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(Amended by Ord. No. 175,940, Eff. 6/7/04.)
For a rental unit for which the Systematic Code Enforcement Fee has been paid pursuant to Section 161.352 of the Los Angeles Municipal Code, the landlord may demand and collect a rental surcharge from the tenant of the rental unit as follows:
A. For the period from January 1, 2004 until May 31, 2004, a landlord may collect one dollar per month from the tenant of the rental unit.
B. For the period from June 1, 2004 until June 30, 2004, a landlord may collect $3.16 per month from the tenant of the rental unit.
C. For the period from July 1, 2004 until December 31, 2004, a landlord may collect $3.18 per month from the tenant of the rental unit.
D. For the period from January 1, 2005, until December 31, 2021, a landlord may collect 1/12 of the annual Systematic Code Enforcement Fee from the tenant of the rental unit per month. (Amended by Ord. No. 187,108, Eff. 8/6/21.)
E. Effective January 1, 2022, a landlord may collect 1/12 of 50% of the annual Systematic Code Enforcement Fee from the tenant of the rental unit per month. (Added by Ord. No. 187,108, Eff. 8/6/21.)
This Section shall only apply to landlords who have paid all outstanding Systematic Code Enforcement Fees and charges imposed pursuant to Section 161.903.2 of this Code. (Amended by Ord. No. 181,744, Eff. 7/21/11.)
The Rent Adjustment Commission shall have the authority to adopt any regulations necessary to implement this section.
(Title Amended by Ord. No. 153,552, Eff. 5/1/80; Section Amended by Ord. No. 154,237, Eff. 8/30/80, Oper. 9/1/80.)
The maximum rent or maximum adjusted rent for a rental unit may be increased without permission of the Rent Adjustment Commission or the Department, as follows:
A. For a rental unit which has not had a rent increase since May 31, 1976 (other than one imposed pursuant to Section 3B(5) or (6) of Ordinance No. 151,415, as amended and/or Section 151.07 of this chapter:
Prior to any increase pursuant to Subsection D. of the section, a landlord may increase the maximum rent by an amount not to exceed 19%, but if the landlord pays all the costs of electricity and/or gas services for a rental unit, then the maximum or maximum adjusted rent may be increased an additional 1% for each such service paid by the landlord. Thereafter, the rent may be adjusted automatically only in accordance with Subsections C. and D.
B. For a rental unit which has not had a rent increase since May 31, 1977 (other than one imposed pursuant to Section 3B(5) or (6) of Ordinance No. 151,415, as amended, and/or Section 151.07 of this chapter) but which did have a rent increase within one year prior to that date:
Prior to an increase pursuant to Subsection D. of this section, a landlord may increase the maximum rent by an amount not to exceed 13%, but if the landlord pays all the costs of electricity and/or gas services for a rental unit, then the maximum or maximum adjusted rent may be increased an additional 1% for each such service paid by the landlord. Thereafter, the rent may be adjusted automatically only in accordance with Subsections C. and D. below.
C. (Amended by Ord. No. 181,744, Eff. 7/15/11.) Where all of the tenants have vacated a rental unit subject to the provisions of this Article, the following provisions apply:
1. The landlord may increase the maximum rent or maximum adjusted rent to any amount upon re-rental of the unit in any of the following circumstances:
(a) the rental unit was vacated voluntarily.
(b) the rental unit was vacated as a result of the landlord’s termination of tenancy pursuant to Subdivisions 1., 2., 9. or 13. of Subsection A. of Section 151.09 of this Code.
(c) the rental unit was vacated as a result of the landlord’s termination of tenancy pursuant to Subdivisions 3. or 4. of Subsection A. of Section 151.09 of this Code, and
i. The landlord served a written notice required to terminate tenancy on the tenant prior to the City Attorney commencing a court action against the tenant pursuant to Section 47.50 of this Code; and
ii. The eviction or termination of tenancy is based upon information provided by a law enforcement or prosecution agency that the tenant is committing or permitting to exist any gang-related crime, violent crime, unlawful weapon or ammunition crime, threat of violent crime, illegal drug activity or drug-related nuisance as those terms are defined in Section 47.50 of this Code. Thereafter, so long as the rental unit continues to be rented to one or more of the same persons, no other rent increase shall be imposed pursuant to this Subsection.
2. The landlord may only offer and rent the rental unit at the lawful rent in effect at the time of the most recent termination of tenancy plus annual adjustments available under Section 151.06 of this Article in any of the following circumstances:
(a) The rental unit is vacated as a result of the termination of the Housing Assistance Payment Contract between the landlord and the Housing Authority of the City of Los Angeles because of the landlord’s failure to comply with the contractual obligations required by law.
(b) The rental unit was vacated as a result of the landlord’s termination of tenancy pursuant to Subdivision 5., 6., 7., 8., 10., 11. or 12. of Subsection A. of Section 151.09 of this Code, or pursuant to Subdivisions 3. or 4. of Subsection A. of Section 151.09 of this Code except as otherwise provided under Subparagraph c. of Subdivision 1. of Subsection C. of this Section;
(c) The rental unit was vacated as a result of the landlord creating an unreason- able interference with the tenant’s comfort, safety or enjoyment of the rental unit;
(d) The rental unit is vacated voluntarily by a tenant who was the next tenant after an eviction pursuant to Subdivision 8. of Subsection A. of Section 151.09 of this Code;
(e) The rental unit is vacated as a result of the termination of the regulation of the rental unit under any local, state or federal program;
(f) The rental unit is the subject of a notice of noncompliance sent to the Franchise Tax Board pursuant to Section 17274 of the Revenue and Taxation Code, and the violations that were the subject of the notice have not been corrected;
(g) If the rental unit is the subject of a notice of acceptance into the Rent Escrow Account Program issued pursuant to Section 162.00, et seq., of this Code, until the unit is removed from the Rent Escrow Account Program and for one year thereafter, or until expiration of the period called for under Section 161.807, if applicable, whichever is later, the property owner/ landlord or any subsequent property owner/ landlord shall not increase the rent for any current or any subsequent tenant except as provided by the Costa Hawkins Rental Housing Act, Civil Code Section 1954.50, et seq., and/or any other applicable law. (Amended by Ord. No. 184,446, Eff. 9/28/16.)
(h) The rental unit is the subject of a criminal conviction related to the landlord’s failure to comply with a citation or order issued by the Los Angeles Housing Department, Los Angeles Department of Building and Safety, Los Angeles Fire Department, or Department of Health with respect to the subject rental unit, and the conditions that caused the conviction have not been corrected. (Amended by Ord. No. 187,122, Eff. 8/8/21.)
3. If the rental unit is vacated as a result of a removal of the rental unit from rental housing use pursuant to Subdivision 10. of Subsection A. of Section 151.09 of this Code, the landlord must comply with the requirements of Sections 151.22 through 151.28 of this Code, including applicable limitations on the amount of rent.
D. For a rental unit which at any time on or after the operative date of this chapter has not had a rent increase for a period of 12 consecutive months or more (other than one lawfully imposed pursuant to Section 3.B.(5) or (6) of Ordinance No. 151,415, as amended), and/or pursuant to Subsection E. of this section and/or pursuant to Section 151.07 of this chapter: (Amended by Ord. No. 184,822, Eff. 4/30/17.)
The maximum rent or maximum adjusted rent may be increased in an amount based on the Consumer Price Index – All Urban Consumers averaged for the twelve (12) month period ending September 30, of each year, as determined and published by the Department on or before May 30, of each year, pursuant to Section 151.07 A.6. of this chapter. This annual adjustment may be applied to any annual rent increase which first becomes effective on or before July 1, through June 30, of each year. If the landlord pays all the costs of electricity and/or gas services for a rental unit then the maximum rent or maximum adjusted rent may be increased an additional one percent (1%) for each such service paid by the landlord, not to exceed a total of two percent (2%). If a rent increase had been imposed pursuant to Subsection A., B., C. or F.1., of this section, then no rent increase may be imposed pursuant to this subsection until twelve (12) consecutive months or more have elapsed since such rent increase. (Amended by Ord. No. 159,908, Eff. 6/30/85 Oper. 7/1/85.)
EXCEPTION: (Amended by Ord. No. 170,445, Eff. 5/6/95, Oper. 7/5/95.)
This subsection shall not apply in the following circumstances:
If the rental unit is the subject of a notice of noncompliance sent to the Franchise Tax Board pursuant to Section 17274 of the Revenue and Taxation Code, and the violations that were the subject of the Notice have not been corrected; or
If the rental unit is the subject of a notice of rent reduction or a Notice of Acceptance issued pursuant to this chapter, and the conditions that caused the placement have not been corrected; or
If the rental unit is the subject of a criminal conviction related to the landlord’s failure to comply with a citation or order issued by the Department of Building and Safety, Fire Department, or Department of Health with respect to the subject rental unit, and the conditions that caused the conviction have not been corrected.
E. (Amended by Ord. No. 154,808, Eff. 2/13/81.) For a rental unit which had an automatic rent adjustment between May 1, 1980 and August 31, 1980, inclusive, and for which the landlord pays all the costs of electricity and/or gas services for a rental unit:
The maximum rent or maximum adjusted rent may be increased 1% for each such service paid by the landlord. A landlord may not increase rent pursuant to this subsection on or after May 1, 1981.
