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CHAPTER I GENERAL PROVISIONS AND ZONING
CHAPTER 1A CITY OF LOS ANGELES ZONING CODE
CHAPTER II* LICENSES, PERMITS, BUSINESS REGULATIONS
CHAPTER III PUBLIC HEALTH CODE
CHAPTER IV PUBLIC WELFARE
CHAPTER V PUBLIC SAFETY AND PROTECTION
CHAPTER VI PUBLIC WORKS AND PROPERTY
CHAPTER VII TRANSPORTATION
CHAPTER VIII TRAFFIC
CHAPTER IX BUILDING REGULATIONS
CHAPTER X BUSINESS REGULATIONS
CHAPTER XI NOISE REGULATION
CHAPTER XII THE WATER CONSERVATION PLAN OF THE CITY OF LOS ANGELES
CHAPTER XIII THE EMERGENCY ENERGY CURTAILMENT PLAN OF THE CITY OF LOS ANGELES
CHAPTER XV RENT STABILIZATION ORDINANCE
ARTICLE 1 RENT STABILIZATION ORDINANCE
SEC. 151.00. TITLE.
SEC. 151.01. DECLARATION OF PURPOSE.
SEC. 151.02. DEFINITIONS.
SEC. 151.03. THE RENT ADJUSTMENT COMMISSION.
SEC. 151.04. RESTRICTION ON RENTS.
SEC. 151.05. REGISTRATION, NOTIFICATION OF TENANTS, POSTING OF NOTICE AND PAYMENT OF FEES.
SEC. 151.05.1. PASSTHROUGH OF SURCHARGE FOR THE SYSTEMATIC CODE ENFORCEMENT FEE.
SEC. 151.06. AUTOMATIC ADJUSTMENTS.
SEC. 151.06.02. PAYMENT OF INTEREST ON SECURITY DEPOSITS.
SEC. 151.06.1. SMOKE DETECTORS.
SEC. 151.06.2. SURCHARGE FOR WATER CONSERVATION ASSESSMENT.
SEC. 151.07. AUTHORITY OF THE DEPARTMENT AND THE COMMISSION TO GRANT INDIVIDUAL RENT ADJUSTMENTS.
SEC. 151.08. AUTHORITY OF COMMISSION TO REGULATE BY CLASS.
SEC. 151.09. EVICTIONS.
SEC. 151.10. REMEDIES.
SEC. 151.11. REFUSAL OF A TENANT TO PAY.
SEC. 151.12. OPERATIVE DATE.
SEC. 151.13. MINOR ERRORS IN PAYMENT.
SEC. 151.14. FILING OF APPLICATION FOR RENT ADJUSTMENTS, REQUESTS FOR HEARING, AND APPEALS.
SEC. 151.15. PENALTIES FOR LATE REGISTRATION AND FOR FAILURE TO POST NOTICE THAT PROPERTY IS SUBJECT TO THE RENT STABILIZATION ORDINANCE.
SEC. 151.16. RESEARCH SERVICES.
SEC. 151.18. ADDITIONAL SERVICES CONTRACTS.
SEC. 151.19. REVIEW OF ORDINANCE.
SEC. 151.20. TEMPORARY EVICTION CONTROLS AND RENT REDUCTIONS FOR MOBILE HOMES DAMAGED IN THE JANUARY, 1994 EARTHQUAKE.
SEC. 151.21. HURRICANE KATRINA AND HURRICANE RITA TEMPORARY RELIEF PROGRAM.
SEC. 151.22. ELLIS ACT PROVISIONS - STATEMENT OF PURPOSE AND EFFECT.
SEC. 151.23. ELLIS ACT PROVISIONS - REQUIRED NOTICE.
SEC. 151.24. ELLIS ACT PROVISIONS - NOTIFICATION TO DEPARTMENT OF INTENT TO RE-RENT UNIT.
SEC. 151.25. ELLIS ACT PROVISIONS - CIVIL PENALTIES FOR OFFERING UNITS FOR RENT WITHIN TWO YEARS OF WITHDRAWAL.
SEC. 151.26. ELLIS ACT PROVISIONS - REGULATION OF PROPERTY ON RE-OFFER FOR RENT OR LEASE AFTER WITHDRAWAL.
SEC. 151.27. ELLIS ACT PROVISIONS - RE-RENTAL RIGHTS OF DISPLACED TENANTS.
SEC. 151.28. ELLIS ACT PROVISIONS - RENTAL OF REPLACEMENT UNITS.
SEC. 151.29. REGULATION OF LEASES IN MOBILEHOME PARKS.
SEC. 151.30. EVICTIONS FOR OWNER, FAMILY, OR RESIDENT MANAGER OCCUPANCY.
SEC. 151.31. TENANT BUYOUT NOTIFICATION PROGRAM.
SEC. 151.32. PROHIBITION ON RENT INCREASES.
SEC. 151.33. TENANT ANTI-HARASSMENT.
SEC. 151.34. TEMPORARY SETTING OF AUTOMATIC RENT ADJUSTMENTS AT FOUR PERCENT (4%).
SEC. 151.35. SEVERABILITY.
ARTICLE 2 TENANT HABITABILITY PROGRAM
ARTICLE 3 HABITABILITY ENFORCEMENT PROGRAM OF THE CITY OF LOS ANGELES
ARTICLE 4 PROPERTY MANAGEMENT TRAINING PROGRAM
ARTICLE 5 UTILITY MAINTENANCE PROGRAM
CHAPTER XVI HOUSING REGULATIONS
CHAPTER XVII RULES AND REGULATIONS GOVERNING THE USE OF THE LOS ANGELES AIRPORTS
CHAPTER XVIII EMPLOYEE WAGES AND PROTECTIONS
CHAPTER XIX ENVIRONMENTAL PROTECTION
CHAPTER XX COVID-19 PROTECTION AND RECOVERY*
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SEC. 151.22. ELLIS ACT PROVISIONS - STATEMENT OF PURPOSE AND EFFECT.
   (Added by Ord. No. 177,901, Eff. 9/29/06.)
 
