates in Code Enforcement Summit in New Orleans
Late in September, I was invited by the City of New Orleans and the New Orleans Finance Authority (NOFA) to visit and discuss the issue of systematic code enforcement. I accompanied a representative from the Code Enforcement Division of the Los Angeles Housing Department (LAHD).
Together, we testified before the New Orleans City Council Housing and Human Resources Committee, met with their Code Enforcement Department, and conducted a roundtable discussion with local business and apartment association representatives. This was an eye‑opening (if not popping) experience.
But let's start from the beginning. Also, please keep in mind that this is two years after Hurricane Katrina swept through this once-thriving metropolis. As soon as we exited the airport, I sensed something strange. I had been to New Orleans before — two and a half years prior to the big storm. Less hustle and bustle, new pungent odors, and less foliage were all very apparent.
A representative from the NOFA picked us up and showed us around New Orleans. For two hours we drove. Everywhere, there were lingering reminders of the disaster that occurred two years prior. Homes and apartment buildings were discolored and marked by surging tidal waters 16 feet above the ground.
Many of them still bore the spray painted codes that the relief agencies used to say they had checked for survivors and/or bodies.
In the lower 9th Ward, there only exists one occupied home for every 10 that once stood. Vacant lots and empty dilapidated homes scar every block ‑ doors remain open as they were when their owners left.
"Squatter problem?" I ask. "No", I am told. "Who would want to live here?"
An eyesore springs from one of the once empty lots. It is the bio-friendly home that actor Brad Pitt is constructing for some lucky family. It is a building completely uncharacteristic of the area which was once graced with a 19th century charm. It is the only sign of residential redevelopment that we see in the lower 9th.
Most victims do not have the financial resources to come back and rebuild. Their properties just sit. Some residents opted to move into "Katrina Cottages" provided by the Federal Emergency Management Agency (FEMA). The cottages resemble painted cargo containers and are about the same square footage. There, these folks sit — with no where to go.
In St. Bernard Parrish, and more affluent areas, some of those displaced by Katrina come back on the weekends to slowly rebuild — after having purchased homes elsewhere. The population of Baton Rouge to the north, we are told, swelled by 30%. Half of the population of New Orleans has yet to come back.
Government bureaucracy and the mismanagement of funds are, for the most part, big problems. It is estimated that FEMA and other agencies spent over $400,000 per household after Katrina ‑with very little to show for it.
We came to New Orleans to give some insight as to how a systematic code enforcement program could help snap the city out of its funk. Believe me, I had a "heads up" for the apartment association representatives there.
While some sort of a SCEP program may help in N.O., it needs to be run fairly and impartially. It does not need to be staffed by overzealous inspectors and does not need to charge outrageous fees and fines.
One beneficial thing is that there is no rent control in New Orleans. The burden of rebuilding, refurbishing and even cleaning can be shared by everyone to bring back the quality of life that was once enjoyed in all parts of this beautiful community. The biggest challenge for the city is that they virtually had no code enforcement program before the hurricane.
At this time, there are seven N.O. code enforcement officers — compared to the hundreds in L.A. How will they ever process, inspect, and approve all of the projects and tasks that need to be completed in order for the residents to begin coming back?
How do they remove the existing blight so that investors and developers will see possibilities for new housing?
Systematic code enforcement might be a way to motivate owners to clean up their properties and remove the blight. The best way to ignite a building boom is to create incentives and the opportunity to make some money!
I hope we never experience the "BIG ONE" here in So. Cal., and I'm happy to be back.
Long Overdue Rent Stabilization Study Begins in L.A. Three years ago, AAGLA tried to get a long overdue study of the Los Angeles Rent Stabilization Ordinance (RSO) approved by the City Council and conducted by an outside, impartial firm or institution. Last month, Economic Roundtable, the group hired for this analysis, began the year-long task of gathering data and conducting interviews and surveys around the city. Already, members of AAGLA's Board of Directors have participated in focus groups that were designed to fine‑tune the questions for the survey.
During the process, over 2000 rental property owners will be interviewed and/or surveyed about their business experiences in Los Angeles while being faced with rent control. I want to bring this to your attention so that if you have any questions about this process you may contact us. You just might be one of the lucky ones randomly chosen for this important program.
The RSO has not been reviewed in over 14 years. We are confident that the results and recommendations that are gleaned from the study will prove that it doesn't work and will be beneficial to the future of the rental property industry and in L.A and across L.A. County. I will update you in future articles.