F. (Added by Ord. No. 158,891, Eff. 6/4/84.) For a rental unit, which is the site within a mobilehome park (hereafter “site”) on which a mobilehome is located and is vacated by all the tenants after the operative date of this subsection;
1. Except as otherwise provided in this subsection, if the mobilehome on the site is vacated voluntarily or as a result of an eviction or termination of tenancy based on one or more of the grounds described in Section 151.09 A.1., A.2. or A.9., and the mobilehome is permanently removed from the site, then the maximum rent or maximum adjusted rent may be increased to any amount upon the re-rental of the site. Thereafter, as long as the site continues to be rented to one or more of the same persons, no other rent increase shall be imposed pursuant to this subdivision.
However, this subdivision shall not apply in the following circumstances:
a. If the mobilehome has been temporarily removed for repairs; or
b. If the mobilehome has been replaced with a new mobilehome that one or more of the same tenants will occupy.
2. If the site is voluntarily vacated by all the tenants as a result of a sale of the mobile- home, and the mobilehome is not removed from the site, then the maximum rent or maximum adjusted rent may be increased by an amount not to exceed the rent on any existing comparable site in the park, or ten percent (10%), whichever is the lower. A comparable site for the purposes of this subdivision shall be a site within the same park which has a mobilehome located on it which is substantially the same size (single, double or triple wide) as the mobilehome that was sold.
Thereafter, as long as the site continues to be rented to one or more of the same persons, no other rent increase shall be imposed pursuant to this subdivision. The rent may only be increased pursuant to this subdivision once in any twelve consecutive month period.
G. (Amended by Ord. No. 181,744, Eff. 7/15/11.) For a rental unit which has an additional tenant joining the occupants of the rental unit thereby resulting in an increase in the number of tenants existing at the inception of the tenancy:
(a) The landlord may increase the maximum rent or maximum adjusted rent by an amount not to exceed 10% for each additional tenant that joins the occupants of the rental unit, except as follows:
(i) This Subsection shall not apply if the landlord had actual or constructive knowledge of the additional tenant’s occupancy of the rental unit for more than 60 days and has failed to notify the tenant of the increase pursuant to this Subsection;
(ii) If the additional tenant joined the occupants of the rental unit prior to the effective date of this amendment and the landlord had actual or constructive knowledge of the additional tenant’s occupancy of the rental unit prior to the effective date of this amendment, the landlord shall not be able to increase the rent pursuant to this Subsection unless the landlord had notified the tenant of the increase within 60 days of the effective date of this amendment;
(iii) This Subsection shall not apply for the first minor dependent child (or first minor dependent children of a multiple birth) added to an existing tenancy.
(b) The rental unit shall not be eligible for a rent increase until the additional tenant has maintained residence in the rental unit for a minimum of thirty consecutive days.
(Added by Ord. No. 166,368, Eff. 12/6/90.)
A. Security deposit is defined in Section 1950.5 of the California Civil Code.
B. (Amended by Ord. No. 174,017, Eff. 7/16/01.) A landlord who is subject to the provisions of Section 1950.5 of the California Civil Code shall pay annually interest on all security deposits held for at least one year for their tenants as follows:
1. (Amended by Ord. No. 175,020, Eff. 2/1/03.) Beginning January 1, 2003, the landlord may determine the annual rate of interest by either of the following methods:
(a) Using the annual rate of interest established by the Rent Adjustment Commission (RAC). That rate shall be based on the average of the interest rates on savings accounts paid on September 1 of the previous year, by at least five Federal Deposit Insurance Corporation (FDIC) insured banks with branches in Los Angeles. RAC shall adopt the rate by November 30 of each year and shall publish that rate in a newspaper of general circulation within one week after it is established each year. The interest rate established by the RAC shall be the rate in effect from January 1 through December 31 of the subsequent year.
(b) Using the actual interest earned on each security deposit account each year. If the landlord chooses this method of determining the amount of interest due at the time of payment of the security deposit interest, the landlord shall provide the tenant with bank statements indicating the amount of interest earned on the security deposit for that year. In the event the landlord fails to provide that information to the tenant at the time it transmits payment of the interest to the tenant, the interest rate required to be paid, shall be the rate set by RAC.
(c) No interest shall accrue on security deposits for the period of January 1, 2002 through December 31, 2002.
2. The annual interest rate shall be 2% simple interest per annum for tenants’ security deposits held during the period of January 1, 2001, through December 31, 2001.
3. The annual interest rate shall be 5% simple interest per annum for tenants’ security deposits held during the period of November 1, 1990, through December 31, 2000.
4. The Los Angeles Housing Department (“LAHD”) shall identify the established interest rate in the annual rental unit registration billings mailed to landlords. LAHD shall publish the established interest rate in a newspaper of general circulation. (Amended by Ord. No. 187,122, Eff. 8/8/21.)
C. (Amended by Ord. No. 174,017, Eff. 7/16/01.) Interest shall begin accruing on November 1, 1990, on a monthly basis. A tenant shall be given the unpaid accrued interest in the form of either a direct payment or a credit against the tenant’s rent. The landlord shall choose between these two methods of payment and notify the tenant in writing of the landlord’s choice. The landlord may elect to pay the accrued interest on a monthly or yearly basis.
D. Upon termination of tenancy, only the tenant whose security deposit has been held for one year or more shall be entitled to payment of any unpaid accumulated interest on the security deposit. Such payment shall be made at the same time and in the same manner as required for return of security deposits in California Civil Code Section 1950.5(f).
E. Upon termination of a landlord’s interest in a property, all accumulated interest on security deposits shall be disposed of in the same manner as required for security deposits by California Civil Code Sections 1950.5(g) and (h).
F. Nothing herein shall preclude a landlord from exercising their discretion in investing security deposits.
G. In the event the landlord fails to pay interest on the security deposit as provided in this section, the tenant may bring an action for recovery of the amount owed in a court of the appropriate jurisdiction including, but not limited to, small claims court.
H. The provisions of this section shall not govern mobile home parks.
(Added by Ord. No. 154,808, Eff. 2/1/81.)
A. For a rental unit in which the landlord installs smoke detectors pursuant to Section 91.8603.1.1 or Section 91.8603.1.2 or Section 91.8603.2.1 or Section 91.8603.2.2 of this Code: (Amended by Ord. No. 181,744, Eff. 7/15/11.)
The rent may be increased 50 cents ($.50) per month for each battery operated smoke detector installed in the rental unit, or three dollars ($3) per month for each permanently installed smoke detector in the rental unit, or the landlord may apply for a rent adjustment pursuant to Subsection A of Section 151.07 of this chapter. This surcharge shall not constitute a rent increase for purposes of Section 151.06 of this chapter.
B. This rent surcharge may be collected at the above rate until the actual cost to the landlord of purchase and installation has been recovered. This subsection shall not apply to a rental unit which becomes eligible for a rent increase pursuant to Section 151.06 C. of this chapter subsequent to the installation of the smoke detector. The Commission shall promulgate regulations on what constitutes eligible expenses in computing such actual cost.
C. Within two months after installation, or by May 31, 1981, whichever is later, the landlord must give written notice to the tenant paying the surcharge of the actual purchase and installation costs of the smoke detector and the month and year when said costs will have been completely amortized.
(Added by Ord. No. 166,707, Eff. 4/1/91.)
If a landlord is assessed financial penalties pursuant to the Emergency Water Conservation Plan of the City of Los Angeles, the landlord is entitled to partially pass through those penalties to tenants in the form of a temporary rent surcharge. This surcharge shall not constitute a rent increase for purposes of Section 151.06 of this chapter.
A. A landlord may partially pass through the financial penalties assessed by the Department of Water and Power under the Emergency Water Conservation Plan in the following amount and manner, and in accordance with the regulations adopted by the Rent Adjustment Commission.
1. The landlord shall be entitled to a rent increase in the form of a surcharge of fifty percent (50%) of the penalties assessed.
2. For mobilehome parks that are not separately submetered, the owner of the mobilehome park shall be entitled to pass through seventy-five percent (75%) of the assessed penalties. For mobilehome parks that are submetered, the owner of the park may apportion any assessed penalties in accordance with Rent Adjustment Commission regulations.
B. A landlord shall not close on-premises coin operated laundry facilities during the duration of the Emergency Water Conservation Plan.
SEC. 151.06.5. REDUCTIONS IN RENT.
(Repealed by Ord. No. 173,810, Eff. 4/16/01.)
A. Authority of the Department.
1. The Department, in accordance with such regulations and guidelines as the Commission may establish, shall have the authority to grant adjustments in the rent for a rental unit or units located in the same housing complex upon receipt of an application for an adjustment filed by the landlord of the unit or units if it finds that one or more of the grounds set forth in this Subdivision exist. Nothing in this Section shall prevent the Department from granting rent adjustments under more than one provision of this Section, provided the rent adjustments are for different work or improvements. The Department shall not grant a rent adjustment for a rental unit under more than one provision of this Section for the same work or improvement. The Department shall not process any applications for rent adjustments under this Section if the landlord has not paid all outstanding fees imposed pursuant to Section 151.05, Section 161.352 and Section 161.901 of this Code. (Amended by Ord. No. 184,080, Eff. 2/19/16.)
a. That on or after April 1, 1978, the landlord has completed a capital improvement with respect to a rental unit and has not increased the rent to reflect the cost of such improvement. If the Department so finds, the landlord shall be entitled to a permanent monthly rent increase of 1/60th the average per unit capital improvement cost; provided, however, any rent adjustment for a capital improvement granted by the Department between February 13, 1981, and May 31, 1982, shall terminate after five (5) years.