   California Government Code Sections 7060, et seq. (the “Ellis Act”) permits the City, among other things, to require landlords to provide all tenants with 120 days notice, or one year if the tenants lived in the accommodations for at least one year and are more than 62 years of age or disabled, when rental units subject to the Rent Stabilization Ordinance are to be withdrawn from the rental market. The Ellis Act also permits the City to impose other restrictions, conditions and requirements upon the property. It is the purpose of this section, and Sections 151.23 through 151.28, to implement provisions of the Ellis Act. The Department may develop forms and regulations to assist in the implementation of these provisions.
 
   There continues to be a low vacancy rate for rental units in the City of Los Angeles, and the withdrawal of residential rental property from rent or lease will exacerbate the rental housing shortage and make it more difficult for tenants displaced by the withdrawal to obtain replacement housing. Because of the rental housing shortage, it is essential that tenants be afforded substantial advance notice to enable them to obtain replacement housing, and that they receive other protections available under law.
 
   In any action by a landlord to recover possession of a rental unit subject to the Rent Stabilization Ordinance, including, but not limited to, where an owner seeks to displace a tenant from accommodations withdrawn from rent pursuant to this chapter by an unlawful detainer proceeding, the tenant may appear and answer or demurer pursuant to California Code of Civil Procedure Section 1170 and may raise as an affirmative defense the failure of the landlord to comply with one or more of the requirements of Sections 151.22 through 151.28, as well as the failure of the landlord to comply with any other requirement of this chapter. (Amended by Ord. No. 185,224, Eff. 12/13/17.)
 
   If rental units subject to the Rent Stabilization Ordinance were demolished subsequent to September 29, 2006, the effective date of Sections 151.22 through 151.28, without complying with the requirements set forth hereunder, then all replacement rental units constructed on the same property shall be deemed subject to the Rent Stabilization Ordinance, Section 151.00, et seq., and other provisions of this chapter. Additionally, any landlord who is found to have demolished a property subject to the Rent Stabilization Ordinance subsequent to September 29, 2006, without complying with the requirements of Sections 151.22 through 151.28 shall be subject to a penalty. (Added by Ord. No. 184,873, Eff. 6/4/17.)
 
   Pursuant to California Government Code section 7060, the Ellis Act and Sections 151.22 through 151.28 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. (Added by Ord. No. 184,873, Eff. 6/4/17.)
 
 
SEC. 151.23. ELLIS ACT PROVISIONS - REQUIRED NOTICE.
   (Added by Ord. No. 177,901, Eff. 9/29/06.)
 
   Notwithstanding any provision of this chapter to the contrary, if a landlord desires to demolish rental units subject to the Rent Stabilization Ordinance, or otherwise withdraw the units from rental housing use, irrespective of whether such rental units are occupied or vacant, then the following provisions shall apply: (Amended by Ord. No. 184,873, Eff. 6/4/17.)
 
   A.   Notice of Intent to Withdraw. (Amended by Ord. No. 184,873, Eff. 6/4/17.) The landlord shall notify the Department of an intention to withdraw a rental unit from rental housing use. This Notice of Intent to Withdraw shall be filed with the Department whether the rental unit(s) to be withdrawn or demolished are occupied or vacant at the time of filing and shall contain the following:
 
   1.   statements, under penalty of perjury on the form and in the number prescribed by the Department, stating that the landlord intends to demolish the rental unit or to remove the rental unit from rental housing use;
 
   2.   the address or location of the rental unit;
 
   3.   the number of rental units to be demolished or removed from rental housing use;
 
   4.   the names of the tenants, if any, of each rental unit and that the landlord intends to evict such tenants in order to demolish the rental unit or to remove the rental unit from rental housing use;
 
   5.   the date on which the rental unit will be withdrawn from rental housing use; and
 
   6.   the rent applicable to that rental unit.
 
   The Department shall have the authority to promulgate forms and procedures to assist in the implementation of this subdivision.
 
   B.   Recordation of Non-Confidential Memorandum and Extension of the Date of Withdrawal from Rental Housing Use. Irrespective of whether the rental units to be withdrawn or demolished are occupied or vacant at the time of filing the Notice of Intent to Withdraw, the landlord shall record with the County Recorder a memorandum summarizing the provisions of the Notice of Intent to Withdraw, other than provisions that are confidential pursuant to this section. If applicable, information respecting the name or names of the tenants, the rent applicable to any rental unit, and the total number of units is confidential information and shall be treated as confidential information by the Department for purposes of the Information Practices Act of 1977, as contained in Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code. (Amended by Ord. No. 184,873, Eff. 6/4/17.)
 
   The landlord shall submit a copy of the memorandum filed with the County Recorder to the Department concurrently with the Notice of Intent to Withdraw, with a certification that actions have been initiated as required by law to terminate any existing tenancies.
 
   The date on which the rental units are to be withdrawn from rental housing use shall be at least 120 days from the date of the delivery to the Department in person or by first-class mail of the Notice of Intent to Withdraw.
 
