(Added by Ord. No. 177,184, Eff. 12/23/05.)
A. Purpose. The purpose of this Section 151.21 is to permit landlords to rent rental units subject to the City's Rent Stabilization Ordinance at below market rates for a temporary period to persons displaced from their homes by Hurricane Katrina or Hurricane Rita and to raise the rental rates at the end of the temporary period.
B. Definitions. The following words and phrases, whenever used in this section, shall be construed as defined in this section. Words and phrases not defined in this section shall be construed as defined in Section 151.02 of this article, if defined there.
Displacee. A person who was displaced from a residence as a result of Hurricane Katrina or Hurricane Rita and who was issued a registration number by FEMA because the person was affected by Hurricane Katrina or Hurricane Rita.
Fair Market Value Rent. The average rent as determined by the Department for a rental unit based on the unit's location and size. The Department shall make available to the public the schedule of Fair Market Value Rent amounts.
FEMA. The United States Federal Emergency Management Agency.
Fixed Relief Period. The length of time identified in a Qualifying Relief Rental Agreement Form during which a landlord agrees to charge as rent to a Displacee an amount not greater than seventy-five percent of the applicable Fair Market Value Rent. In no event shall the Fixed Relief Period extend beyond December 31, 2006.
Increased Rental Rate. Amount specified in a Qualifying Relief Rental Agreement Form that a landlord may charge as rent after expiration of a Fixed Relief Period.
Program. The Hurricane Katrina and Hurricane Rita Temporary Relief Program established by this Section 151.21.
Reduced Rental Rate. Amount specified in a Qualifying Relief Rental Agreement Form that will be charged for a Fixed Relief Period, after which the rent may be increased to the Increased Rental Rate amount specified in the Qualifying Relief Rental Agreement Form. The Reduced Rental Rate must be not greater than 75% of the applicable Fair Market Value Rent.
Rent Stabilization Ordinance. The City of Los Angeles Rent Stabilization Ordinance, codified at Los Angeles Municipal Code Section 151.00 et seq.
C. Rent Increases to Displacees. Notwithstanding the provisions of Subsection D. of Section 151.06 of this article, a landlord who files a Qualifying Relief Rental Agreement Form pursuant to Subsection D. of this section may increase the rent to the Increased Rental Rate at the expiration of the Fixed Relief Period. After a landlord increases the rent at the expiration of the Fixed Relief Period, regardless of whether the increase is less than the amount authorized in the Qualifying Relief Rental Agreement Form, the rent cannot be further increased without compliance with the provisions of the Rent Stabilization Ordinance, including those provided pursuant to Section 151.06.
D. Qualifying Relief Rental Agreement Form. The provisions of this Section 151.21 shall apply only to leases for which a Qualifying Relief Rental Agreement Form pursuant to the provisions of this Subsection D. is filed with the Department. Landlords who desire to participate in this Program must file with the Department at its Central Regional Office located at 3550 Wilshire Boulevard, 15th Floor, Los Angeles CA 90010, a Qualifying Relief Rental Agreement Form that will be provided by the Department. The Form must contain, at a minimum, the following:
1. A description of the rental unit, including the address with zip code, the number of bathrooms and bedrooms;
2. Identification of amenities to be provided by the landlord during the Fixed Relief Period, and amenities that will be provided by the landlord after the Fixed Relief Period. The identification of amenities shall include whether the landlord will furnish the rental unit and which utilities, if any, will be paid by the landlord;
3. The Fair Market Value Rent applicable to the rental unit;
4. The Reduced Rental Rate that will be charged during the Fixed Relief Period, and the Increased Rental Rate that the landlord may charge at the end of the Fixed Relief Period;
5. The registration number issued by FEMA to the Displacee; and
6. A statement that the Displacee may terminate the lease upon thirty days notice and will not be liable for rent that would otherwise be owed for the remainder of the term of the Fixed Relief Period and the remainder of the lease, nor for damages resulting from termination prior to expiration of the Fixed Relief Period and the lease.
The completed Qualifying Relief Rental Agreement Form must be signed by the Displacee and the landlord. The Department will not accept for filing any Form that does not contain the information required by this subsection, that does not demonstrate that the initial rent charged under the Program is not greater than 75% of the applicable Fair Market Value Rent, and that is not signed by the Displacee and the landlord.
E. Effect of Failure to Increase Rent at the Expiration of Fixed Relief Period. A landlord may continue to rent to a Displacee at the Reduced Rental Rate upon the expiration of a Fixed Relief Period. A landlord who does not increase the rental rate upon the expiration of the Fixed Relief Period may impose one rent increase on or before December 31, 2006, provided that the new rental amount does not exceed the Increased Rental Rate. If, on January 1, 2007, the landlord has not increased the rent from the Reduced Rental Rate, the rent cannot further be increased without compliance with the provisions of the Rent Stabilization Ordinance, including those provided pursuant to Section 151.06.
F. Ineligible Rental Units. Rental Units may not be rented pursuant to the provisions of this section if they are located in buildings: (1) that have been placed into the Rent Escrow Account Program pursuant to Section 162.00 et seq., or Section 155.00 et seq., and the REAP placement is not yet terminated; (2) for which there is an outstanding order or notice to comply, correct or abate a condition or violation issued by an Enforcement Agency as defined in Section 162.02; or (3) that contain a rental unit that the Department has determined is being rented in violation of the Rent Stabilization Ordinance, and the Department has notified the landlord in writing of that determination.
G. Termination of Program. Effective January 1, 2007, rent can be increased only in compliance with the provisions of the Rent Stabilization Ordinance, including the provisions of Section 151.06.
H. Authority of Department to Administer Program. The Department is authorized to administer the Program, and may develop procedures and regulations to assist in the administration. The Department may require the landlord to provide notice to Displacees on forms provided by the Department, and may require the landlord to file documents other than the Qualifying Relief Rental Agreement Form, including documents issued by FEMA identifying the Displacee's FEMA registration number. Nothing in this Subsection H. is intended to limit the authority of the Department to administer the Program.