Except that, for any capital improvement work for which a rent increase application is filed with the Department on or after October 1, 1989 the landlord shall only be entitled to a temporary monthly rent increase of 1/60th of fifty percent (50%) of the average per unit capital improvement cost for a period not to exceed six (6) years.
This temporary monthly surcharge shall not exceed $55.00 per month for each rental unit unless agreed upon in writing by a landlord and a tenant. If the surcharge, as calculated under the above formula, would exceed $55.00 per month, then the surcharge period of six (6) years may be extended until the allowable capital improvement expenses are recovered. This surcharge shall not be included as part of the Maximum Adjusted Rent for purposes of calculating the automatic rent adjustment pursuant to Section 151.06 D.
Any capital improvement rent increase or surcharge approved by the Department shall terminate if the Department determines that there has been a complete failure of a capital improvement. The Commission may adopt regulations to implement this provision.
For the purposes of this provision, Seismic Retrofit Work shall not qualify as a Capital Improvement.
EXCEPTION:
This paragraph shall not apply in the following circumstances:
If the rental unit is the subject of a notice of noncompliance sent to the Franchise Tax Board pursuant to Section 17274 of the Revenue and Taxation Code, and the work is to correct the violations that were the subject of the Notice.
If the rental unit is the subject of a notice of rent reduction or a notice of acceptance into the Rent Escrow Account Program issued pursuant to Section 162.00, et seq. of this Code, and the work is to correct the conditions that caused the placement.
If the rental unit is the subject of a criminal conviction related to the landlord’s failure to comply with a citation or order issued by the Department, the Department of Building and Safety, Fire Department, or Department of Health with respect to the subject rental unit, and the work is to correct the conditions that caused the conviction.
b. That on or after April 1, 1978, the landlord has completed rehabilitation work with respect to a rental unit and has not increased the rent to reflect the cost of the improvement. If the Department so finds, the landlord shall be entitled to a permanent monthly rent increase of 1/60th of the average per unit rehabilitation cost; provided, however, any rehabilitation work begun prior to June 1, 1982, shall be entitled to rent increases of 1/36 of the average per unit rehabilitation cost. Moreover, any rental adjustment for rehabilitation work granted by the Department between February 13, 1981 and May 31, 1982, shall terminate after 3 years.
Except that, for any rehabilitation work for which a rent increase application is filed with the Department on or after January 1, 1999, the landlord shall only be entitled to a temporary monthly rent increase of 1/60th of the average per unit rehabilitation cost for a period not to exceed five years, provided, however, where the landlord has obtained a rehabilitation loan, the landlord shall only be entitled to a temporary monthly rent increase amortized over the life of the loan which is calculated based only on the loan’s principal.
This temporary monthly surcharge shall not exceed $75.00 per month or 10% of the Maximum Adjusted Rent, whichever is less, for each rental unit unless agreed upon in writing by a landlord and a tenant. If the surcharge, as calculated under the above formula, would exceed $75.00 per month or 10% of the Maximum Adjusted Rent, whichever is less, then the surcharge period of five years may be extended until the allowable rehabilitation expenses are recovered. If the landlord receives a loan made with public funds to do the rehabilitation work, and that loan allows for deferment of the loan repayment, the surcharge shall also be deferred for the same amount of time. This surcharge shall not be included as part of the Maximum Adjusted Rent for purposes of calculating the automatic rent adjustment pursuant to Section 151.06 D.
Any rehabilitation rent increase or surcharge approved by the Department shall terminate if the Department determines that there has been a complete failure of the rehabilitation work. The Commission may adopt regulations to implement this provision.
For the purposes of this Paragraph, work required for compliance with Section 91.8805 of this Code shall not be eligible as rehabilitation work.
For the purposes of this provision, Seismic Retrofit Work shall not qualify as Rehabilitation Work.
c. That on or after the effective date of this amendment, the landlord has completed Primary Renovation Work and any Related Work in conformance with a Tenant Habitability Plan accepted by the Department and has not increased the rent to reflect the cost of such improvement. For the purposes of this provision, any portion of the Primary Renovation Work and Related Work paid for with public funds is not eligible for this monthly rent increase until the landlord is immediately obligated to repay the public funds.
If the Department so finds, the landlord shall be entitled to a permanent monthly rent increase that shall not exceed the lesser of:
(i) 100% of the Average Per Unit Primary Renovation Work Cost amortized in accordance with a term schedule established by the Commission and an interest rate corresponding to the monthly composite rate for average yields from the sale of ten-year constant maturity U.S. government securities plus one full percentage point; or
(ii) 10% of the Maximum Adjusted Rent at the time an application for a rent increase was filed.
The maximum 10% rent increase permissible under this provision may be imposed no more than once during the tenancy of any tenant household with an annual income at or below 80% of the Area Median Income as established by the U.S. Department of Housing and Urban Development for the Los Angeles- Long Beach primary metropolitan statistical area. For all other tenants, the Commission may promulgate regulations with respect to the number of times during any tenancy that the maximum 10% rent increase may be imposed.
For the purposes of this provision, costs associated with Primary Renovation Work shall include the documented incurred costs for Primary Renovation Work, Related Work, and temporary relocation of tenants undertaken in accordance with an accepted Tenant Habitability Plan.
Any rent increase granted pursuant to this provision shall be imposed in two equal increments over a two-year period. Upon receipt of the Department’s approval of a primary renovation rent increase, the landlord may impose the first increment after providing notice to each affected tenant pursuant to Section 827 of the California Civil Code. The second increment may be imposed no earlier than 12 calendar months after the first increment is imposed and after providing notice to each affected tenant pursuant to Section 827 of the California Civil Code.
For the purposes of this provision, Seismic Retrofit Work shall not qualify as Primary Renovation Work.
EXCEPTION:
This paragraph shall not apply in the following circumstances:
If the rental unit is the subject of a notice of noncompliance sent to the Franchise Tax Board pursuant to Section 17274 of the Revenue and Taxation Code, and the work is to correct the violations that were the subject of the Notice.
If the rental unit is the subject of a notice of rent reduction or a Notice of Acceptance into the Rent Escrow Account Program issued pursuant to Section 162.00, et seq. of this Code, and the work is to correct the conditions that caused the placement.
If the rental unit is the subject of a criminal conviction related to the landlord’s failure to comply with a citation or order issued by the Department, the Department of Building and Safety, Fire Department, or Department of Health with respect to the subject rental unit, and the work is to correct the conditions that caused the conviction.
If the rental unit is the subject of a citation or order from a government agency to abate hazardous materials and the citation or order is issued before the acceptance of a Tenant Habitability Plan by the Department.
d. That on or after the effective date of this amendment, the landlord has completed Seismic Retrofit Work and any Related Work in conformance with a Tenant Habitability Plan accepted or waived by the Department and has not increased the rent to reflect the cost of such improvement. For the purposes of this provision, any portion of the Seismic Retrofit Work and Related Work paid for with public funds is not eligible for this monthly rent increase until the landlord is immediately obligated to repay the public funds.
If the Department so finds, the landlord shall be entitled to a temporary monthly rent surcharge that shall be 50% of the Average Per Unit Seismic Retrofit Work Cost amortized over 120 months in accordance with a term schedule established by the Commission and an interest rate corresponding to the monthly composite rate for average yields from the sale of ten-year constant maturity U.S. government securities plus one full percentage point; provided, however, that any rent adjustment for Seismic Retrofit Work granted by the Department shall terminate after ten (10) years.
Except that a temporary monthly rent surcharge shall not exceed $38.00 per month for each rental unit unless agreed upon in writing by and between a landlord and a tenant. If the temporary monthly rent surcharge, as calculated under the above formulas, would exceed $38.00 per month, then the temporary monthly rent surcharge period of ten (10) years may be extended until the allowable Seismic Retrofit Work expenses are recovered. This temporary monthly rent surcharge shall not be included as part of the Maximum Adjusted Rent for purposes of calculating the automatic rent adjustment pursuant to Subsection D. of Section 151.06.
For the purposes of this provision, costs associated with Seismic Retrofit Work shall include the documented incurred costs for Seismic Retrofit Work, Related Work, and temporary relocation of tenants undertaken in accordance with an accepted Tenant Habitability Plan.
For the purposes of this provision, if a landlord obtains and/or receives, at any time, compensation for any portion of the money spent on Seismic Retrofit Work, including, but not limited to, insurance, court-awarded damages, federal or state subsidies, grants, cash rebates, and federal or state tax credits (other than tax deductions and depreciation), this compensation must be deducted from the cost (or remaining cost) of the Seismic Retrofit Work before amortizing the costs among the units.
EXCEPTION:
This paragraph shall not apply in the following circumstances:
If the rental unit is the subject of a notice of noncompliance sent to the Franchise Tax Board pursuant to Section 17274 of the Revenue and Taxation Code, and the work is to correct the violations that were the subject of the Notice.
If the rental unit is the subject of a notice of rent reduction or a Notice of Acceptance into the Rent Escrow Account Program issued pursuant to Section 162.00, et seq. of this Code, and the work is to correct the conditions that caused the placement.