   If the tenant is at least 62 years of age or disabled (as defined in Government Code Section 12955.3) and has lived in their accommodations for at least one year prior to the date of delivery to the Department of the Notice of Intent to Withdraw pursuant to Subsection A. of this section, then the date of withdrawal of the accommodations of that tenant shall be extended to one year after the date of delivery of that Notice to the Department. This extension shall take place, if and only if, the tenant gives written notice of their entitlement to an extension to the landlord within 60 days of the date of delivery to the Department of the Notice of Intent to Withdraw. In that situation, the following provisions shall apply:
 
   1.   The tenancy shall be continued on the same terms and conditions as existed on the date of delivery to the Department of the Notice of Intent to Withdraw, subject to any adjustments otherwise available under the Rent Stabilization Ordinance.
 
   2.   No party shall be relieved of the duty to perform any obligation under the lease or rental agreement.
 
   3.   The landlord may elect to extend the date of withdrawal on any other rental units up to one year after the date of delivery to the Department of the Notice of Intent to Withdraw, subject to Subparagraphs 1. and 2.
 
   4.   Within 30 days of the notification by the tenant to the landlord of their entitlement to an extension, the landlord shall give written notice to the Department of the claim that the tenant is entitled to stay in the accommodations for one year after the date of delivery to the Department of the Notice of Intent to Withdraw.
 
   5.   Within 90 days of the date of delivery to the Department of the Notice of Intent to Withdraw, the landlord shall give written notice to the Department and the affected tenant of the landlord’s election to extend the date of withdrawal and the new date of withdrawal under Subparagraph 3.
 
   C.   Notice to the Tenants of Pending Withdrawal. Within five days of delivery to the Department of the Notice of Intent to Withdraw with the certification required under Subsection B. of this section, and a copy of the memorandum recorded by the County Recorder, the landlord shall notify, by delivery in person or by first-class mail, each affected tenant of the following:
 
   1.   That the Department has been notified pursuant to Subsection A., including the date of the delivery to the Department of the Notice of Intent to Withdraw;
 
   2.   That the Notice delivered to the Department specified the name and the amount of rent paid by the tenant as an occupant of the accommodations;
 
   3.   The amount of rent the landlord specified in the notice to the Department;
 
   4.   Notice to the tenant of the tenant’s rights under Paragraph (3) of Subdivision (b) of Government Code Section 7060.2; and
 
   5.   Notice to the tenant stating the following:
 
   (a)   If the tenant is at least 62 years of age or disabled, and has lived in their accommodations for at least one year prior to the date of delivery to the Department of the Notice of Intent to Withdraw, then the tenancy shall be extended to one year after the date of delivery to the Department of the Notice of Intent to Withdraw, provided that the tenant gives written notice of their entitlement to the landlord within 60 days of the date of delivery to the Department of the Notice of Intent to Withdraw;
 
   (b)   The extended tenancy shall be continued on the same terms and conditions as existed on the date of delivery to the Department of the Notice of Intent to Withdraw, subject to any adjustments otherwise available under the Rent Stabilization Ordinance; and
 
   (c)   No party shall be relieved of the duty to perform any obligation under the lease or rental agreement during the extended tenancy.
 
   D.   Annual Property Status Reports. (Added by Ord. No. 184,873, Eff. 6/4/17.) For no less than seven (7) years following the date of delivery to the Department of the Notice of Intent to Withdraw, or until such time as the Department advises the landlord that they have complied with all reporting requirements set forth in this section, whichever occurs first, the landlord shall file with the Department an Annual Property Status Report, under penalty of perjury and on the form and in the manner prescribed by the Department, providing the following information to the extent applicable:
 
   1.   the status related to the demolition of any withdrawn rental units;
 
   2.   the status related to the development of any withdrawn rental units; and
 
   3.   confirmation that any newly constructed rental units have been registered with the Department in conformance with Section 151.05 and are being operated in compliance with the Rent Stabilization Ordinance.
 
 
SEC. 151.24. ELLIS ACT PROVISIONS - NOTIFICATION TO DEPARTMENT OF INTENT TO RE-RENT UNIT.
   (Added by Ord. No. 177,901, Eff. 9/29/06.)
 
   A.   If a landlord desires to offer for rent or lease a rental unit that was the subject of a Notice of Intent to Withdraw pursuant to the provisions of Subsection A. of Section 151.23, the landlord must file with the Department a Notice of Intention to Re-Rent Withdrawn Accommodations on a form prescribed by the Department. This Notice must contain the following information:
 
   1.   The names and mailing addresses of all owners of the property;
 
   2.   A statement that said owners intend to re- rent the accommodations;
 
   3.   The addresses of those accommodations.
 
   B.   Except as provided in Section 151.27 of this Article, the landlord shall not offer for rent or lease any unit from which a tenant or lessee was displaced for a period of thirty days following the filing of the Notice of Intention to Re-Rent Withdrawn Accommodations with the Department.
 
   C.   If a landlord offers for rent or lease a rental unit which was the subject of a Notice of Intent to Withdraw pursuant to the provisions of Subsection A. of Section 151.23, irrespective of whether a Notice of Intention to Re-Rent Withdrawn Accommodations has been filed with the Department, and the landlord later wishes to recommence the withdrawal of the rental unit, the landlord must file a new Notice of Intent to Withdraw and comply with all requirements pursuant to Sections 151.09 G. and 151.23 through 151.28 of this Code. (Added by Ord. No. 184,873, Eff. 6/4/17.)
 
