The City Of Los Angeles Rent Stabilization Ordinance And New Just Cause Ordinance

The City Of Los Angeles Rent Stabilization Ordinance and New Just Cause Ordinance

AUTHOR(S):

Joseph Tobener

Tenant Lawyer & Adjunct Law Professor

Joseph Tobener

22+ years of practicing law. Partner at a Tenant Law Firm. Featured on NYTimes, Reuters, Wired, and the Los Angeles Times.

INFORMATION VERIFIED BY:

Christina Collins

California Tenant Lawyer

Christina Collins

18 years of practicing law. Associate Attorney. Juris Doctor from the Golden Gate University School of Law.

Jacqueline Ravenscroft

California Tenant Lawyer

Jacqueline Ravenscroft

12+ years of practicing law. Partner at a tenant law firm. Tenant-landlord law instructor at San Francisco State University. Featured in the San Francisco Chronicle and Plaintiff Magazine.

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The City of Los Angeles “RSO” and “JCO”

The City of Los Angeles Rent Stabilization Ordinance (“RSO”) regulates how much a landlord can increase a tenant’s rent, and it prohibits eviction of tenants unless the landlord has a just-cause reason under the law to do so.  The ordinance also covers what types of evictions require relocation payments to tenants and regulates buyout agreements.

Additionally, effective January 27, 2023, the City of Los Angeles implemented a new Just Cause Ordinance (“JCO”) that is separate from the Rent Stabilization Ordinance. The JCO provides just-cause eviction protection for most properties that are not covered under the RSO. While the JCO does not regulate how much a tenant’s rent can be increased, it does provide relocation benefits for tenants who move from their unit due to a large rent increase.    

Los Angeles Tenant Lawyers

Tobener Ravenscroft LLP is the leading tenant rights law firm in California and has been in business for over twenty years. The firm serves tenants in Los Angeles and focuses on wrongful evictions, intractable repair issues, landlord harassment, tenant discrimination, landlord sexual harassment, and landlord-caused injuries.

What Communities And Neighborhoods Does The City Of Los Angeles Rent Stabilization Ordinance Cover?

The City of Los Angeles is the largest city in California, and it is divided into many districts and neighborhoods. Tenants that live in the various neighborhoods and districts within the City of Los Angeles may not realize that they are covered by the Rent Stabilization Ordinance.  Areas such as Echo Park, Encino, Highland Park, Hollywood, La Brea, Los Feliz, Northridge, San Pedro, Studio City, Van Nuys, and Venice are all covered by the ordinance. Tenants can check here to determine if they live in the City of Los Angeles.

What Department Oversees The City Of Los Angeles Rent Stabilization Ordinance?

The Los Angeles Housing Department (“LAHD”) oversees the ordinance.  L.A., Cal. Mun. Code § 151.02.  The LAHD investigates violations of the Rent Stabilization Ordinance.  If a tenant believes their landlord has violated the ordinance or if a tenant is living under unsafe or unhealthy conditions, they may file a complaint with LAHD.  

Tenants should keep in mind that for most issues, the LAHD may only investigate a complaint but may not be able to enforce compliance.  Tenants should speak with a tenant attorney to determine what their rights are when their landlord has violated the ordinance. 

What Happens If A Landlord Fails To Register Their Residential Rental Units As Required By The City Of Los Angeles Rent Stabilization Ordinance?

Landlords are required to register their units with the city.  L.A., Cal. Mun. Code § 151.15.  A tenant may defend an eviction action on the basis that their landlord failed to register the property in compliance with the ordinance.  L.A., Cal. Mun. Code § 151.09F.   

What Units Are Protected Under The City Of Los Angeles Rent Stabilization Ordinance?

Almost all multi-unit residential rental structures built before October 1, 1978, are covered under the ordinance for both rent control and eviction protection.  L.A., Cal. Mun. Code § 151.02.

The ordinance does not apply to the following units:

  • Single-family dwellings when the unit is the only property located on a parcel of land.
  • Most buildings built after October 1, 1978 (new construction).
  • Rooms in a motel, hotel, rooming house, or boarding house that have not been occupied by the same tenant for at least 30 consecutive days.
  • Housing accommodations in any hospital, state licensed community care facility, convent, monastery, extended medical care facility, asylum, fraternity or sorority house, or housing accommodations owned, operated or managed by an institution of higher education, a high school, or an elementary school for occupancy by its students.
  • Most affordable housing units.
  • Housing accommodations owned and operated by the Los Angeles City Housing Authority, or accommodations that a government agency or authority owns, operates, or manages and that are specifically exempted from municipal rent regulation by state or federal law or administrative regulation.
  • Luxury housing units classified as exempt by the LAHD. A rental unit is considered a luxury housing accommodation if the landlord obtained a Luxury Exemption Certificate from the LAHD.
  • A dwelling unit in a nonprofit stock cooperative while occupied by a shareholder tenant of the nonprofit stock cooperative.
  • Units in a limited equity housing cooperatives when the property is occupied by a member tenant of the cooperative, unless the cooperative acquired the property from a government entity.
  • A mobile home park for which a permit to operate was first issued on or after February 10, 1986. 
  • Recreational vehicles where a tenant has occupied the vehicle and resided in the park for less than nine continuous months.
  • Housing accommodations in an Interim Motel Housing Project subject to and operating in accordance with a Supportive Housing or Transitional Housing contract.

Tenants who do not live in a rental unit that falls under the purview of the city’s RSO may have rights under the City of Los Angeles Just Cause Ordinance or the California Tenant Protection Act of 2019, which is the state’s rent control and eviction control law.  See below for further information.