If the rental unit is the subject of a criminal conviction related to the landlord’s failure to comply with a citation or order issued by the Department, the Department of Building and Safety, Fire Department, or Department of Health with respect to the subject rental unit, and the work is to correct the conditions that caused the conviction.
If the rental unit is the subject of a citation or order from a government agency to abate hazardous materials and the citation or order is issued before the acceptance of a Tenant Habitability Plan by the Department.
2. Procedures for Departmental Review of Adjustment Requests. (Amended by Ord. No. 184,080, Eff. 2/19/16.)
a. Applications. An application for a rent adjustment under this subsection shall be made within twelve months after the completion of the work. The application shall be filed with the Department upon a form and with the number of copies prescribed by the Department and shall include, among other things, the addresses and unit numbers of the unit or units for which an adjustment was requested. If the rent adjustment request is the result of the same Capital Improvement, Primary Renovation Work, Seismic Retrofit Work, or Rehabilitation Work, the application may include all rental units in a housing complex for which an application for a rent increase is filed.
The applicant shall produce at the request of the Department such records, receipts or reports as the Department may deem necessary to make a determination on the adjustment request. Failure to produce requested items shall be sufficient basis to terminate the rent adjustment proceedings. All applications shall be accompanied by a declaration stating that the above information is true and correct.
An application for a rent adjustment under this subsection shall be accompanied by a $25.00 filing fee. The landlord shall not recover this filing fee from any tenant. The requirement to pay this fee shall not apply to the first application for the housing complex made by a landlord within a calendar year pursuant to this subsection.
b. Notice. Upon receipt of a completed rent adjustment application under the provisions of Subsections a., b., c., d., or e. of Section 151.07(A)(1) of this Code, the Department shall notify the tenant or tenants of the subject unit or units by mail of the receipt of such application, the amount of the requested rent increase, the landlord’s justification for the request, a tenant’s right to submit written objections to the adjustment request within 10 days of the date of mailing such notice, and of the address to which the objections may be mailed or delivered.
c. The Department shall, within 60 days of the receipt of a completed application, make a determination on the application for rent adjustment. The determination shall be either to approve, modify, or disapprove the requested rent adjustment. Copies of the findings and determination of the Department shall be mailed by the Department to the applicant and all affected tenants. Said findings and determination shall provide that any rent increases approved on or after January 1, 1981 for capital improvements, rehabilitation work begun prior to June 1, 1982, or Seismic Retrofit Work shall not be included as part of the Maximum Adjusted Rent for purposes of computing rent increases pursuant to Section 151.06 of this chapter.
3. Requests for Hearing.
a. The determination of the Department shall be final unless a request for hearing is filed by or on behalf of the applicant or an affected tenant, and such request is received by the Department within 15 days after the mailing of the findings and determination. A request for hearing shall be in writing and filed in the office of the Department upon a form and with the number of copies required by the Department. Each request for hearing shall be accompanied by a filing fee in the amount of $35.00. (Amended by Ord. No. 164,167, Eff. 12/12/88.)
b. A request for hearing shall set forth specifically, wherein the requesting party believes there was error or abuse of discretion by the Department in ruling on the application for a rent increase. Additionally, a request for hearing may be made based on new, relevant information which was not submitted to the Department at the time of the initial determination due to mistake, surprise, inadvertence, or excusable neglect, and which information would have affected the determination of the Department if it had been submitted earlier. The filing of a request for hearing by a tenant or tenants will not stay the effect of the determination of the Department. However, any increase collected by the landlord pursuant to the Department’s determination but not approved by the hearing officer shall be forthwith refunded by the landlord to the tenant or tenants from whom such rent increases were collected, or offset by the landlord against the next legally due rental payment. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.)
c. If a request for hearing is received by the Department within the 15 day period, then the requested hearing shall be held within 30 days of the receipt of the request by a hearing officer designated by the Department. Notice of the time, date and place of the hearing shall be mailed by the Department to the applicant and tenants of the subject rental units at least 10 days prior to the hearing date. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.)
d. The hearing shall be conducted by a hearing officer designated by the Department. At the time of the hearing the landlord and/or any affected tenant may offer such documents, testimony, written declarations or evidence as may be pertinent to the proceedings.
e. In making a determination on an application for rent increase, the designated hearing officer shall make a written determination upholding, reversing or modifying the determination of the Department. If the determination is to reverse or modify the determination of the Department, the hearing officer shall specifically set forth the reasons or such reversal or modification.
f. Time Limit. A final decision shall be made by the hearing officer within 45 days of the termination of the time for filing of a request for hearing. The Department shall mail copies of the findings and determination of the hearing officer to the applicant and all affected tenants. Said findings and determination shall provide that any rent increases approved on or after January 1, 1981 for capital improvements or rehabilitation work begun prior to June 1, 1982 shall not be included as part of the maximum adjusted rent for purposes of computing rent increases pursuant to Section 151.06 of this chapter. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.)
4. Limitation on Rent Adjustment. (Added by Ord. No. 154,808, Eff. 2/13/81.)
a. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.) For every rental unit which experiences a rent increase based on capital improvement and/or rehabilitation work begun prior to June 1, 1982 and also approved by the Department after February 13, 1981:
The Department shall mail a notice to the landlord of the rental unit indicating that the Department will issue a written order to the landlord requiring the termination of the rent increase after the cost of the work has been fully recovered, unless it determines that the rental unit became eligible for a rent increase pursuant to Section 151.06 C. or that a reduction in rent would work an undue hardship on the landlord.
b. An application for relief from the proposed order may be made within 30 days after the mailing of the notice in accordance with such procedures as the Commission may establish.
c. For any rental unit for which a capital improvement rent adjustment was granted by the Department between February 13, 1981 and May 31, 1982, and for which a hardship exemption was granted pursuant to Section 151.07 A.4.a., said capital improvement rent adjustment shall terminate upon the effective date of this amendment. The landlord shall, within ten days of the effective date of this amendment, serve a written notice of termination of the capital improvement rent adjustment to all affected tenants setting forth the amount of increase which is to be terminated. (Added by Ord. No. 163,832, Eff. 8/25/88.)
5. The Department in accordance with such guidelines as the Commission may establish, shall have the authority to grant certificates of exemptions for luxury housing accommodations and substantial renovation work In processing an application for exemption, the Department shall afford both landlords and tenants notice and an opportunity to be heard prior to the issuance of a certificate of exemption. An application for a certificate of exemption shall be accompanied by a $25.00 filing fee. After August 31, 1982, no unit shall be exempt pursuant to Sections 151.02 M.7. or M.8. without first obtaining a certificate of exemption. Pending completion of the processing of an application for a certificate of exemption, the Department may issue a temporary certificate of exemption for housing accommodations. (Amended by Ord. No. 164,167, Eff. 12/12/88.)
6. On or before May 30, of each year, the Department shall publish in a newspaper of general circulation the annual rent increase adjustment for any rent increase imposed pursuant to Section 151.06 D. of this chapter for the following twelve (12) month period beginning on July 1 and ending on June 30. The Department shall calculate this adjustment as follows: (Added by Ord. No. 159,908, Eff. 6/30/85, Oper. 7/1/85.)
The annual rent increase adjustment shall be based on the Consumer Price Index – All Urban Consumers for the Los Angeles-Long Beach- Anaheim-SMSA averaged for the previous twelve (12) month period ending September 30 of each year. It shall reflect the change in the Consumer Price Index over the previous consecutive twelve (12) month period expressed as a percentage and rounded off to the nearest whole number. If the calculated adjustment is three percent (3%) or less, the Department shall set the annual rent increase adjustment at three percent (3%) but, if the calculated adjustment is eight percent (8%) or greater, the Department shall set the annual rent increase adjustment at eight percent (8%).
7. Re-rental Certificates. (Repealed by Ord. No. 176,544, Eff. 5/2/05.)
8. The Commission shall promulgate regulations to establish the health, safety, and habitability standards which shall be followed for any Capital Improvement, Primary Renovation Work, Seismic Retrofit Work, Related Work, or Rehabilitation Work performed while a tenant is residing in the rental unit. These regulations shall include, but not be limited to, provisions regarding advanced notification, security, fire standards, pest control, the operation of dangerous equipment, utility interruptions, the use of potentially dangerous construction materials, and the protection of tenants and their property from exposure to natural elements. (Amended by Ord. No. 184,080, Eff. 2/19/16.)
9. The Commission shall have the authority to adopt any regulations necessary to implement this section. (Added by Ord. No. 184,080, Eff. 2/19/16.)
B. Authority of the Commission and Hearing Officers.
1. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.) A designated hearing officer shall have the authority, in accordance with such guidelines as the Commission may establish, to grant increases in the rent for a rental unit, or for two or more rental units located in the same housing complex, upon receipt of an application for adjustment filed by the landlord and after notice and hearing, if the hearing officer finds that such increase is in keeping with the purposes of this chapter and that the maximum rent or maximum adjusted rent otherwise permitted pursuant to this chapter does not constitute a just and reasonable return on the rental unit or units. The following are factors, among other relevant factors as the Commission may determine, which may be considered in determining whether a rental unit yields a just and reasonable return:
a. property taxes;
b. reasonable operating and maintenance expenses;
c. the extent of capital improvements made to the building in which the rental unit is located as distinguished from ordinary repair, replacement and maintenance;
d. living space, and the level of housing services;
e. substantial deterioration of the rental units other than as a result of ordinary wear and tear;
f. failure to perform ordinary repair, replacement and maintenance; and
g. financing costs on the property if such financing was obtained prior to June 1, 1978 and if it contains either a balloon payment or variable rate provision.