 
SEC. 151.25. ELLIS ACT PROVISIONS - CIVIL PENALTIES FOR OFFERING UNITS FOR RENT WITHIN TWO YEARS OF WITHDRAWAL.
   (Added by Ord. No. 177,901, Eff. 9/29/06.)
 
   If a rental unit that was the subject of a Notice of Intent to Withdraw pursuant to the provisions of Subsection A. of Section 151.23 is offered for rent or lease within two years of the date of withdrawal of the rental unit from the rental market:
 
   A.   The landlord shall be liable to any tenant or lessee who was displaced from the property for actual and exemplary damages. Any action by a tenant or lessee pursuant to this section shall be brought within three years of withdrawal of the rental unit from rent or lease. Nothing in this section precludes a tenant from pursuing any alternative remedy available under the law; and
 
   B.   The City may institute a civil proceeding against any landlord who has again offered a rental unit for rent or lease subject to this section, for exemplary damages for displacement of tenants or lessees. Any action by the City pursuant to this section shall be brought within three years of the withdrawal of the rental unit from rent or lease.
 
   C.   Pursuant to California Government Code Section 7060.3, the City may apply the constraints as set forth in this section to a successor in interest of a landlord who has withdrawn a rental unit from rent or lease, by recording a notice, to be indexed in the grantor-grantee index, with the County Recorder which shall specifically describe the property where the rental unit is located, the dates applicable to the constraints and the name of the owner(s) of record of the property. (Added by Ord. No. 184,873, Eff. 6/4/17.)
 
 
SEC. 151.26. ELLIS ACT PROVISIONS - REGULATION OF PROPERTY ON RE-OFFER FOR RENT OR LEASE AFTER WITHDRAWAL.
   (Added by Ord. No. 177,901, Eff. 9/29/06.)
 
   If a landlord desires to offer for rent or lease a rental unit which was the subject of a Notice of Intent to Withdraw pursuant to the provisions of Subsection A. of Section 151.23, the following regulations apply:
 
   A.   If a rental unit that was removed from rental housing use pursuant to the provisions of Section 151.23 is offered for rent or lease during either:
 
   1.   the five-year period after the Notice of Intent to Withdraw the accommodations is filed with the Department pursuant to Section 151.23, whether or not the Notice of Intent is rescinded or the withdrawal of the accommodations is completed pursuant to the Notice of Intent; or
 
   2.   the five-year period after the accommodations are withdrawn;
 
then the accommodations shall be offered and rented or leased at the lawful rent in effect at the time any Notice of Intent to Withdraw the accommodations was filed with the Department, plus annual adjustments available under Section 151.06 of this article.
 
   B.   Subsection A. of this section shall prevail over any conflicting provision of law authorizing the landlord to establish the rental rate upon the initial hiring of the rental unit.
 
   C.   If a landlord offers for rent or lease a rental unit that was the subject of a Notice of Intent to Withdraw pursuant to the provisions of Subsection A. of Section 151.23, irrespective of whether a Notice of Intention to Re-Rent Withdrawn Accommodations has been filed with the Department, and the landlord later wishes to recommence the withdrawal of the rental unit, the landlord must file a new Notice of Intent to Withdraw and comply with all requirements pursuant to Sections 151.09 G. and 151.23 through 151.28 of this Code. (Added by Ord. No. 184,873, Eff. 6/4/17.)
 
   D.   Pursuant to California Government Code Section 7060.3, the City may apply the constraints as set forth in this section to a successor in interest of a landlord who has withdrawn a rental unit from rent or lease, by recording a notice, to be indexed in the grantor-grantee index, with the County Recorder which shall specifically describe the property where the rental unit is located, the dates applicable to the constraints and the name of the owner(s) of record of the property. (Added by Ord. No. 184,873, Eff. 6/4/17.)
 
 
SEC. 151.27. ELLIS ACT PROVISIONS - RE-RENTAL RIGHTS OF DISPLACED TENANTS.
   (Added by Ord. No. 177,901, Eff. 9/29/06.)
 
   If a landlord desires to offer for rent or lease a rental unit that was the subject of a Notice of Intent to Withdraw pursuant to the provisions of Subsection A. of Section 151.23, the following regulations apply:
 
   A.   A landlord who offers accommodations for rent or lease within two years from the date of withdrawal shall first offer to rent or lease each unit to the tenant or tenants displaced from that unit by the withdrawal, provided that the tenant or tenants advised the landlord in writing within 30 days of displacement of the tenant’s or tenants’ desire to consider an offer to renew the tenancy, and provided the landlord with an address to which that offer is to be directed. That tenant or tenants may advise the landlord at any time during the period of eligibility of a change of address to which an offer is to be directed.
 
   If a landlord again offers accommodations for rent or lease pursuant to the provisions of this subsection, and the tenant or lessee has advised the landlord pursuant to this subsection of a desire to consider an offer to renew the tenancy, then the landlord shall offer to reinstitute a rental agreement or lease on terms permitted by law to that displaced tenant or lessee.
 
   A landlord who re-offers rental or lease accommodations to a previously displaced tenant pursuant to the provisions of this subsection shall deposit the offer in the United States mail, by registered or certified mail with postage prepaid, addressed to the displaced tenant or tenants at the address furnished to the landlord as provided in this subsection, and shall describe the terms of the offer. The displaced tenant or tenants shall have 30 days from the deposit of the offer in the mail to accept the offer by personal delivery of that acceptance or by deposit of the acceptance in the United States mail by registered or certified mail with postage prepaid.
 