Can Newly Constructed Units Ever Fall Under The Protections Of The City Of Los Angeles Rent Stabilization Ordinance?

Yes, newly constructed units that were built to replace ones that were originally covered under the ordinance may also be subject to rent control.  L.A., Cal. Mun. Code § 151.28.  If a building under rent control is withdrawn and demolished through an Ellis Act and new rental units are constructed on the property and offered for rent within five years of the Notice of Intent to Withdraw, the landlord may establish the initial rental rate for the newly constructed units, but the property will then be subject to rent control.  Id.

However, the newly constructed replacement units may be exempt from rent control if the demolished building was four or less units and the owner of the building is a natural person who resided in the building for three consecutive years prior to demolition.  Id.

Are Mobile Homes And Recreational Vehicles Covered Under The City Of Los Angeles Rent Control Ordinance? 

Yes, mobile homes and recreational vehicles are covered under the ordinance but there are differences in the application of rent control to these types of units.  Tenants residing in a mobile home or RV should contact a tenant attorney to understand what protections they have under the ordinance.

Does My Tenancy Fall Under The State Of California Tenant Protection Act Of 2019 Or The City Of Los Angeles Rent Stabilization Ordinance?

The rent-ceiling and just-cause eviction protections under the California Tenant Protection Act of 2019 (“California Rent Control”) apply to all units in the City of Los Angeles that are not covered by the City of Los Angeles Rent Stabilization Ordinance and that otherwise meet the requirements of state rent control.  In general, the city’s rent-ceiling and just-cause for eviction protections apply to multi-unit buildings built before October 1, 1978.  If your Los Angeles building was built after October 1, 1978, or is one of the many exempt buildings under the city’s ordinance, please read our guide to determine if your unit is covered by State of California Rent Control rent caps and just-cause eviction protection.

Because the City of Los Angeles Rent Stabilization Ordinance is complicated, tenants should speak to a tenant attorney to determine if their unit falls under local or state rent control.


ALLOWABLE RENT INCREASES UNDER THE CITY OF LOS ANGELES RENT STABILIZATION ORDINANCE

How Much Can My Rent Be Increased Under The City Of Los Angeles Rent Stabilization Ordinance?

A tenant’s rent may only be increased once every twelve months and cannot exceed the annual rent increase percentage determined by the Rent Adjustment Commission (“RAC”).  L.A., Cal. Mun. Code § 151.06.  Because the allowable rent increase percent changes every year, tenants should contact the LAHD to determine the percent or use the LAHD’s rent increase calculator to determine their increase amount.

Can My Rent Be Increased Under The City Of Los Angeles Rent Stabilization Ordinance Because My Landlord Pays For Utilities?

Yes, if your landlord pays all the costs of electricity and/or gas services for a rental unit then the rent may be increased annually an additional 1% for each such service paid by the landlord, not to exceed a total of 2%.  Id.  This type of increase does not require approval from the LAHD.

Can My Landlord Increase My Rent Under The City Of Los Angeles Rent Stabilization Ordinance If I Add A New Roommate To My Unit?

Yes, your landlord can raise your rent 10% for each additional tenant added to the unit that increases the number of tenants that existed at the beginning of the tenancy.  L.A., Cal. Mun. Code § 151.06(G).  For your landlord to take advantage of this increase, the rent must be raised within sixty days of the landlord’s knowledge of the additional tenant or the right to the increase is waived.  Id.  If the additional tenant moves out, there must be a corresponding decrease.  Id.  This type of increase does not require approval from the LAHD.

Tenants should note that the first minor dependent child added to the household is not subject to this 10% increase.  Id. 

Are Landlords Allowed To “Bank” Rent Increases Under The City Of Los Angeles Rent Stabilization Ordinance?

The ordinance does not allow a landlord to “bank” rent increases not taken annually and impose them at a later date.  However, when a tenant’s rent has not been increased for many years, the landlord may impose a substantial increase without seeking LAHD permission in the following circumstances only:

  1. If there has not been a rent increase since May 31, 1976, the tenant’s rent may be increased up to 19%, plus 2% if the landlord provides the gas and electricity.  L.A., Cal. Mun. Code § 151.06A.
  2. If here has not been a rent increase since May 31, 1977, the tenant’s rent may be increased up to 13%, plus 2% if the landlord provides the gas and electricity.  L.A., Cal. Mun. Code § 151.06B.

What Types Of Rent Increases Require The Approval Of The LAHD Under The City Of Los Angeles Rent Stabilization Ordinance?

A landlord may increase a tenant’s rent for the following reasons as long as they have obtained approval from the LAHD:

  1. The Seismic Retrofit Program – Per the Soft-Story Ordinance No. 183893, landlords can recover costs for mandatory seismic retrofit work.
  2. The Primary Renovation Program – Per the Tenant Habitability Plan Bulletin, landlords can recover costs for major renovations of building systems or to reduce exposure to hazardous materials.
  3. The Rehabilitation Program – Per the Rent Adjustment Commission Regulation 250, landlords can recover costs for work in a unit or common area to comply with an order issued by LAHD or other government entities.
  4. The Capital Improvement Program – Per the Rent Adjustment Commission Regulation 210, landlords can recover costs for improvements to the rental unit or common areas for items that benefit the tenant and will last at least five years.
  5. The Just and Reasonable Rent Increase Program – Per the Rent Adjustment Commission Regulation 240, landlords can apply for a rent increase when their net operating income adjusted for inflation is not sufficient to cover the property’s operating expenses.