2. Anti-Speculation Provision. If the only justification offered for the requested rent increase on the landlord’s application is an assertion that the maximum rents or maximum adjusted rents permitted pursuant to this chapter do not allow the landlord a return sufficient to pay both the operating expenses and debt service on the rental unit or units or on the housing complex containing the rental unit or units, a rent adjustment will not be permitted pursuant to this subsection to a landlord who acquired an interest in the rental unit or units after October 1, 1978.
3. Procedures.
a. An application for rent adjustment shall be submitted on a form and with the number of copies prescribed by the Department and shall include among other things the addresses and unit numbers of the unit or units for which an adjustment is requested. Such application may include all rental units in a housing complex for which a rent increase is requested. Each application shall be accompanied by a $25.00 filing fee. An applicant shall produce at the request of the Department or hearing officer to whom the matter is assigned such records, receipts or reports as the Department or hearing officer may deem necessary to make a determination on the adjustment request. Failure to produce such requested items shall be sufficient basis for the Department or hearing officer to terminate the rent adjustment proceeding. All applications shall be accompanied by a declaration stating that the above information is true and correct. (Amended by Ord. No. 164,167, Eff. 12/12/88.)
b. Upon receipt of a completed application, the application shall be referred by the Department to a hearing officer for processing and determination. The Department shall notify by mail the tenant or tenants of the subject unit or units of the receipt of such application, the amount of the requested rent increase, the landlord’s justification for the request, and the place, date and time of the hearing on the adjustment request. The hearing shall be set no less than 10 days nor more than 45 days after the date of mailing such notice.
c. The hearing shall be conducted by a hearing officer designated by the Department. At the time of the hearing the landlord and/or any affected tenant may offer such documents, testimony, written declarations or evidence as may be pertinent to the proceedings.
d. A determination with written findings in support thereof shall be made by the assigned hearing officer within 75 days from the date of the filing of the application. A rent adjustment may be granted for less than, but for no more than the amount requested.
e. Copies of the findings and determination of the hearing officer shall be mailed by the Department to the applicant and all affected tenants. The determination shall become final 15 days from the date of mailing unless an appeal is filed with the Commission within such period. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.)
4. Appeals.
a. Time and Manner. An appeal to the Commission from the determination of a hearing officer may be filed by the applicant or any affected tenant pursuant to this subsection within 15 days after mailing of such determination. Such appeals shall be in writing and shall be filed in the office of the Department upon a form and with the number of copies required by the Commission. Each appeal shall be accompanied by a $50.00 filing fee. An appeal shall set forth specifically wherein the appellant believes there was an error or abuse of discretion by the hearing officer. Additionally, an appeal may be made based on new, relevant information which was not submitted to the hearing officer at the time of the initial determination due to mistake, surprise, inadvertence, or excusable neglect, and which information would have affected the determination of the hearing officer if it had been submitted earlier. The filing of an appeal will not stay the effect of the hearing officer’s determination. However, any rent increases collected by the landlord pursuant to the hearing officer’s determination but not approved on appeal shall be forthwith refunded to the tenant or tenants from whom such rent increases were collected or offset against the next legally due rental payment. (Amended by Ord. No. 164,167, Eff. 12/12/88.)
b. Record on Appeal. Upon receipt of an appeal, the entire administrative record of the matter, including the appeal, shall be filed with the Commission. At any time prior to action on the appeal, the hearing officer may submit to the Commission written comments pertaining to the appeal.
c. Hearing Date and Notice. Upon receipt of the appeal, the Commission shall cause the matter to be set for hearing before three or more Commissioners acting as an appeals board, and notice shall be given by mail of the date, time, place and purpose thereof to the applicant and all affected tenants. Such notice shall be in writing and mailed at least 10 days prior to said hearing. The appeals board shall make its determination within 60 days after the expiration of the appeal period or within such extended period of time as may be mutually agreed upon by the appellant and the designated appeals board. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.)
d. Determination. If the appeals board fails to act within the time limits specified in this section, the determination of the hearing officer shall become final. The decision on appeal shall be concurred in by a majority of the appeals board. The appeals board may affirm, modify or reverse the determination of the hearing officer. It may modify or reverse such determination only upon making written findings setting forth specifically either (i) wherein the action of the hearing officer was in error or constituted an abuse of discretion, or (ii) the new information not available at the time of the hearing upon which the appellant relies, and supporting its own determination. A copy of the findings and determination shall be mailed to the applicant and to affected tenants. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.)
A. In addition to the authority contained in Section 151.07, the Rent Adjustment Commission may make such adjustments, either upward or downward, of the maximum rent or maximum adjusted rent for any class of rental units as it determines are appropriate to carry out the purposes of this chapter. For the purposes of this section, the phrase “class of rental units” may include all rental units or certain categories of rental units based on such common characteristics as the Commission may determine, including size, age, construction, rent, or geographic area.
B. The Commission shall promulgate regulations on what constitutes corresponding reductions in rents in those instances where there is a reduction of housing services, and on permissible rent increases where a rental unit regularly experiences a seasonal fluctuation in rents.
C. For the purpose of adjusting rents under the provisions of this section, the Commission may promulgate by regulation a schedule of standards for permissible rental increases, or required decreases related to the improvement, reduction, or deterioration in housing services or facilities, or to increases or decreases in operating expenses and taxes. A decrease in operating expenses shall include a reclassification of the rate of the sewer service charge from commercial rates to residential rates for master metered mobilehome park residents. (Amended by Ord. No. 168,353, Eff. 1/3/93.)
D. The Commission may promulgate regulations extending the amortization period for rent adjustments granted by the Department pursuant to Section 151.07
A. of this chapter, where the Capital Improvement, Seismic Retrofit Work, and/or Rehabilitation Work has been funded or subsidized through a federal, state or City housing program. (Amended by Ord. No. 184,080, Eff. 2/19/16.)
E. The Commission shall promulgate regulations to determine the appropriate maximum adjusted rent on a rental unit when the tenant of a rental unit was, but no longer is, the resident manager, and when a rental unit, formerly occupied by a resident manager, is offered for rent to another person. (Amended by Ord. No. 156,597, Eff. 5/20/82, Oper. 5/15/82.)
(Amended by Ord. No. 154,237, Eff. 8/30/80, Oper. 9/1/80.)
A. A landlord may bring an action to recover possession of a rental unit only upon one of the following grounds:
1. The tenant has failed to pay rent to which the landlord is entitled, including amounts due under Subsection F. of Section 151.05; provided, however, that the landlord’s right to evict a tenant lawfully in possession of residential housing under this subdivision is limited to defaults in payment where the amount due exceeds one month of fair market rent for the Los Angeles metro area set annually by the U.S. Department of Housing and Urban Development for an equivalent sized rental unit as that occupied by the tenant. The written notice to the tenant required under this section shall state the number of bedrooms in the tenant’s rental unit. (Amended by Ord. No. 187,763, Eff. 3/27/23.)
2. The tenant has violated a lawful obligation or covenant of the tenancy and has failed to cure the violation after having received written notice from the landlord, other than a violation based on: (Amended by Ord. No. 175,130, Eff. 3/31/03.)
(a) The obligation to surrender possession upon proper notice; or
(b) The obligation to limit occupancy, provided that the additional tenant who joins the occupants of the unit thereby exceeding the limits on occupancy set forth in the rental agreement is either the first or second dependent child to join the existing tenancy of a tenant of record or the sole additional adult tenant. For purposes of this section, multiple births shall be considered as one child. The landlord, however, 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; or
(c) A change in the terms of the tenancy that is not the result of an express written agreement signed by both of the parties. For purposes of this section, a landlord may not unilaterally change the terms of the tenancy under Civil Code Section 827 and then evict the tenant for the violation of the added covenant unless the tenant has agreed in writing to the additional covenant. The tenant must knowingly consent, without threat or coercion, to each change in the terms of the tenancy. A landlord is not required to obtain a tenant’s written consent to a change in the terms of the tenancy if the change in the terms of the tenancy is authorized by Los Angeles Municipal Code Section 151.06, or if the landlord is required to change the terms of the tenancy pursuant to federal, state, or local law.
Nothing in this paragraph shall exempt a landlord from providing legally required notice of a change in the terms of the tenancy.
3. (Amended by Ord. No. 180,449, Eff. 2/5/09.) The tenant is committing or permitting to exist a nuisance in or is causing damage to, the rental unit or to the unit’s appurtenances, or to the common areas of the complex containing the rental unit, or is creating an unreasonable interference with the comfort, safety, or enjoyment of any of the other residents of the rental complex or within a 1,000 foot radius ex- tending from the boundary line of the rental complex.