   B.   A landlord who offers accommodations for rent or lease not exceeding ten years from the date of withdrawal shall first offer to rent or lease each unit to the tenant or tenants displaced from that accommodation by the withdrawal, provided that the tenant or tenants requests the offer in writing within 30 days after the landlord has notified the Department of an intention to offer the accommodations again for residential rent or lease pursuant to the requirements of Section 151.24. The landlord shall be liable to any tenant or tenants who were displaced by that action for failure to comply with this subsection, for punitive damages in an amount that does not exceed the contract rent for six months. (Amended by Ord. No. 185,224, Eff. 12/13/17.)
 
   C.   Pursuant to California Government Code Section 7060.3, the City may apply the constraints as set forth in this section to a successor in interest of a landlord who has withdrawn a rental unit from rent or lease, by recording a notice, to be indexed in the grantor-grantee index, with the County Recorder which shall specifically describe the property where the rental unit is located, the dates applicable to the constraints and the name of the owner(s) of record of the property. (Added by Ord. No. 184,873, Eff. 6/4/17.)
 
 
SEC. 151.28. ELLIS ACT PROVISIONS - RENTAL OF REPLACEMENT UNITS.
   (Added by Ord. No. 178,848, Eff. 7/16/07.)
 
   A.   Replacement Units Subject to the Rent Stabilization Ordinance. If a building containing a rental unit that was the subject of a Notice of Intent to Withdraw pursuant to the provisions of Subsection A. of Section 151.23 is demolished and rental units are constructed on the same property and offered for rent or lease within five years of the date the rental unit that was the subject of the Notice of Intent to Withdraw was withdrawn from rent or lease, the owner may establish the initial rental rate for the newly constructed rental units. The provisions of the Rent Stabilization Ordinance, Section 151.00, et seq., and other provisions of this chapter shall apply to the newly constructed rental units.
 
   This section shall not apply to demolished buildings containing four or fewer rental units, if the owner of the building, whose name appears on legal title to the property, is a natural person and resided in the building for three consecutive years prior to demolition, or if the building is not yet demolished, for three consecutive years prior to filing an application for exemption. To obtain this exemption, an owner must apply to the Department for exemption pursuant to the provisions of Subdivision 3. of Subsection C. of this section.
 
   Notwithstanding any provision to the contrary contained herein, if rental units subject to the Rent Stabilization Ordinance were demolished subsequent to September 29, 2006, the effective date of these provisions, without complying with the requirements of Sections 151.22 through 151.28, then all replacement rental units constructed on the same property shall be deemed subject to the Rent Stabilization Ordinance, Section 151.00, et seq., and other provisions of this chapter. Additionally, any landlord who is found to have demolished a property subject to the Rent Stabilization Ordinance subsequent to September 29, 2006 without complying with the requirements of Sections 151.22 through 151.28 shall be subject to a penalty to be adopted by Council. (Added by Ord. No. 184,873, Eff. 6/4/17.)
 
   B.   Exemption from the Rent Stabilization Ordinance with Replacement Affordable Units. (Amended by Ord. No. 184,873, Eff. 6/4/17.) An owner who replaces the number of demolished rental units with a number of affordable housing units at least equal to the number of withdrawn rental units subject to the Rent Stabilization Ordinance on a one-for-one basis or at least 20% of the total number of newly constructed rental units, whichever is greater, may apply to the Department for an exemption of the newly constructed rental units from the provisions of the Rent Stabilization Ordinance. The affordable housing units must be located in the newly constructed accommodations. The Department shall issue an exemption where it finds all of the following to exist:
 
   1.   The owner executed and recorded a covenant and agreement, in a form satisfactory to the Department, guaranteeing that the replacement affordable housing units, affordable for low or very low households with an income at or below 80% of Area Median Income as established by the California Department of Housing and Community Development or any successor agency, shall remain affordable for 55 years from the date the covenant and agreement is recorded. The covenant and agreement must contain provisions as required by the Department to ensure the effective administration and enforcement of this subsection.
 
   2.   The replacement affordable housing units shall be reasonably dispersed throughout the newly constructed accommodations and shall not be segregated in a portion of the accommodations dedicated to affordable housing units.
 
   3.   The replacement affordable housing units shall be comparable to the market rate units and contain, on average, the same number of bedrooms, bathrooms and square footage as the market rate units. The replacement affordable housing units shall be comparable in architectural style to the average of the market rate units.
 
   Units that are used to qualify for a density bonus pursuant to the provisions of either California Government Code Section 65915 or Los Angeles Municipal Code Section 12.22 A.25., or are used to satisfy any inclusionary zoning or replacement affordable housing requirement, or are used to qualify for any other public benefit or incentive, may be used to qualify as replacement affordable housing units pursuant to the provisions of this subsection.
 
   C.   Application for Exemption from the Rent Stabilization Ordinance.
 
   1.   Hardship Exemption. (Amended by Ord. No. 186,455, Eff. 1/15/20.) The Department shall have the authority to grant an exemption from the provisions of this section in cases of undue financial hardship arising from detrimental reliance upon the provisions of this article before enactment of this section. An owner claiming a hardship exemption for their multi-family project (project) must file a written application on the form(s) provided by the Department which demonstrates to the satisfaction of the Department that the criteria of either Paragraph (a) or (b) have been met:
 
   (a)   The application was filed with the Department within 90 days of June 4, 2017 (the date Ordinance No. 184,873 was enacted), and demonstrates that the hardship to the project existed as of that date; or
 
   (b)   The application is filed with the Department within 60 days of the effective date of this Paragraph (b) and demonstrates that the owner received discretionary entitlements for the project before June 4, 2017, and that at least fifteen percent (15%) of the total number of units at the project are restricted for and affordable to Very Low Income households for a term of 55 years from the date of issuance of the certificate of occupancy and the number of Very Low Income restricted units is no less than the number of rental units subject to the Rent Stabilization Ordinance demolished for the project, if any.
 