JUST-CAUSE EVICTION PROTECTIONS UNDER THE CITY OF LOS ANGELES RENT STABILIZATION ORDINANCE

What Units Are Protected Under The Eviction Protections Under The City Of Los Angeles Rent Stabilization Ordinance?

All units subject to the rent-control provisions of the ordinance also have eviction protection under the City’s Rent Stabilization Ordinance.  L.A., Cal. Mun. Code § 151.09.  Generally, this means that a tenant has eviction protection if they live residential rental structure constructed before October 1, 1978.  

What Are The Just-Cause Reasons For Eviction Under The City Of Los Angeles Rent Stabilization Ordinance?

A landlord must have a just-cause reason to terminate a tenancy covered by the City of Los Angeles Rent Stabilization Ordinance.  L.A., Cal. Mun. Code § 151.09.  If a landlord does not have one of the permissible reasons for eviction, they cannot force a tenant out of their home.

The following are the for-fault reasons for eviction:

  1. Failure to pay rent.
  2. Failure to fix or address a violation of the rental agreement.  A tenant is not in violation of this section if the tenant added another person to the unit, exceeding the number of occupants allowed on the original lease, as long as the additional tenant is either the first or second dependent child to join the existing tenancy of a tenant of record or a sole additional adult tenant.  Multiple births shall be considered as one child.  The landlord has the right to approve or disapprove the prospective additional tenant, who is not a minor dependent child, provided that the approval is not unreasonably withheld. The landlord may also be able to raise the tenant’s rent in some circumstances.
  3. Committing or permitting a nuisance, or causing damage to the rental unit.
  4. Using the rental unit for an illegal purpose.
  5. Failure to renew a similar rental agreement.
  6. Failure to provide the landlord reasonable access to the rental unit.
  7. The person at the end of the lease term is a subtenant not approved by the landlord. 
  8. The tenant refuses to temporarily vacate or enter into a permanent relocation agreement after the landlord has met requirements for Primary Renovation Work pursuant to a Tenant Habitability Plan approved by the LAHD.  L.A., Cal. Mun. Code § 151.09.

The following are the no-fault reasons for eviction:

  1. The landlord seeks in good faith to recover possession of the property for their own occupancy, for the landlord’s spouse, children, grandchildren, parents or grandparents, or for the occupancy of a resident manager. (Owner Move-In, Relative Move-In, or Resident Manager Move-In eviction)
  2. The landlord seeks in good faith to demolish or permanently remove the property from the rental market (Ellis Act eviction).
  3. The landlord seeks in good faith to comply with a government agency’s order to vacate.
  4. The property is HUD owned and the tenants must vacate the property prior to its sale.  
  5. The rental unit is in a residential hotel and the landlord has obtained approval from the LAHD to convert (i.e., change the use) the unit or demolish the unit.
  6. The landlord seeks in good faith to recover possession of the unit to convert the property to affordable housing.  Id.
  7. The unit requires permanent eviction due to a Primary Renovation Work plan in accordance with a Tenant Habitability Plan accepted by the LAHD.  L.A., Cal. Mun. Code § 152.05.

What Assistance Does The LAHD Provide When A Landlord Intends To Do An Owner, Relative, Or Resident Manager Move-In Eviction Under The City Of Los Angeles Rent Stabilization Ordinance?

After the landlord files a declaration of their intent to evict with the LAHD, a case will be opened and assigned to an LAHD analyst, and it will be referred to the City’s Relocation Consultant.  The LAHD analyst ensures that procedures and requirements are followed by the landlord and will answer any questions a tenant may have about the case.  The relocation consultant is responsible for interviewing the tenant to determine whether the unit is eligible for eviction, whether the tenant is a protected tenant, what relocation amount the tenant is entitled to, and the consultant will provide listings of replacement units to the tenant.

What Requirements Must Be Met By The Landlord To Evict A Tenant Through An Owner, Relative, Or Resident Manager Move-In Under The City Of Los Angeles Rent Stabilization Ordinance?

An owner must comply with the following requirements:

  • The owner must be a natural person (not a corporation, partnership, limited partnership, association, or trust company).
  • The owner must own at least 25% of the property or own 50% if they are evicting to move an eligible family member into the unit.  The ordinance is silent on percentage of ownership to move a resident manager into a unit.
  • The owner, their family member, or the resident manager must have good-faith intentions to move into the unit within three months after the tenant vacates.
  • The owner, their family member, or a resident manager must live in the unit as their primary residence for at least two years.
  • The owner must have no comparable vacant unit at the property.
  • The unit must be an eligible unit, which means that it is occupied by the most recent tenant to move into the building and the unit has the number of bedrooms needed by the landlord.  L.A., Cal. Mun. Code § 151.30.

Am I Protected From An Owner, Relative, Or Resident Manager Move-In Eviction Under The City Of Los Angeles Rent Stabilization Ordinance?

The only unit that is eligible for an owner, relative, or resident manager move-in eviction is the unit that has the most recent tenant to move into the building and that unit must have the number of bedrooms the landlord needs.  Id. 

If a tenant lives in an eligible unit but has continuously resided in the unit for at least ten years, and is either 62 years old or older, or is disabled as defined in Title 42 United States Code Section 423, or is handicapped as defined in Section 50072 of the California Health and Safety Code, the tenant is protected and the landlord cannot evict for an owner, relative, or resident manager move-in.  Id.  Also, a tenant who is certified by their treating physician as terminally ill is protected, regardless of their length of tenancy.  Id.

How Much Notice Am I Entitled To For An Owner, Relative, Or Resident Manager Move-In Eviction Under The City Of Los Angeles Rent Stabilization Ordinance?