The term “nuisance” as used in this subdivision includes, but is not limited to, any gang-related crime, violent crime, unlawful weapon or ammunition crime or threat of violent crime, illegal drug activity, any documented activity commonly associated with illegal drug dealing, such as complaints of noise, steady traffic day and night to a particular unit, barricaded units, possession of weapons, or drug loitering as defined in Health and Safety Code Section 11532, or other drug related circumstances brought to the attention of the landlord by other tenants, persons within the community, law enforcement agencies or prosecution agencies. For purposes of this subdivision, gang-related crime is any crime motivated by gang membership in which the perpetrator, victim or intended victim is a known member of a gang. Violent crime is any crime which involves use of a gun, a deadly weapon or serious bodily injury and for which a police report has been completed. A violent crime under this subdivision shall not include a crime that is committed against a person residing in the same rental unit as the person committing the crime. Unlawful weapon or ammunition crime is the illegal use, manufacture, causing to be manufactured, importation, possession, possession for sale, sale, furnishing, or giving away of ammunition or any weapon listed in subdivision (c)(1)-(5) of Section 3485 of the Civil Code.
Threat of violent crime is any statement made by a tenant, or at the tenant’s request, by the tenant’s agent to any person who is on the premises or to the owner of the premises, or the owner’s agent, threatening the commission of a crime which will result in death or great bodily injury to another person, with the specific intent that the statement is to be taken as a threat, even if there is no intent of actually carrying it out, when on its face and under the circumstances in which it is made, it is so unequivocal, immediate and specific as to convey to the person threatened, a gravity of purpose and an immediate prospect of execution of the threat, and thereby causes that person reasonably to be in sustained fear for the person’s own safety or for the person’s immediate family’s safety. Such a threat includes any statement made verbally, in writing, or by means of an electronic communication device and regarding which a police report has been completed. A threat of violent crime under this section shall not include a crime that is committed against a person who is residing in the same rental unit as the person making the threat. “Immediate family” means any spouse, whether by marriage or not, parent, child, any person related by consanguinity of affinity within the second degree, or any other person who regularly resides in the household, or who, within the prior six months, regularly resided in the household. “Electronic communication device” includes but is not limited to, telephones, cellular telephones, video recorders, fax machines, or pagers. “Electronic communications” has the same meaning as the term is defined in subsection 12 of Section 2510 of Title 18 of the United States Code, except that “electronic communication” for purposes of this definition shall not be limited to electronic communication that affects interstate or foreign commerce.
Illegal drug activity is a violation of any of the provisions of Chapter 6 (commencing with Section 11350) or Chapter 6.5 (commencing with Section 11400) of the Health and Safety Code.
4. The tenant is using, or permitting a rental unit, the common areas of the rental complex containing the rental unit, or an area within a 1,000 foot radius from the boundary line of the rental complex to be used for any illegal purpose. (Amended by Ord. No. 171,442, Eff. 1/19/97.)
The term “illegal purpose” as used in this subdivision includes, but is not limited to, violations of any of the provisions of Division 10, Chapter 6 (commencing with Section 11350) and Chapter 6.5 (commencing with Section 11400) of the California Health and Safety Code, and does not include the use of housing accommodations lacking a legal approved use or which have been cited for occupancy or other housing code violations. (Amended by Ord. No. 184,822, Eff. 4/30/17.)
5. The tenant, who had a written lease or rental agreement which terminated on or after the effective date of this chapter, has refused, after written request or demand by the landlord to execute a written extension or renewal thereof for a further term of like duration with similar provisions and in such terms as are not inconsistent with or violative of any provision of this chapter or any other provision of law.
6. The tenant has refused the landlord reasonable access to the unit for the purpose of making repairs or improvements, or for the purpose of inspection as permitted or required by the lease or by law, or for the purpose of showing the rental unit to any prospective purchaser or mortgagee.
7. The person in possession of the rental unit at the end of a lease term is a subtenant not approved by the landlord.
8. (Amended by Ord. No. 180,747, Eff. 8/1/09.) The landlord seeks in good faith to recover possession of the rental unit for use and occupancy as a primary place of residence by:
(a) The landlord; or
(b) The landlord’s spouse, grandchildren, children, parents or grandparents; or
(c) A resident manager when a residential manager, janitor, housekeeper, caretaker, or other responsible person is required to reside upon the premises by law or under the terms of an affordable housing covenant or regulatory agreement. (Amended by Ord. No. 187,737, Eff. 1/27/23.)
Landlords seeking to recover possession pursuant to the provisions of this Subdivision must comply with the restrictions and requirements of Section 151.30, as well as all other relevant provisions of this Article.
9. (Amended by Ord. No. 176,544, Eff. 5/2/05.) The landlord, having complied with all applicable notices and advisements required by law, seeks in good faith to recover possession so as to undertake Primary Renovation Work of the rental unit or the building housing the rental unit, in accordance with a Tenant Habitability Plan accepted by the Department, and the tenant is unreasonably interfering with the landlord’s ability to implement the requirements of the Tenant Habitability Plan by engaging in any of the following actions:
a. The tenant has failed to temporarily relocate as required by the accepted Tenant Habitability Plan; or
b. The tenant has failed to honor a permanent relocation agreement with the landlord pursuant to Section 152.05 of this Code.
10. (Amended by Ord. No. 176,544, Eff. 5/2/05.) The landlord seeks in good faith to recover possession of the rental unit under either of the following circumstances:
a. to demolish the rental unit; or
b. to remove the rental unit permanently from rental housing use.
Landlords seeking to recover possession for either of the circumstances described in this subdivision must comply with the requirements of Sections 151.22 through 151.28 of this article. This subdivision constitutes lawful grounds for eviction only where a landlord is withdrawing from rent or lease all of the rental units in a structure or building. A landlord seeking to evict tenants pursuant to either of the circumstances described in this subdivision may not withdraw from rent or lease less than all of the accommodations in a structure or building. Pursuant to California Government Code Section 7060, this subdivision shall not apply to a Residential Hotel as defined in accordance with California Health and Safety Code Section 50519 and Section 47.70, et seq., of this Code. (Amended by Ord. No. 184,873, Eff. 6/4/17.)
11. The landlord seeks in good faith to recover possession of the rental unit in order to comply with a governmental agency’s order to vacate, order to comply, order to abate, or any other order that necessitates the vacating of the building housing the rental unit as a result of a violation of the Los Angeles Municipal Code or any other provision of law. (Amended by Ord. No. 172,288, Eff. 12/17/98.)
12. The Secretary of Housing and Urban Development is both the owner and plaintiff and seeks to recover possession in order to vacate the property prior to sale and has complied with all tenant notification requirements under federal law and administrative regulations. (Added by Ord. No. 173,224, Eff. 5/11/00.)
13. The rental unit is in a Residential Hotel, and the landlord seeks to recover possession of the rental unit in order to Convert or Demolish the unit, as those terms are defined in Section 47.73 of the Los Angeles Municipal Code. A landlord may recover possession of a rental unit pursuant to this paragraph only after the Department has approved an Application for Clearance pursuant to the provisions of Section 47.78. (Amended by Ord. No. 180,175, Eff. 9/29/08.)
14. The landlord seeks to recover possession of the rental unit to convert the subject property to an affordable housing accommodation in accordance with an affordable housing exemption issued by the Department pursuant to Section 151.02 of this Code.
If the landlord fails to record a government imposed regulatory agreement within six months of the filing of the affordable housing exemption with the Department in accordance with Section 151.02 of this Code, and the landlord seeks to offer the rental unit for rent or lease, the accommodations shall be offered and rented or leased at the lawful rent in effect at the time the affordable housing exemption was filed with the Department, plus annual adjustments available pursuant to Section 151.06 of this Code. Furthermore, the landlord shall first offer to rent or lease the unit to the tenant(s) displaced from that unit pursuant to this Subdivision, provided that the tenant(s) advised the landlord in writing within 30 days of displacement of their desire to consider an offer to renew the tenancy and provided the landlord with an address to which that offer is to be directed. The tenant(s) may subsequently advise the landlord of a change of address to which an offer is to be directed. A landlord who re-offers the rental unit pursuant to the provisions of this Subdivision shall deposit the offer in the United States mail, by registered or certified mail with postage prepaid, addressed to the displaced tenant(s) at the address furnished to the landlord as provided in this Subdivision, and shall describe the terms of the offer. The displaced tenant(s) shall have 30 days from the deposit of the offer in the mail to accept the offer by personal delivery of that acceptance to the Department or deposit of the acceptance in the United States mail by registered or certified mail with postage prepaid. (Added by Ord. No. 181,744, Eff. 7/15/11.)
B. If the dominant intent of the landlord in seeking to recover possession of a rental unit is retaliation against the tenant for exercising the tenant’s rights under this chapter or because of the tenant’s complaint to an appropriate agency as to tenantability of a rental unit, and if the tenant is not in default as to the payment of rent, then the landlord may not recover possession of a rental unit in any action or proceeding or cause the tenant to quit involuntarily. (Amended by Ord. No. 161,865, Eff. 1/19/87.)
C. In any action to recover possession of a rental unit, the landlord shall serve on the tenant a written notice setting forth the reasons for the termination. The written notice shall be as described in Civil Code Section 1946 or Code of Civil Procedure Sections 1161 and 1161a. The notice shall be given in the manner prescribed by Code of Civil Procedure Section 1162 and must also comply with the following: (Amended by Ord. No. 184,822, Eff. 4/30/17.)
1. When the termination of tenancy is based on any of the grounds set forth in Subdivisions 2. through 7. of Subsection A. of this section, the termination notice must set forth specific facts to permit a determination of the date, place, witnesses and circumstances concerning the eviction reason. (Amended by Ord. No. 184,822, Eff. 4/30/17.)