Relocation Fee Reduction Ordinance Introduced At last, after several weeks of working with members of the Los Angeles City Council and the Chief Legislative Analyst, AAGLA has secured a motion that was introduced to the City Council on Tuesday, August 14, by Councilmembers Dennis Zine and Bernard Parks. The motion instructs the City Attorney to review the April 11 relocation fee ordinance with regard to the inclusion of "good faith" evictions other than those used with the Ellis Act (condo conversion or redevelopment demolitions).
As we all know, the fees for other "good faith" relocations, such as owner occupancy or moving in a resident manager, should not have been included in the new higher fee structure. The introduction of this motion is a major step forward in our effort to reverse the April 11 ordinance. Stay tuned.
AAGLA Plays a Role in Developing New Housing Element
Over the last four months, the Los Angeles City Planning Department has been convening a task force to develop the new Housing Element, as required of all cities by the State of California. I was appointed to serve on the task force and as a CoChair for the Housing Preservation Sub-Committee. Our purpose was to suggest changes or modifications in sections of the current Housing Element and to develop new strategies that would protect the existing housing stock.
We met as a sub-committee several times over a three-month period. The committee was made up of representatives from the housing industry, finance and tenant groups. The debate and discussions were very civil and productive. The committee "agreed" that changes are to be made in such programs as the Primary Renovation, Section 8, Systematic Code Enforcement Program (SCEP), and the Housing Department. Many new finance ideas were presented as well.
Our suggestions will be compiled and analyzed by the Planning Department, which, in turn, will present a draft of the updated Housing Element to the City Planning Commission. It is my hope that we will see some improvements made to the aforementioned programs that will make it easier for affordable housing providers to exist in the City of Los Angeles. I would like to thank AAGLA Vice President Arnie Corlin, Board Member Rick Otterstrom and member Vic Viereck, among others, who participated in our sub‑committee discussions.
Conserving Water — Tenants Should Play (and PAY) Their Part Why is it that owners in rent-controlled areas can get an extra 1% in annual rent increases for electricity and another for gas it either of those utilities are not paid for by tenants, but can't get anything for water? Here we are, in the midst of one of the worst droughts in recent memory, and our state and local governments have not come to grips with the problem. And that problem is? There is absolutely NO REASON for over half of our population to conserve water because they don't PAY anything for it!
The City of Los Angeles is suffering considerably after being required to divert much of our water back into the partially-dried Owens River. So, how do we rectify the problem at the local level? Encourage conservation? Yes. But to truly appreciate the theory of conservation, one must also comprehend the theory of consumption. If something is free, there is no incentive to conserve it.
We can help solve our water shortage problem with one swift move. Let tenants pay for their own water. As it stands today, 60% of L.A.'s population does not pay for their own water. There would be an awful lot of shorter showers and fewer flushes if tenants had to pay for their own water.
Since the Department of Water and Power will not submeter buildings, and it is too expensive for landlords under rent control to do it themselves, owners need to be allowed to, use the Ratio Utility Billing System (RUBS) to charge tenants for the water they use; I have spoken to several members of the L.A. City Council who find the idea intriguing for conservation's sake. Could an idea so rational, fair, and environmentally savvy actually be acceptable to our tenant-minded Housing Department and City Council? We will soon find out because we intend to pursue this proposal vigorously. Stay tuned next month.
Update on Reversing Unfair Tenant Relocation Assistance Fees
This being the hot topic of the summer, I will continue to give you all regular updates. At the time this article was written, AAGLA had received from the L.A. City Chief Legislative Analyst the final draft of a motion to reverse the amounts of "good faith" tenant relocation fees, except those resulting from use of the Ellis Act.
As you may recall, the entire list of "good faith" relocations, including those for owner occupancy, were snuck into the new ordinance which increased tenant relocation fees for condo conversions and redevelopment demolitions. The ordinance was passed on April 11.
Councilmember Dennis Zine has signed the motion and we are seeking another councilmember to second it. If everything came together last month as we anticipate, the motion was introduced during the week of August 13. This motion will reverse relocation fees back to their original amounts. Continue to stay tuned...
Relocation Fee Ordinance Change Introduced At last. After several weeks of wrangling with several members of the City Council and the Chief Legislative Analyst, AAGLA secured a motion that was introduced to the Council yesterday by Councilmembers Zine and Parks. The motion instructs the City Attorney to review the April 11th relocation fee ordinance with regard to the inclusion of "good faith" evictions other than those for use with the Ellis Act — condo conversion or demolition. As we all know, they should not have been included in the new higher fee structure. The introduction of this motion is a major step forward in our effort to reverse the April 11th ordinance. Stay tuned....