If you have resided in the unit for one or more years, you are entitled to a sixty days’ written notice.  Cal. Civ. Code § 1946.1.​  If you have resided in the unit for less than a year, you are entitled to a thirty-days’ written notice.  Id.  

Do I Have A Right To Reoccupy My Unit If My Landlord Re-Rents It During The Two-Year Period After I Vacate Due To An Owner, Relative, Or Resident Manager Move-In Under The City Of Los Angeles Rent Stabilization Ordinance?

If your landlord re-rents the unit within two years after you vacate, your landlord must file a Notice of Intent to Re-Rent with the LAHD.  L.A., Cal. Mun. Code § 151.30.  The landlord must then offer the unit back to you if you had stated in writing to the landlord, within 30 days of your displacement, your desire to re-rent the unit.  Id.  Landlords must inform tenants of the offer to renew their tenancy through certified mail.  Id.  Tenants have 30 days to respond to the offer.  Id.

A change in resident managers during the two years after the tenant vacates will not be considered a re-rental of the unit.  Id.

Tenants should note that the ordinance is silent on whether the unit must be offered to you at the same lawful rent amount in effect at the time of the eviction notice if you were displaced due to an owner, relative, or resident manager move-in.  

If a tenant believes their landlord acted in bad faith to get them to vacate their rent-controlled unit, they should speak to a tenant lawyer to determine what their rights are. 

What Assistance Does The LAHD Provide When A Landlord Intends To Do An Ellis Act Eviction Under The City Of Los Angeles Rent Stabilization Ordinance?

If a landlord wants to remove the property from the rental market or demolish it, they must first file their Notice of Intent to Withdraw with the LAHD and submit the notice and a memorandum of withdrawal to the County Recorder’s Office.  L.A., Cal. Mun. Code § 151.23.  Landlords must act in good faith and must demolish or remove from the rental market the entire building and all units.  Id. 

Once the landlord’s intent is filed with the LAHD, a case will be opened and assigned to an analyst, and it will be referred to the City’s Relocation Consultant.  The LAHD’s analyst ensures that procedures and requirements are followed by the landlord and will answer any questions a tenant may have about the case.  The relocation consultant is responsible for interviewing the tenant to determine whether the unit is eligible for eviction, whether the tenant is a protected tenant, what relocation amount the tenant is entitled to, and the analyst will provide listings of replacement units to the tenant.

How Much Notice Am I Entitled To For An Ellis Act Eviction Under The City Of Los Angeles Rent Stabilization Ordinance?

Within five days of the owner filing their intent to withdraw with the LAHD, a tenant must be served a notice of eviction.  Id.  Tenants are entitled to a 120-Day Notice of Eviction unless they are a protected tenant, which would entitle the tenant to a one-year extension.  Id.

Am I Protected From An Ellis Act Eviction Under The City Of Los Angeles Rent Stabilization Ordinance?

Generally, tenants are not protected from an Ellis Act eviction, but a tenant may be entitled to a longer notice period.  Id.  If you are at least 62 years old or are disabled as defined in Government Code Section 12955.3 and have resided in your rental unit for at least one year you may be entitled to a one-year extension.  Id.  To request the extension, you must give your landlord a written notice within 60 days of their Notice of Intent being filed with the LAHD.  Id.

If I Am Evicted Through An Ellis Act Eviction And My Landlord Intends To Re-Rent My Unit, Do I Have A Right To Reoccupy It Under The City Of Los Angeles Rent Stabilization Ordinance?

If your landlord re-rents your unit after you were evicted through an Ellis Act eviction, your landlord must offer the unit back to you at the same lawful rent in effect at the time the landlord’s intent to withdraw notice was filed with the LAHD, plus any allowed annual adjustments, if you had stated in writing to the landlord, within 30 days of your displacement, your desire to re-occupy the unit.  L.A.,  Cal. Mun. Code § 151.23 – 151.27.  Landlords must inform tenants of their right to reoccupy through certified mail.  Id.  Tenants have 30 days to respond to the offer.  Id.

If a tenant believes their landlord acted in bad faith to get them to vacate their rent-controlled unit, they should speak to a tenant attorney to determine what their rights are. 

What Is A Post-Ellis Act “Replacement Unit” Under The City Of Los Angeles Rent Stabilization Ordinance?

If a building is demolished due to an Ellis Act and new rental units are constructed on the property and offered for rent within five years of the filing of the Notice of Intent to Withdraw, the owner may establish the initial rent amount for the units, but the units will be subject to all the provisions of the Rent Stabilization Ordinance.  L.A., Cal. Mun. Code § 151.28.

An owner of a property may apply for an exemption with the LAHD to this section for the following properties:

  • An owner may file for an exemption to the Rent Stabilization Ordinance if the building had four or fewer units and the owner occupied a unit in the demolished building for three years before the intent to withdraw was filed.  If the building has not yet been demolished, the owner may file for an exemption if the building to be demolished has four or fewer units and the owner occupied a unit in the building for three consecutive years prior to filing an application for exemption.  Id.
  • An owner may apply for an exemption if they do a one-for-one replacement of demolished rental units that were covered under the Rent Stabilization Ordinance with affordable housing units, or if they replace at least 20% of the total number of newly constructed rental units with affordable housing units, whichever is greater.  Id.

What Is An Eviction For Primary Renovation Work Under The City Of Los Angeles Rent Stabilization Ordinance?