2. When the termination of tenancy is based on the grounds set forth in Subdivision 8. of Subsection A. of this Section, the landlord shall file with the Department a declaration on a form and in the number prescribed by the Department identifying the person to be moved into the rental unit, the date on which the person will move in, the rent presently charged for the rental unit, and the date of the last rental increase. This declaration shall be served on the tenant in the manner prescribed by Code of Civil Procedure Section 1162 in lieu of the notice required in Subdivision 1. of this Subsection. When filing the declaration, the landlord shall pay an administrative fee in the amount of $75. The fee shall pay for the cost of administering and enforcing the provisions of Section 151.30 of this Code. (Amended by Ord. No. 180,747, Eff. 8/1/09.)
3. When a termination of tenancy is based on the ground set forth in Section 151.09 A.9. of this Code, the landlord shall file with the Department a declaration on a form prescribed by the Department that sets forth the address of the rental unit, the name of the tenant, a copy of the Tenant Habitability Plan accepted by the Department, documentation of the landlord’s good faith efforts to provide notice pursuant to Section 152.00 et seq. of this Code, documentation of efforts to provide relocation assistance, if applicable, and the reason for the termination with specific facts, including but not limited to the date, place, witnesses and circumstances concerning the reason for termination. This declaration shall be served on the tenant in the manner prescribed by Section 1162 of the California Code of Civil Procedure in lieu of the notice required in Subdivision 1. of this subsection. (Amended by Ord. No. 176,544, Eff. 5/2/05.)
4. When the termination of the tenancy is based on either of the grounds set forth in Subdivision 10. of Subsection A. of this section, the landlord must comply with the requirements of Sections 151.22 through 151.28 of this article. The requirements of Sections 151.22 through 151.28 of this article are in lieu of the notice required in Subdivision 1. of this subsection. (Amended by Ord. No. 177,901, Eff. 9/29/06.)
5. When the termination of tenancy is based on the ground set forth in Subdivision 11. of Subsection A. of this section, then the landlord shall file with the Department a declaration on the form and in the number prescribed by the Department stating that the landlord intends to evict in order to comply with a governmental agency’s order to vacate the building housing the rental unit. The landlord shall attach a copy of the order to vacate to this declaration. This notice shall be served on the tenant in the manner prescribed by Code of Civil Procedure Section 1162 in lieu of the notice required in Subdivision 1. of this subsection. (Added by Ord No, 164,685, Eff. 5/11/89.)
6. When the termination of tenancy is based on the grounds set forth in Subdivision 3. or 4. of Subsection A. of this Section because of alleged illegal drug activity, then the landlord shall file with the Department a declaration on a form and in the manner prescribed by the Department. (Amended by Ord. No. 180,981, Eff. 12/26/09.)
7. When the termination of tenancy is based on the grounds set forth in Subdivision 3. or 4. of Subsection A. of this Section because of alleged gang- related crime, violent crime, unlawful weapon or ammunition crime, threat of violent crime, illegal drug activity or drug-related nuisance as those terms are defined in Section 47.50 A. of this Code, and the landlord desires to raise the rent upon re-rental of the rental unit pursuant to Section 151.06 of this Chapter, then the landlord shall file with the Department a declaration on a form and in the manner prescribed by the Department, including the name of the law enforcement or prosecution agency that provided the landlord with the information upon which the notice of intent to terminate the tenancy will be based. (Amended by Ord. No. 180,981, Eff. 12/26/09.)
8. When the termination of tenancy is based on the grounds set forth in Subdivision 12. of Subsection A. of this section, the Secretary of Housing and Urban Development, or the Secretary’s representative, shall file with the Department a declaration on a form and in the number prescribed by the Department stating that the Secretary has complied with all tenant notification requirements under federal law and administrative regulations. (Added by Ord. No. 173,224, Eff. 5/11/00.)
9. A copy of any written notice terminating a tenancy shall be filed with the Department within three business days of service on the tenant. (Added by Ord. No. 187,737, Eff. 1/27/23.)
D. A landlord shall not change the terms of a tenancy to prohibit pets and then evict the tenant for keeping a pet which was kept and allowed prior to the change, unless the landlord can establish that the pet constitutes a nuisance and the nuisance has not been abated upon proper notice to the tenant. (Amended by Ord. No. 154,736, Eff. 1/9/81; Amended by Ord. No. 174,488, Eff. 4/1/02; Ord. No. 174,488 Repealed by Ord. No. 174,501, Eff. 4/11/02.)
E. In any action by a landlord to recover possession of a rental unit, the tenant may raise as an affirmative defense any violation of the provisions of this chapter. Violation of Subsections A., B. or D. of this section shall not constitute a misdemeanor. (Amended by Ord. No. 166,130, Eff. 9/16/90.)
G. Except for relocation fees owed pursuant to the provisions of Subsection E. of Section 151.30 of this Code, if the termination of tenancy is based on the grounds set forth in Subdivisions 8., 10., 11., 12., 13. or 14. of Subsection A. of this section, then the landlord shall pay a relocation fee of: $16,650 to qualified tenants and a $7,900 fee to all other tenants who have lived in their rental unit for fewer than three years; $19,700 to qualified tenants and a $10,400 fee to all other tenants who have lived in their rental unit for three years or longer; or $19,700 to qualified tenants and $10,400 to all other tenants whose household income is 80% or below Area Median Income (AMI), as adjusted for household size, as defined by the U.S. Department of Housing and Urban Development, regardless of length of tenancy. Relocation fees owed for the termination of tenancy set forth in Subdivision 14. shall be based on the applicable provisions of the Uniform Relocation Act, California Relocation Assistance Act, or the amount set forth in this section. If more than one fee applies to a rental unit, the landlord shall pay the highest of the applicable fees. Tenants who claim eligibility based on their income shall file a statement with the Department verifying their income on a form prescribed by the Department. Requests for a hearing to appeal a decision regarding a tenant’s relocation assistance eligibility, including disputes about eligibility for higher relocation assistance based on a tenant’s income, age, length of tenancy, family status and/or disability status, must be filed in writing on the form prescribed by the Department and received by the Department within fifteen calendar days of the date of the Department’s notification of its decision regarding tenant relocation assistance. (Amended by Ord. No. 184,822, Eff. 4/30/17.)
The Department shall charge a fee of $193 per rental unit for any hearing request under this subsection to pay for the cost of the appeal hearing. For the year beginning July 1, 2009, and all subsequent years, the fee amounts shall be adjusted on an annual basis pursuant to the formula set forth in Section 151.06 D. of this Code. The adjusted amount shall be rounded to the nearest $50 increment. (Amended by Ord. No. 184,822, Eff. 4/30/17.)
If a termination of tenancy is required due to a governmental agency order to vacate or comply, and the subject property has an approved use as a single family home and the structure containing the single family home contains two dwellings, the landlord shall pay a relocation fee in accordance with Section 151.09 G. of this Code to the tenant(s) of the affected rental unit(s) within 15 days of receiving notice from the tenant(s) of their intention to terminate the tenancy. (Amended by Ord. No. 184,822, Eff. 4/30/17.)
1. (Amended by Ord. No. 178,632, Eff. 5/26/07.) This payment shall be made as follows:
a. The entire fee shall be paid to a tenant who is the only tenant in a rental unit;
b. If a rental unit is occupied by two or more tenants, then each tenant of the unit shall be paid an equal, pro-rata share of the fee;
c. Nothing in this subsection relieves the landlord from the obligation to provide relocation assistance pursuant to City administrative agency action or any other provision of local, state or federal law. If a tenant is entitled to monetary relocation benefits pursuant to City administrative agency action or any provision of local, state or federal law, then those benefits shall operate as a credit against any fee required to be paid to the tenant under this section.
d. If the termination of tenancy is based on the grounds set forth in Subdivisions 8., 10., 11. or 12. of Subsection A. of this section, then the landlord shall also pay the City a fee for the purpose of providing relocation assistance by the City’s Relocation Assistance Service Provider, as defined in Sections 47.06 B. and 47.07 B. of this Code. The fee shall be $640 for each unit occupied by a qualified tenant and $400 for each unit occupied by other tenants, and an additional $55 per unit to pay for the administrative costs associated with this service. The fees, set forth above, may be increased in an amount based on the Consumer Price Index - All Urban Consumers averaged for the first 12-month period ending September 30, of each year, as determined and published by the Los Angeles Housing Department on or before May 30, of each year, pursuant to Section 151.07 A.6. of this Code. The Relocation Assistance Service Provider will provide the relocation assistance services listed in Sections 47.06 D. and 47.07 D. of this Code. (Amended by Ord. No. 187,122, Eff. 8/8/21.)
2. The landlord shall perform the acts described in this subsection within fifteen days of service of a written notice of termination described in California Civil Code Section 1946; provided, however, the landlord may in its sole discretion, elect to pay the monetary relocation benefits to be paid to a tenant pursuant to this subsection to an escrow account to be disbursed to the tenant upon certification of vacation of the rental housing unit. The escrow account shall provide for the payment prior to vacation of all or a portion of the monetary relocation benefits for actual relocation expenses incurred or to be incurred by the tenant prior to vacation, including but not limited to security deposits, moving expense deposits and utility connection charges. Escrow accounts shall provide that, in the event of disputes between the landlord and the tenant as to the release of funds from escrow, the funds in dispute shall be released to the Department for final determination. The Rent Adjustment Commission shall establish guidelines for the establishment of these escrow accounts, the certification of vacation and pre- vacation disbursement requests.