Tenant Relocation Assistance Fees Clean-up Motion Drafted
At the time this article was written, we had received a draft motion from the City Legislative Analyst that was submitted by Councilmember Dennis Zine. It will require that "good faith" no-fault relocation assistance fees be lowered to their former levels and continue to be determined by the original formula.
AAGLA made a few modifications that would specify the particular evictions in question, such as owner occupancy and those forced by a government agency. As you know, most of the L.A. City Councilmembers were not aware that the increase in fees would pertain to relocations in cases other than those prompted by the use of the Ellis Act. We expect the motion to be introduced this month if it has not already been introduced. Stay tuned.
AAGLA Gets Excellent Response to Lawsuit Over L.A. Expansion of Rent Control
As I mentioned last month, the Mayor of Los Angeles signed an ordinance into law that subjects new apartment units that are built on former rent‑stabilized property to one of two forms of "price control." AAGLA attorneys are convinced that this policy is a clear violation of the state Costa-Hawkins Rental Housing Act.
On June 22, the California Apartment Law Information Foundation filed a lawsuit against the City on behalf of AAGLA's entire membership.
Since then, we have gotten many calls from our members complimenting this action. Several other business organizations and development companies have offered to help financially or join the lawsuit. We are pleased with this support. Stay tuned for more information as our legal efforts progress through the courts.
Annual Allowable Rent Increases Will Drop in West Hollywood/Santa Monica
Like the one in Santa Monica, West Hollywood's crazy rent formula indicates that the annual allowable rent increase will be dropped from 4% to 2.25% starting September 1, 2007. The figure was approved by the Rent Stabilization Board last month. Santa Monica previously reduced its annual increases to 2.3%.
Cash Rebates on Water-Saving Devices for Multi-Family Property Owners
The Metropolitan Water District (MWD) of Southern California is offering cash rebates to owners of apartments, condominiums, townhouses, duplexes, triplexes, and mobile homes. Rebates will be offered on new high-efficiency toilets ($165 per fixture), ultra-low-flush toilets ($60 per fixture), and high‑efficiency clothes washers ($75 per fixture). For more information on MWD's rebate programs, log on to www.bewaterwise.com and click on the "Save A Buck" icon, or call 1-877-728-2282.
Standing Up for Your Private Property Rights!
AAGLA Sues the City of L.A. Over Illegal Expansion Of Rent Control
On May 30, the Mayor of Los Angeles signed an ordinance into law that would subject new apartment units that are built on former rent-stabilized properties to one of two forms of "price (rent) control." This policy is a clear violation of the state Costa-Hawkins Rental Housing Act. Thus, AAGLA and the California Apartment Law Information Foundation filed a lawsuit against the city last month on behalf of the entire membership.
The ordinance would mandate that newly constructed apartment buildings be either entirely subjected to the rent control ordinance or have a number of units equal to that of the original building — not to exceed 20% of the new units — scheduled as low-income units with rents restricted for tenants who earn 80% or below of the area median income.
If this ordinance is not overturned, there will be an immediate drop in equity in existing buildings as it creates a disincentive for builders and developers to construct new apartments on property that is currently rent stabilized. Ironically, the best other option for them is to construct condominiums instead of affordable apartments.
Is this the way the City Council and the Mayor intend to solve the affordable housing crisis in Los Angeles? What are they thinking? It won't work, and, as is often the case, will have the exact opposite effect.
Tenant Relocation Assistance Fees Motion Being Drafted
At the time this article was written, we were waiting for the motion being drafted by Councilmember Dennis Zine that will require "good faith" relocation assistance fees to be lowered to their original levels and continue to be determined by the original formula. As you may know, most L.A. City Council members were not aware that the increase in fees would pertain to relocations in cases other than those prompted by the use of the Ellis Act. We will continue to push for this reversal. Stay tuned....
Bulky Item Pick-up Program Set For Final Hearing
After several years of debate, compromise, and hard work, the Bulky Item Pick-up Program for multi-family buildings was finally approved by the L.A. City Council on April 25. The final ordinance will be heard on July 17, 2007, at 10:00 a.m. at L.A. City Hall in the City Council Chambers. While we are hesitantly supportive of this long-negotiated compromise; we will still have an opportunity at this public hearing to push for exemptions. Please take the time to come to this meeting in order to voice your opinion.