The Tenant Habitability Program (“THP”) assists landlords in facilitating a Primary Renovation Work plan to address uninhabitable conditions in a unit.  The THP helps to either ensure that tenants can safely remain in place during construction or helps facilitate a temporary relocation of tenants to alternative housing.  L.A., Cal. Mun. Code § 152.06.  

Primary Renovation Work consists of replacement or substantial modification of any structural, electrical, plumbing or mechanical system that requires a permit, and/or abatement of hazardous materials, such as lead-based paint and asbestos, in accordance with applicable federal, state, and local laws.  Id.  A Tenant Habitability Plan must be submitted to and approved by the LAHD before the Primary Renovation Work plan can be implemented.  Id.

In some instances, the tenant may be able to stay in the unit during the construction.  However, if the work will cause the tenant to vacate for more than 30 days, the tenant can elect to terminate their rental agreement and accept permanent relocation benefits as discussed below.  Id.  Otherwise, the tenant may be temporarily relocated by the landlord to a comparable unit if the relocation will be more than 30 days or to a hotel if the relocation will be for less than 30 days.  Id.  Relocated tenants must continue to pay rent.  Id.  The parties can also voluntarily enter into a per diem relocation fee agreement in lieu of temporary replacement housing.  Id.


NO-FAULT EVICTION RELOCATION BENEFITS UNDER THE CITY OF LOS ANGELES RENT STABILIZATION ORDINANCE

How Much Are The Relocation Benefits For No-Fault Evictions Under The City Of Los Angeles Rent Stabilization Ordinance?

Tenants that are evicted for a no-fault reason under the ordinance are entitled to relocation benefits.  L.A., Cal. Mun. Code § 151.09G.  The amount of relocation is determined by the LAHD and depends on how long a tenant has lived in the building, how old they are, how much money they earn, and whether they are an eligible tenant or a qualified tenant. 

Eligible tenant – Unless a tenant is a qualified tenant, the tenant is an eligible tenant entitled to receive a relocation assistance amount that depends on length of time in the unit and their income.

Qualified tenant – A qualified tenant is any tenant who on the date of service of the written notice of termination is at least 62 years old or is physically disabled, as defined in Section 50072 of the California Health and Safety Code, or is disabled as defined in Title 42 of the United States Code, Section 423, or who has one or more minor dependent children as determined for federal income tax purposes.

Low Income Tenant – A tenant whose income is 80% or less of the Area Median Income as defined by the U.S. Department of Housing and Urban Development, regardless of the length of tenancy.  

Do All Tenants In The Unit Receive Relocation Benefits Under The City Of Los Angeles Rent Stabilization Ordinance?

Tenants should be aware that relocation payments are per unit, not per tenant.  If there is more than one tenant in the unit, each tenant will be entitled to a pro-rata share of the payment.  If more than one fee payment applies, the landlord must pay the higher amount.   

What Is A “Mom And Pop” Operation And How Does That Designation Affect Relocation Payments Under The City Of Los Angeles Rent Stabilization Ordinance?

A “Mom and Pop” landlord is a landlord who owns no more than one building with four or less units and one single-family home on a separate lot in the City of Los Angeles.  L.A., Cal. Mun. Code § 151.30E.  A reduced relocation payment may apply if a tenant who resides in “Mom and Pop” property is evicted due to an owner move-in or relative move-in eviction, the landlord has not paid the reduced relocation amount to any tenant within the last three years, and if a relative will be moving into the unit, the relative does not own any residential property in the City of Los Angeles. Id.

What Are The Relocation Benefit Amounts Under The City Of Los Angeles Rent Stabilization Ordinance?

Relocation amounts effective July 1, 2023, through June 30, 2024:

 TenantResided in Unit Less Than Three YearsResided in Unit Three or More YearsTenants Qualifying Under HUD Low Income LimitsTenants Renting Units in Mom & Pop Properties
Eligible$9,900$12,950$12,950$9,500
Qualified$20,850$24,650$24,650$19,150

When Must Relocation Payments Be Made Under The City Of Los Angeles Rent Stabilization Ordinance?

Relocation assistance payments must be made available to the tenant within fifteen days of service of the written notice to terminate the tenancy. 

Can A Tenant Appeal The LAHD’s Relocation Decision Under The City Of Los Angeles Rent Stabilization Ordinance?

Yes.  Both the tenant and the landlord have a right to appeal the relocation consultant’s determination of the amount due to the tenant.  The appeal must be filed within fifteen calendar days from the date of the determination. 


BUYOUT REGULATIONS IN THE CITY OF LOS ANGELES

What Is A Buyout Agreement Under The City Of Los Angeles Rent Stabilization Ordinance?

A buyout agreement is a written agreement where a landlord and a tenant agree for the landlord to pay the tenant money to voluntarily move out of their rent-controlled unit. 

What Requirements Must Be Followed For A Landlord To Offer A Tenant A Buyout Under The City Of Los Angeles Rent Stabilization Ordinance?

The Tenant Buyout Notification Program provides for regulation, monitoring, and enforcement of voluntary vacancies of rent-controlled rental units that occur through a buyout agreement.  L.A., Cal. Mun. Code § 151.31. 

Before making a buyout offer, the landlord must disclose to the tenant their rights under the Rent Stabilization Ordinance and the Disclosure Notice must be filed with the LAHD.  Id.  Also, the agreement must be written in the primary language of the tenant, must contain a statement in twelve-point bold language above the signature line that notifies the tenant of the tenant’s right to rescind (cancel) without consequence within thirty days of executing the agreement, and must be filed with LAHD within sixty days of both parties signing.  Id.