   An owner who files an application for exemption pursuant to the provisions of this subdivision shall pay to the Department an administrative fee in the amount of $160.00 for each application. The administrative fee shall be used to finance the costs of processing and investigating applications for exemption.
 
   2.   Replacement Affordable Housing Unit Exemption. An owner may, at any time, apply for exemption pursuant to the provisions of Subsection B. of this section, but must do so by written application on a form provided by the Department. If the Department issues an exemption while there are tenants residing in rental units that are subject to the provisions of the Rent Stabilization Ordinance, each of the units shall continue to be subject to the provisions of the Rent Stabilization Ordinance until all tenants in a unit voluntarily vacate the unit, or have their tenancies terminated pursuant to the provisions of Subdivisions 1., 2., 3., 4., 5., 6., 7., 9., 11., or 12. of Subsection A. of Section 151.09 of this article.
 
   An owner who files an application for exemption from the Rent Stabilization Ordinance pursuant to the provisions of this subdivision shall pay to the Department an administrative fee in the amount of $705.00 for each application, plus $75.00 for each replacement affordable housing unit. The administrative fee shall be used to finance the costs of processing and investigating applications for exemption, and continued monitoring.
 
   3.   Owner Occupancy Exemption. An owner, whose name appears on legal title to the property, may file an application for exemption from the Rent Stabilization Ordinance on the grounds that the owner is a natural person who occupied the demolished building, which consisted of four or fewer rental units, for three years prior to the demolition of the building. If the building has not yet been demolished, an owner may file an application for exemption from Subsection A. of Section 151.28 on the grounds that the building to be demolished consists of four or fewer rental units, and that the owner occupied the building for three consecutive years prior to filing an application for exemption. An owner may, at any time, apply for exemption, but must do so by written application on a form provided by the Department. If the Department issues an exemption while there are tenants residing in units that are subject to the provisions of the Rent Stabilization Ordinance, each of the units shall continue to be subject to the provisions of the Rent Stabilization Ordinance until all tenants in a unit voluntarily vacate the unit, or have their tenancies terminated pursuant to the provisions of Subdivisions 1., 2., 3., 4., 5., 6., 7., 9., 11., or 12. of Subsection A. of Section 151.09 of this article.
 
   An owner who files an application for exemption from the Rent Stabilization Ordinance pursuant to the provisions of this subdivision shall pay to the Department an administrative fee in an amount to be determined by ordinance. The administrative fee shall be used to finance the costs of processing and investigating applications for exemption.
 
   4.   Verification of Information. Information submitted in any written application to the Department for any of the exemptions outlined in this section, will be subject to verification and approval by the Department.
 
   D.   Appeals. An owner who is denied an exemption from the Rent Stabilization Ordinance for an application filed pursuant to the provisions of Subsection C. of this section may appeal the denial by requesting a hearing before the General Manager. The appeal must be filed in writing and received by the Department within 15 calendar days of the date of mailing the denial decision. The appeal must be on a form provided by the Department and identify the grounds for appeal. If an appeal from a decision to deny an exemption is not received by the Department within the 15 day appeal period, the decision will be final.
 
   An owner who files an appeal from an application for exemption filed pursuant to the provisions of Subdivisions 1. or 2. of Subsection C. of this section shall pay to the Department an administrative fee in the amount of $290.00 for each appeal. An owner who files an appeal from an application for exemption filed pursuant to the provisions of Subdivision 3. of Subsection C. of this section shall pay to the Department an administrative fee in an amount to be determined by ordinance. The fee shall be used to finance the cost of the appeal process.
 
   The General Manager’s hearing shall be held within 30 days of receiving the appeal and will follow the procedures set forth in Division 8 of Article 1 of Chapter XVI of this Code. The owner may present proof at the hearing of entitlement to an exemption, and a Department representative shall explain the reason for the denial of the exemption application.
 
   The General Manager shall issue a written decision of the appeal and may affirm, modify, or reverse the determination of the Department. The General Manager may grant a continuance of the hearing upon a showing of good cause or where further Department investigation is warranted.
 
   E.   Authority of Department. The Department shall be responsible for carrying out the provisions of this section and shall have the authority to promulgate and administer policies, rules, and regulations to effectuate the purposes of this section.
 
 
SEC. 151.29. REGULATION OF LEASES IN MOBILEHOME PARKS.
   (Added by Ord. No. 180,071, Eff. 8/30/08.)
 
   State law, including the Mobilehome Residency Law at California Civil Code Section 798, et seq., governs many aspects of agreements to rent mobilehomes. This section supplements the provisions of the State Mobilehome Residency Law.
 
   A.   Every mobilehome owner and every prospective mobilehome owner in a mobilehome park subject to the provisions of this article shall have the option to reject a rental agreement offered for the lease of a mobilehome, and to reject a rental agreement offered for the lease of the site of the mobilehome, and shall be entitled to accept a rental agreement for a term of 12 months or less, including a month-to-month agreement, pursuant to the provisions of state law and Subsection C. of this section.
 