3. Any tenant subject to displacement due to an unapproved dwelling unit as a result of a notice to vacate or other order requiring the vacation of the dwelling unit in violation of the municipal code or any other provision of law, where the landlord has had a reasonable opportunity to correct the violation, shall be entitled to relocation payable by the landlord to the tenant of the affected rental unit within 15 days of service of the tenant’s written notice of termination of the tenancy in accordance with Section 151.09 G. of this Code. (Amended by Ord. No. 184,822, Eff. 4/30/17.)
4. Exceptions. This subsection shall not apply in any of the following circumstances:
a. (None);
b. (Deleted by Ord. No. 185,224, Eff. 12/13/17.)
c. (Deleted by Ord. No. 185,224, Eff. 12/13/17.)
d. The landlord seeks in good faith to recover possession of the rental unit for use and occupancy by a resident manager, provided that the resident manager is replacing the existing resident manager in the same unit. For the purposes of this exception, a resident manager shall not include the landlord, or the landlord’s spouse, grandchildren, children, parents or grandparents; (Second Sentence Amended by Ord. No. 180,747, Eff. 8/1/09.)
e. The Department determines that the unit or structure became unsafe or hazardous as the result of a fire, flood, earthquake, or other event beyond the control of the owner or the designated agent and the owner or designated agent did not cause or contribute to the condition. (Amended by Ord. No. 184,822, Eff. 4/30/17.)
5. The landlord may offset the tenant’s accumulated rent against any relocation assistance due under this Subsection, unless the relocation assistance is owed because a termination of tenancy is required by a governmental agency order to vacate or comply issued for an unpermitted dwelling unit. (Added by Ord. No. 187,737, Eff. 1/27/23.)
H. In any action by a landlord to recover possession of a rental unit, the tenant may raise as an affirmative defense the failure of the landlord to comply with Subsection G. of this section. In addition, any landlord who fails to provide monetary relocation assistance as required by Subsection G. of this section shall be liable in a civil action to the tenant to whom such assistance is due for damages in the amount the landlord has failed to pay, together with reasonable attorney fees and costs as determined by the court. (Added by Ord. No. 160,791, Eff. 2/10/86.)
I. If the termination of tenancy was based on the grounds set forth in Subdivision 8. of Subsection A. of this section, the landlord shall file with the Department a declaration on a form prescribed by the Department within ten calendar days of the re-rental of the rental unit. (First Sentence Amended by Ord. No. 177,901, Eff. 9/29/06.) This declaration shall indicate the address of the rental unit, the date of the re-rental, the amount of rent being charged to the current tenant, the name of the current tenant and such further information as requested by the Department. (Amended by Ord. No. 177,103, Eff. 12/18/05.)
J. (Repealed by Ord. No. 181,744, Eff. 7/15/11.)
K. (Repealed by Ord. No. 177,103, Eff. 12/18/05.)
L. Other Displacements. (Added by Ord. No. 169,372, Eff. 3/1/94.)
1. Notwithstanding any provision of the Los Angeles Municipal Code to the contrary, if a tenant of a unit subject to the City’s Rent Stabilization Ordinance is forced to vacate their unit as a result of the January 17, 1994 earthquake and aftermath, and if the landlord desires to re-rent that unit, then, prior to offering the unit to any other tenant and within 30 days after completion of repairs to the unit, the landlord shall offer in writing to the tenant the same unit under the same terms and conditions as existed prior to the tenant’s displacement, except that the landlord may apply for a rent increase as may be approved by the City’s Rent Stabilization Division, or by the Rent Adjustment Commission on appeal, pursuant to the City’s Rent Stabilization Ordinance.
2. The tenant shall have five days after receipt of the landlord’s offer to inspect the unit and accept or reject the offer. If accepted, the tenant shall occupy the unit within 30 days from the date of acceptance of the offer.
3. The tenant shall, within 45 days of the effective date of the ordinance, provide written notice to the landlord of the tenant’s interest to reoccupy the rental unit once all necessary repair work has been completed. The tenant who desires to reoccupy the rental unit shall furnish the landlord with the tenant’s current address and shall notify the landlord in writing of any change of address. If a tenant is unable to ascertain an address of the landlord to which the notice can be sent, the tenant may file a copy of the notice with the City’s Rent Stabilization Division, and this notice shall constitute compliance by the tenant with the obligation to notify the landlord. Upon request by the landlord, the Rent Stabilization Division shall provide the landlord with any copies of any written notices received by the Rent Stabilization Division.
4. The costs of rehabilitation which are necessary before re-renting a unit which was damaged as set forth in Subdivision 1 above, which costs were not reimbursed by insurance proceeds, or by Federal, State, or local grant funds, or by any other means (such as a satisfied judgment), may be passed through to the tenant by utilization of the process set forth in the Rent Stabilization Ordinance. The landlord may serve a 30-day notice (as required by state law) of a proposed rent increase on the tenant 15 days after the landlord has applied to the Rent Stabilization Division for such an increase. The landlord shall not accept or demand a rent increase from the tenant until the landlord receives the City’s approval of the rent increase. The Rent Stabilization Division shall inform the landlord and tenant of all their rights regarding the proposed rent increase as currently required by the City’s Rent Stabilization Ordinance.
5. If a tenant either fails to accept the offer, give notice, or take possession of the rental unit, with- in the applicable time periods described, the landlord shall be free to offer the unit to any tenant, subject to the requirements of the Rent Stabilization Ordinance.
6. A landlord who attempts to re-rent a unit, but refuses to allow a tenant to return to the tenant’s home under this subsection shall be guilty of a misdemeanor. Any person who violates this subsection shall also be liable in a civil action for damages and/or injunctive relief, if appropriate, together with reasonable attorneys’ fees and costs as determined by the court.
7. The landlord’s offers and notices required shall be given in the manner prescribed by Code of Civil Procedure Section 1162 or by certified mail. The tenant shall give any acceptance or notice by first class mail or by utilizing the procedures set forth in Section 1162 at the tenant’s option. If any notice, offer, or acceptance is given by mail, then the postmark date shall be deemed the date of that notice, offer, or acceptance.
8. The Rent Stabilization Division shall attempt to notify affected tenants and landlords of the provisions of the ordinance and may devise any forms it deems necessary to implement the ordinance for use by landlords and tenants. The Rent Adjustment Commission shall have the authority to promulgate any rules and regulations it deems necessary to implement the ordinance.
9. The provisions of this subsection shall apply to tenants regardless of whether or not their security deposits were returned in accordance with state law.
10. The provisions of this subsection shall not apply to any tenant whose tenancy was the subject of a judicial proceeding to terminate the tenancy prior to January 17, 1994, if that proceeding results in a final judgment terminating the tenancy.
A. Any person who demands, accepts or retains any payment of rent in excess of the maximum rent or maximum adjusted rent in violation of the provisions of this chapter, or any regulations or orders promulgated hereunder, shall be liable in a civil action to the person from whom such payment is demanded, accepted or retained for damages of three times the amount by which the payment or payments demanded, accepted or retained exceed the maximum rent or maximum adjusted rent which could be lawfully demanded, accepted or retained together with reasonable attorneys’ fees and costs as determined by the court.
B. Any person violating any of the provisions, or failing to comply with any of the requirements, of this chapter shall be guilty of a misdemeanor. (Amended by Ord. No. 187,109, Eff. 8/6/21.)
Any person who willfully or knowingly with the intent to deceive, makes a false statement or representation, or knowingly fails to disclose a material fact, in a notice or declaration required under Subsection C. or I. of Section 151.09 or in any declaration, application, hearing or appeal permitted under this chapter, including any oral or written evidence presented in support thereof, shall be guilty of a misdemeanor.
Any person convicted of a misdemeanor under the provisions of this chapter shall be punished by a fine of not more than $1,000.00 or by imprisonment in the County Jail for a period of not more than six months or both. Each violation of any provision of this chapter and each day during which such violation is committed, or continues, shall constitute a separate offense. (Amended by Ord. No. 161,865, Eff. 1/19/87.)
Any person who willfully or knowingly with the intent to deceive, makes a false statement or representation, or knowingly fails to disclose a material fact, in a notice or declaration required under 153.03 A.2.a. of the Los Angeles Municipal Code, shall be guilty of a misdemeanor. (Added by Ord. No. 171,074, Eff. 6/23/96.)
C. Penalties for Violation of State Law Regarding Residential Hotel Occupants. Civil Code Section 1940.1 permits municipalities, among other things, to create remedies by local ordinance for violations of Civil Code Section 1940.1(a). It is the purpose of this subdivision to implement Civil Code Section 1940.1. In addition to any penalties provided by State law, a violation of Civil Code Section 1940.1 is punishable as a misdemeanor. (Added by Ord. No. 176,472, Eff. 3/26/05.)
D. Any agreement, whether written or oral, waiving any of the provisions contained in this Article shall be void as contrary to public policy. (Added by Ord. No. 181,744, Eff. 7/15/11.)
E. Nothing in this Article shall be construed to deprive a person of due process rights guaranteed by law, including, but not limited to, a right to appeal the Department’s determination regarding a Tenant Habitability Plan to a hearing officer. (Added by Ord. No. 181,744, Eff. 7/15/11.)
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