PENALTIES FOR A LANDLORD WHO VIOLATES THE LAW — CITY OF LOS ANGELES RENT STABILIZATION ORDINANCE

Can I Sue My Landlord For Violating The Rent-Ceiling Protections Under The City Of Los Angeles Rent Stabilization Ordinance?

A tenant whose landlord has violated the ordinance’s rent-control provisions may bring a lawsuit against their landlord.  L.A., Cal. Mun. Code § 151.10.  A landlord that demands, accepts, or retains rent in excess of the allowed amount under the ordinance shall be liable to the tenant for three times the amount charged in excess, plus reasonable attorney fees and costs as determined by the court.  Id.

A landlord in violation of any provision of the ordinance may also be guilty of a misdemeanor and punished by a fine of up to $1,000 or up to six months in jail.  Id.

Can I Sue For Wrongful Eviction Under The City Of Los Angeles Rent Stabilization Ordinance?

If a landlord acts in bad faith to make a tenant vacate their rent-controlled unit for an owner, relative, or resident manager move-in, the tenant may sue their landlord for a wrongful eviction.  Los Angeles, Cal. Mun. Code § 151.30.  The landlord may be liable to the tenant for their actual damages, punitive damages, and attorney fees.  Id.  A tenant’s damages are trebled (tripled) under the ordinance.  Id.

If a tenant is evicted through an Ellis Act eviction and the landlord re-rents the property within two years of the tenant’s vacate date, the landlord can be liable to the tenant for actual and punitive damages.  L.A.,  Cal. Mun. Code § 151.25.

Can I Sue My Landlord For Violating The Tenant Habitability Plan Under The City Of Los Angeles Rent Stabilization Program?

A tenant may sue their landlord for violation of this section of the ordinance.  L.A., Cal. Mun. Code § 152. 07.  The landlord may be liable to the tenant for actual damages, special damages in an amount not to exceed the greater of twice the amount of actual damages or $5,000, and reasonable attorney’s fees and costs as determined by the court.  Id.  Treble (triple) damages may be awarded for willful failure to comply with the payment obligations, to provide safe, decent and sanitary temporary replacement housing, or to allow a tenant to reoccupy a rental unit once the primary work is completed.  Id.

Can I Sue My Landlord For Violating The Buyout Regulations Under The City Of Los Angeles Rent Stabilization Ordinance?

A tenant may bring a lawsuit against their landlord if they violate the buyout regulations.  L.A., Cal. Mun. Code § 151.31.  The landlord will be liable to the tenant for actual damages plus a penalty of $500.  Id.


NEW CITY OF LOS ANGELES JUST CAUSE ORDINANCE (“JCO”)

When Did The City of Los Angeles Just Cause Ordinance Go Into Effect?

The City of Los Angeles Just Cause Ordinance went into effect on January 27, 2023. L.A., Cal. Mun. Code § 165.00.

What Is The Difference Between The City Of Los Angeles Rent Stabilization Ordinance And The New Just Cause Ordinance?

The Rent Stabilization Ordinance (“RSO”) provides both rent control and just-cause eviction protection for residential structures built before October 1, 1978.  If your unit is not covered under the RSO, you may have protections under the Just Cause Ordinance (“JCO”).  

The JCO provides just-cause eviction protections for most non-RSO properties, but the new ordinance does not provide rent control.  The new ordinance does entitle a tenant to relocation benefits if they are forced to move due to a large rental increase of more than 10%. 

While tenants who fall under the JCO do not have rent control under the new city law, their annual rent increases may be capped under the California Tenant Protection Act of 2019, which is the state’s rent control law.  Please read our guide to determine if your unit is protected by State of California Rent Control annual rent increase caps.


JUST-CAUSE EVICTION PROTECTIONS UNDER THE CITY OF LOS ANGELES JUST CAUSE ORDINANCE

What Units Are Protected Under The City Of Los Angeles Just Cause Ordinance?

The City of Los Angeles Just Cause Ordinance protects almost all non-RSO units in the city unless the unit falls under one of the exemptions below.  L.A., Cal. Mun. Code § 165.04.

The ordinance does not apply to the following units:

  • Units that fall under the Rent Stabilization Ordinance (“RSO”). 
  • Transient and tourist hotel occupancy rooms where maid service, mail or other room services are provided.
  • Hospitals, asylums, religious facilities, extended care facilities, and licensed residential care facilities for the elderly.
  • Fraternity or sorority houses or any housing accommodation owned and operated by an institution of higher education, a high school, or elementary school for occupancy by students.
  • Owner-occupied units where the tenant shares a bathroom or kitchen with the owner.
  • Units in a nonprofit stock cooperative if occupied by a shareholder tenant of the nonprofit stock cooperative.
  • Units in limited equity housing cooperatives, as defined in California Civil Code Sections 817 and 817.1, when occupied by a member tenant of the limited equity housing cooperative. But, if the cooperative acquired the property pursuant to California Government Code Section 54237(d), then all dwellings in the limited-equity housing cooperative shall be exempt from this Article and fall under protections.
  • Interim Motel Housing Project units pursuant to Los Angeles Municipal Code Section 14.00 A.12. This exception shall apply only to housing accommodations that have been issued an exemption by the Department.
  • Units in a nonprofit facility that has the primary purpose of providing short term treatment, assistance, or therapy for alcohol, drug, or other substance abuse and the housing is provided incident to the recovery program.
  • Units in a nonprofit facility that provides a structured living environment that has the primary purpose of helping homeless persons obtain the skills necessary for independent living in permanent housing.
  • Units leased by or otherwise paid for by a government entity or agency with the primary purpose of helping homeless persons obtain temporary or transitional housing.
  • Units owned and operated by the Los Angeles City Housing Authority, or housing accommodations owned, operated, or managed by any other government unit, agency, or authority. Id.