   B.   Neither a mobilehome owner nor a prospective mobilehome owner shall be required to sign a lease or rental agreement that is exempt from the provisions of this article. Neither a mobilehome owner nor a prospective mobilehome owner shall be required to sign a lease in excess of 12 months.
 
   C.   A prospective mobilehome owner who rejects an offered rental agreement in excess of 12 months duration shall be entitled to instead accept a rental agreement for a term of 12 months or less from the date the offered rental agreement was to have begun. In the event the prospective mobilehome owner elects to have a rental agreement for a term of 12 months or less, including a month-to-month rental agreement, the rental agreement shall contain the same rental charges, terms and conditions as the rejected rental agreement during the first 12 months, except for options, if any, contained in the offered rental agreement to extend or renew the rental agreement.
 
   D.   Before any rental agreement in excess of 12 months is executed by a prospective mobilehome owner, the prospective mobilehome owner shall: (i) be offered the option of a rental agreement for a term of 12 months or less; and (ii) be informed both orally and in writing that a lease or rental agreement in excess of 12 months shall not be subject to the terms and provisions of this article.
 
   E.   A notice, which conforms to the following language and printed in at least 12-point boldface type if the rental agreement is printed, or in capital letters if the rental agreement is typed, shall be presented to the prospective mobile home owner at the time of presentation of a rental agreement creating a tenancy with a term greater than twelve months:
 
IMPORTANT NOTICE TO PROSPECTIVE MOBILEHOME OWNER REGARDING THE PROPOSED RENTAL AGREEMENT FOR _______________. PLEASE TAKE NOTICE THAT THIS RENTAL AGREEMENT CREATES A TENANCY WITH A TERM IN EXCESS OF 12 MONTHS. BY SIGNING THIS RENTAL AGREEMENT, YOU ARE EXEMPTING THIS TENANCY FROM THE PROVISIONS OF THE RENT STABILIZATION ORDINANCE OF THE CITY OF LOS ANGELES FOR THE TERM OF THIS RENTAL AGREEMENT. THE RENT STABILIZATION ORDINANCE (LOS ANGELES MUNICIPAL CODE CHAPTER XV, ARTICLE 1) AND THE STATE MOBILEHOME RESIDENCY LAW (CALIFORNIA CIVIL CODE SECTION 798, et seq.) GIVE YOU CERTAIN RIGHTS, INCLUDING THE RIGHT TO A TENANCY OF 12 MONTHS OR LESS THAT IS NOT EXEMPT FROM THE PROVISIONS OF THE RENT STABILIZATION ORDINANCE. BEFORE SIGNING THIS RENTAL AGREEMENT, YOU MAY WANT TO SEE A LAWYER. IF YOU SIGN THE RENTAL AGREEMENT, YOU MAY CANCEL THE RENTAL AGREEMENT BY NOTIFYING THE PARK MANAGEMENT IN WRITING OF THE CANCELLATION WITHIN 72 HOURS OF YOUR EXECUTION OF THE AGREEMENT. IT IS UNLAWFUL FOR A MOBILEHOME PARKOWNER OR ANY AGENT OR REPRESENTATIVE OF THE OWNER TO DISCRIMINATE OR RETALIATE AGAINST YOU BECAUSE OF THE EXERCISE OF ANY RIGHTS YOU MAY HAVE UNDER THE RENT STABILIZATION ORDINANCE OF THE CITY OF LOS ANGELES, OR BECAUSE OF YOUR CHOICE TO ENTER INTO A RENTAL AGREEMENT THAT IS SUBJECT TO THE PROVISIONS OF THAT ORDINANCE.
 
   F.   The Notice described in Subsection E. of this section shall contain a place for the prospective mobilehome owner to acknowledge receipt of the notice and shall also contain an acknowledgment signed under penalty of perjury by the person offering the rental agreement that the notice has been given to the prospective mobilehome owner in accordance with the previous subsection. A copy of the notice executed by the person offering the rental agreement shall be provided to the prospective mobilehome owner.
 
   G.   A prospective mobilehome owner may cancel a mobilehome rental agreement by notifying park management in writing of the cancellation within 72 hours of the execution of the agreement.
 
 
SEC. 151.30. EVICTIONS FOR OWNER, FAMILY, OR RESIDENT MANAGER OCCUPANCY.
   (Added by Ord. No. 180,747, Eff. 8/1/09.)
 
   Notwithstanding any provision of this Chapter to the contrary, if a landlord seeks to recover possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 of this Code, the following provisions shall apply:
 
   A.   Ownership Requirement. A landlord may recover possession of a rental unit pursuant to the provisions of Paragraph a of Subdivision 8. of Subsection A. of Section 151.09 only if the landlord is a natural person who possesses legal title to at least 25 percent of the property containing the rental unit, or is a beneficiary with an interest of at least 25 percent in a trust that owns the property. A landlord may recover possession of a rental unit pursuant to the provisions of Paragraph b. of Subdivision 8. of Subsection A. of Section 151.09 only if the landlord is a natural person who possesses legal title to at least 50 percent of the property containing the rental unit, or is a beneficiary with an interest of at least 50 percent in a trust that owns the property. A landlord may recover possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 for use and occupancy by the landlord, landlord’s spouse, grandchild, child, parent, or grandparent only once for that person in each rental complex of the landlord.
 