Annual Allowable Rent Increase Drops In Santa Monica
Santa Monica's crazy rent formula indicated that the annual allowable rent increase will be dropped from 4% to 2.3% starting on September 1, 2007. The figure was approved by the Rent Control Board last month. They also eliminated the cap on the annual increase. A cap has been in place for quite some time. This is obviously mixed news. The annual rent control fee will remain the same at $13 per unit.
We Need Help In Your Community
If you are a member of AAGLA, then you know that legislative advocacy is one of the best benefits you receive from the association. However, we alone cannot fight the good fight to keep this industry viable. We need your help.
Tenant Relocation Assistance Fees Mix-Up
As you may know, the Mayor — with very little fanfare — signed the City Council ordinance to raise the relocation assistance fees for tenants who are displaced when the Ellis Act is used to convert a building to condos or redevelop the property with new apartments. This ordinance achieved our goal of preventing the enactment of a citywide moratorium.
Relocation payments for "qualified" (over 62, children or disabled) tenants will be $14,850 for those with less than three-year tenancies and $17,080 for those with tenancies of more than three years or whose incomes are at 80% or less of the Area Median Income (AMI). For "non-qualified" tenants, the payments will be $6,810 for those with less than three‑year tenancies, and $9,040 for those with over three‑year tenancies or those with 80% or less API incomes.
Unfortunately, without our knowledge or the knowledge of ANY of our nine coalition partners, the ordinance was amended (they say inadvertently, but the LAHD seemed to know about it immediately) to include "good‑faith" relocation evictions, such as moving in a relative or resident manager. We reacted with understandable outrage. Every City Council member we have spoken says they did not know that the "good faith" relocations were included.
Needless to say, during our negotiations with the city for an acceptable compromise to a perceived problem, they were NEVER on the table. Read every article that has been written about this issue. View the record of every hearing, committee meeting and council meeting. They prove our point.
In the meantime, rest assured, as we have commitments from Council members Bernard Parks and Dennis Zine to author "clean up" legislation that will remove "good-faith" relocations from the ordinance. While this may take some time, Housing Committee Chairman Herb Wesson's office has indicated that "it will get fixed." Stay tuned...
Bulky Item Pick‑up Program Approved
After several years of debate, compromise, and hard work, the Bulky Item Pick-up Program for multi‑family buildings was finally approved by the L.A. City Council on April 25. This is a win for AAGLA for the following reason ‑originally the program would have been financed solely by rental property owners and it was going to cost $3.87 per unit per month — OUCH!
After two years of intense educational lobbying and negotiations, we have a program that will clear up the blight that is primarily caused by moving tenants who discard bulky items. In the long run, this program will help maintain or increase property values in the affected areas.
Both owners and tenants will pay a fair share for this service, set at 64 per unit per month. Owners will pay through their water bills while tenants will pay through their electric bills. Stay tuned for more information before the October 1 launch date of this new program.
RSO Study Contract Approved and Funded: AAGLA Oversight Amendment Included
On April 25, the L.A. City Council also approved the funding ($957,000) for a comprehensive study of the Rent Stabilization Ordinance (RSO). This is a monumental achievement as the RSO and its effect on housing in the city have not been reviewed for over 13 years. AAGLA was victorious in amending the study process to include a "citizen oversight group" that will ensure that the data collected is interpreted fairly and properly.
5% Annual Allowable Rent Increase Starts July 1
For the first time since 1992, the LAHD has set the annual allowable rent increase for RSO properties at 5%. Beginning on July 1, 2007, after skyrocketing insurance rates, utility fee hikes, and unacceptable attempts at efficient capital improvement programs by the Housing Department, now, there is, at least, some relief for rental property owners in.; the City of Los Angeles. This is terrific news for AAGLA memT bers after all these years.
Tuesday morning, May 22, the Los Angeles City Council voted to extend price control to newly-constructed apartment buildings constructed on sites that — within the last five years — included demolished rent-controlled apartment units. Pursuant to the ordinance, a developer can choose between two options subsequent to the demolition of a rent-controlled building. The developer can either subject the entire building to rent-control or allocate 20% of the units to those households making 80% AMI or less. Contact me for more information. TENANT RELOCATION ISSUE: At this time, Councilman Wesson (Chair of the Housing Committee) is still not convinced of the urgency regarding removing "good faith" relocations from the Tenant Relocation Assistance ordinance that was passed in April by the L.A. City Council. He would like to wait until the first review of the new rules - in 6 months.
| |||||
James B. Clarke