When Do Protections Begin Under The City Of Los Angeles Just Cause Ordinance?

Protections begin at the expiration of an initial original lease or after six months of continuous and lawful occupancy, whichever comes first.  L.A., Cal. Mun. Code § 165.04.

What Are The Just-Cause Reasons For Eviction Under The City Of Los Angeles Just Cause Ordinance?

A landlord must have a just-cause reason to terminate a tenancy covered by the City of Los Angeles Just Cause Ordinance.  L.A., Cal. Mun. Code § 165.03.  If a landlord does not have one of the permissible reasons for eviction, they cannot force a tenant out of their home.

The following are the for-fault reasons for eviction:

  1. Failure to pay rent.
    • Tenants cannot be evicted for nonpayment of rent unless the tenant owes more than one month’s worth of Los Angeles metro area fair market value rent set by HUD.
  2. Failure to fix or address a violation of the rental agreement.
    • A tenant is not in violation of this section if the tenant added another person to the unit, exceeding the number of occupants allowed on the original lease, as long as the additional tenant is either the first or second dependent child to join the existing tenancy of a tenant of record or a sole additional adult tenant.  Multiple births shall be considered as one child. The landlord has the right to approve or disapprove the prospective additional tenant, who is not a minor dependent child, provided that the approval is not unreasonably withheld. The landlord may also be able to raise the tenant’s rent in some circumstances.
    • A tenant is not in violation of this section for a violation of a landlord’s unilateral change in the terms of the tenancy unless the tenant had agreed to the change in writing and the writing is signed by both parties. 
    • A landlord shall not change the terms of a tenancy to prohibit pets, unless the landlord can establish that the pet constitutes a nuisance, and the nuisance has not been abated upon proper notice to the tenant.  
  3. Committing or permitting a nuisance or causing damage to the rental unit.
  4. Using the rental unit for an illegal purpose.
  5. Failure to renew a similar rental agreement.
  6. Failure to provide the landlord reasonable access to the rental unit.
  7. The person at the end of the lease term is a subtenant not approved by the landlord. 

The following are the no-fault reasons for eviction:

  1. The landlord seeks in good faith to recover possession of the property for their own occupancy, for the occupancy of landlord’s relative, or for the occupancy of a resident manager. (Owner Move-In, Relative Move-In, or Resident Manager Move-In eviction)
    • Resident manager move-in applies to a resident manager, janitor, housekeeper, caretaker, or other responsible person who is required to reside upon the premises by law or under the terms of an affordable housing covenant or regulatory agreement.
    • Eligible relatives are for a relative move-in: landlord’s spouse, domestic partner, grandchildren, children, parents, or grandparents.
  2. The landlord seeks in good faith to:
    • Demolish the unit.
    • Substantially remodel the unit, provided the landlord has secured permits necessary to substantially remodel and has served a copy of the permits with a written termination notice stating the reason for termination, the type and scope of the work to be performed, why the work cannot be reasonably accomplished in a safe manner with the tenant in place, and why the work requires the tenant to vacate the unit for at least 30 days.
      • Substantially remodel under the JCO has the same definition as California Civil Code section 1946.2, which means “the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.”
    • Withdrawal  of the property permanently from rental housing use when the landlord is withdrawing from rent or lease all residential real property on the same parcel of land. 
  3. Compliance with a government agency’s order to vacate.
  4. The property is HUD owned and the tenants must vacate the property prior to its sale when HUD has followed all federal notice requirements to tenant.  
  5. The rental unit is in a residential hotel and the landlord has obtained approval from the LAHD to convert (i.e., change the use) the unit or demolish the unit.
  6. The landlord seeks in good faith to recover possession of the unit to convert the property to affordable housing.
  7. LL seeks in good faith to convert the property to a non-residential use. Id.

What Requirements Must Be Met By The Landlord To Evict A Tenant Through An Owner, Relative, Or Resident Manager Move-In Under The City Of Los Angeles Just Cause Ordinance?

An owner must comply with the following requirements:

  • The owner must be a natural person (not a corporation, partnership, limited partnership, association, or trust company).
  • The owner must own at least 25% of the property or own 50% if they are evicting to move an eligible family member into the unit.  The ordinance is silent on percentage of ownership to move a resident manager into a unit.
  • The owner, their family member, or the resident manager must have good-faith intentions to move into the unit within three months after the tenant vacates.
  • The owner, their family member, or a resident manager must live in the unit as their primary residence for at least two years.
  • The owner must have no comparable vacant unit at the property.
  • The unit must be an eligible unit, which means that it is occupied by the most recent tenant to move into the building and the unit has the number of bedrooms needed by the landlord.  L.A.,  Cal. Mun. Code § 165.03.

Am I Protected From An Owner, Relative, Or Resident Manager Move-In Eviction Under The City Of Los Angeles Just Cause Ordinance?

The only unit that is eligible for an owner, relative, or resident manager move-in eviction is the unit that has the most recent tenant to move into the building and that unit must have the number of bedrooms the landlord needs.  Id. 

If a tenant lives in an eligible unit but has continuously resided in the unit for at least ten years, and is either 62 years old or older, or is disabled as defined in Title 42 United States Code Section 423, or is handicapped as defined in Section 50072 of the California Health and Safety Code, the tenant is protected and the landlord cannot evict for an owner, relative, or resident manager move-in.  Id.  Also, a tenant who is certified by their treating physician as terminally ill is protected, regardless of their length of tenancy.  Id.

How Much Notice Am I Entitled To For An Owner, Relative, Or Resident Manager Move-In Eviction Under The City Of Los Angeles Just Cause Ordinance?

If you have resided in the unit for one or more years, you are entitled to a sixty-days’ written notice.  Cal. Civ. Code § 1946.1.​  If you have resided in the unit for less than a year, you are entitled to a thirty-days’ written notice.  Id.  

Do I Have A Right To Reoccupy My Unit If My Landlord Re-Rents It During The Two-Year Period After I Vacate Due To An Owner, Relative, Or Resident Manager Move-In Under The City Of Los Angeles Just Cause Ordinance?

If your landlord re-rents the unit within two years after you vacate, they must file a Notice of Intent to Re-Rent with the LAHD and offer the unit back to you, provided that you advised your landlord in writing within 30 days of your displacement that you would like to return if the unit is re-rented .  L.A., Cal. Mun. Code § 165.03.   The offer to renew your tenancy must be provided by your landlord via certified mail, and you will have thirty days to respond to the offer.  Id.  The ordinance is silent on whether the unit must be offered to you at the same lawful rent amount in effect at the time of the eviction notice.

A change in resident managers during the two years after you vacate will not be considered a re-rental of the unit.  Id.


NO-FAULT EVICTION RELOCATION BENEFITS UNDER THE CITY OF LOS ANGELES JUST CAUSE ORDINANCE

How Much Are The Relocation Benefits For No-Fault Evictions Under The City Of Los Angeles Just Cause Ordinance?

Tenants who are evicted for a no-fault reason under the ordinance are entitled to relocation benefits.  L.A., Cal. Mun. Code § 165.06.  The amount of relocation is determined by the LAHD and depends on how long a tenant has lived in the building, how old they are, how much money they earn, and whether they are an eligible tenant or a qualified tenant. 

Eligible tenant – Unless a tenant is a qualified tenant, the tenant is an eligible tenant entitled to receive a relocation assistance amount that depends on length of time in the unit and their income.

Qualified tenant – A qualified tenant is any tenant who on the date of service of the written notice of termination is at least 62 years old or is physically disabled, as defined in Section 50072 of the California Health and Safety Code, or is disabled as defined in Title 42 of the United States Code, Section 423, or who has one or more minor dependent children as determined for federal income tax purposes.

Low Income Tenant – A tenant whose income is 80% or less of the Area Median Income as defined by the U.S. Department of Housing and Urban Development, regardless of the length of tenancy.

What Is A “Mom And Pop” Operation And How Does That Designation Affect Relocation Payments Under The City Of Los Angeles Just Cause Ordinance?

A “Mom and Pop” landlord is a landlord who owns no more than one building with four or less units and one single-family home on a separate lot in the City of Los Angeles. L.A., Cal. Mun. Code § 165.06.  A reduced relocation payment may apply if a tenant who resides in “Mom and Pop” property is evicted due to an owner move-in or relative move-in eviction, the landlord has not paid the reduced relocation amount to any tenant within the last three years, and if a relative will be moving into the unit, the relative does not own any residential property in the City of Los Angeles. Id.

What Are The Relocation Benefit Amounts Under The City Of Los Angeles Just Cause Ordinance?

Relocation amounts effective July 1, 2023 through June 30, 2024:

 TenantResided in Unit Less Than Three YearsResided in Unit Three or More YearsTenants Qualifying Under HUD Low Income LimitsTenants Renting Units in Mom & Pop PropertiesSingle-family Homes
Eligible$9,900$12,950$12,950$9,500One month’s rent
Qualified$20,850$24,650$24,650$19,150One month’s rent

Tenants should note that the relocation assistance is one month’s rent if the landlord is a natural person who owns no more than four residential units and a single-family home on a separate lot in the City of Los Angeles.


RELOCATION FOR ECONOMIC DISPLACEMENT UNDER THE CITY OF LOS ANGELES JUST CAUSE ORDINANCE

Although the JCO does not limit how much a tenant’s rent can be raised, if a tenant receives a rent increase of more than 10% within a twelve-month period and must move out because they are unable to afford the increase, the tenant can receive relocation assistance. L.A., Cal. Mun. Code § 165.09.

What Are The Relocation Benefit Amounts Under The City Of Los Angeles Just Cause Ordinance For An Economic Displacement?

Relocation amounts effective July 1, 2023 through June 30, 2024:

Studio1-bedroom unit2-bedroom unit3-bedroom unit4-bedroom unitSingle-family Homes
$6,013$6,652$8,077$10,075$10,921One month’s rent

Tenants should note that the relocation assistance is one month’s rent if the landlord is a natural person who owns no more than four residential units and a single-family home on a separate lot in the City of Los Angeles.


PENALTIES FOR A LANDLORD WHO VIOLATES THE LAW — CITY OF LOS ANGELES JUST CAUSE ORDINANCE

Tenants can raise an affirmative defense in an eviction if the landlord failed to comply with any provision of the City of Los Angeles Just Cause Ordinance.  L.A., Cal. Mun. Code § 165.07.

If the landlord did not pay relocation benefits required by the ordinance, tenants can sue for the relocation amount, plus reasonable attorney fees and costs. Id.


WHEN SHOULD I CALL A TENANT RIGHTS LAWYER?

The City of Los Angeles Rent Stabilization Ordinance and the new City of Los Angeles Just Cause Ordinance are complicated.  Tenants should call Tobener Ravenscroft LLP at (415) 504-2165 to speak with a tenant attorney if they have any questions about their local laws or if they believe their landlord has violated the ordinances.

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