   B.   Residency Requirements for Replacement Occupant. The landlord must in good faith intend that the owner, eligible relative, or a resident manager will occupy the rental unit within three months after the existing tenant vacates the rental unit, and that the owner, eligible relative, or a resident manager will occupy the rental unit as a primary residence for a period of two consecutive years. Failure of the owner, eligible relative, or a resident manager to occupy the rental unit within three months after the existing tenant vacates the unit, or failure of the owner, eligible relative, or a resident manager to occupy the rental unit as a primary residence for a period of two consecutive years, may be evidence that the landlord acted in bad faith in recovering possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09. It will not be evidence of bad faith if a landlord recovers possession of a rental unit for use and occupancy by a resident manager, and during the next two years replaces the resident manager with a different resident manager.
 
   C.   Comparable Rental Unit. A landlord may not recover possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 if there is a comparable rental unit in the building that is vacant, except that where a building has an existing resident manager, the landlord may evict the existing resident manager in order to replace the existing resident manager with a new manager. (Amended by Ord. No. 184,822, Eff. 4/30/17.)
 
   D.   Tenants Eligible for Termination of Tenancy.
 
   1.   Protected tenants. A landlord may not recover possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 if:
 
   (a)   any tenant in the rental unit has continuously resided in the rental unit for at least ten years, and is either: (i) 62 years of age or older; or (ii) disabled as defined in Title 42 United States Code Section 423 or handicapped as defined in Section 50072 of the California Health and Safety Code; or
 
   (b)   any tenant in the rental unit is terminally ill as certified by a treating physician licensed to practice in the State of California.
 
   2.   Application to most recent tenant. A landlord may recover possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 only from a tenant who is the most recent tenant, not protected from termination of tenancy pursuant to the provisions of Subdivision (1) of this Subsection, to occupy a rental unit in the building with the same number of bedrooms needed by the landlord, the landlord’s eligible relative or the resident manager, except that a landlord may recover possession from a different tenant if a different unit is required because of medical necessity, as certified by a treating physician licensed to practice in the State of California.
 
   E.   Relocation Fees. A landlord who terminates a tenancy pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 shall pay a relocation fee pursuant to the provisions of Subsection G. of Section 151.09, except in the following circumstance:
 
   If the termination of tenancy is based on the grounds set forth in Paragraphs (a) or (b) of Subdivision 8. of Subsection A. of Section 151.09, and all of the following conditions exist: (1) the building containing the rental unit contains four or fewer rental units; (2) within the previous three years the landlord has not paid the fee authorized by this Subsection to any tenant who resided in the building; (3) the landlord owns, in the City of Los Angeles, no more than four units of residential property and a single-family home on a separate lot; and (4) any eligible relative for whom the landlord is recovering possession of the rental unit does not own any residential property in the City of Los Angeles; then the landlord shall pay a relocation fee of $14,000 to qualified tenants and a fee of $7,000 to all other tenants. If more than one fee applies to a rental unit, the landlord shall pay the highest of the applicable fees. 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. The fee payment shall be made in accordance with the provisions of Subdivisions 1., 2., and 3. of Subsection G. of Section 151.09, and the provisions of Subdivision 4. of Subsection G. of Section 151.09 apply to determine whether a relocation fee is owed.
 
   F.   Post-Tenancy Termination Filing Requirements.
 
   (1)   Three month filing requirement. Within three months of a tenant’s vacation of a rental unit, a landlord who recovered possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 shall file with the Department a statement under penalty of perjury that the rental unit is occupied by the landlord, eligible relative, or resident manager for whom the landlord terminated the tenancy, or an explanation why the rental unit is not occupied by the landlord, eligible relative, or resident manager for whom the landlord terminated the tenancy.
 
   (2)   Annual filing requirements. A landlord who recovers possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 must, within thirty days preceding the first and second year anniversary of the tenant’s vacation of the rental unit, file with the Department a statement under penalty of perjury regarding the continued occupancy of the rental unit by the landlord, eligible relative, or a resident manager. The statement must confirm the continued occupancy by the landlord, eligible relative, or a resident manager, or if the occupancy did not continue, the statement must explain why the rental unit is not occupied by such person.
 
   G.   Tenant Re-Rental Rights. A landlord who offers a rental unit that was the subject of a tenancy termination pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09 for rent or lease within two years after the tenant vacated the rental unit shall first offer to rent the rental unit to the displaced tenant or tenants, provided that the tenant or tenants advised the landlord in writing within 30 days of displacement of the tenant’s desire to consider an offer to renew the tenancy and provided the landlord and Department with an address to which to direct the offer. The tenant or tenants may advise the landlord and Department any time during the two year period of eligibility of a change of address to which to direct the offer.
 
   A landlord who offers to rent or lease a rental unit to a previously displaced tenant pursuant to the provisions of this Subsection shall deposit the offer in the United States mail, by registered or certified mail with postage prepaid, addressed to the displaced tenant or tenants at the address furnished to the landlord as provided in this Subsection, and shall describe the terms of the offer. The displaced tenant or tenants shall have 30 days from the deposit of the offer in the mail to accept the offer by personal delivery of that acceptance or by deposit of the acceptance in the United States mail by registered or certified mail with postage prepaid.
 
   H.   Notice of Re-Rental. If a landlord desires to offer for rent or lease a rental unit that was the subject of a tenancy termination pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09, the landlord must file with the Department a Notice of Intention to Re-Rent Rental Unit on a form prescribed by the Department. The form must be filed before renting or leasing the rental unit.
 
   I.   Penalties. In addition to all other penalties authorized by law, the following penalties apply for violations of the provisions of Subdivision 8. of Subsection A. of Section 151.09, and of this Section:
 
   (1)   If a landlord acts in bad faith in recovering possession of a rental unit pursuant to the provisions of Subdivision 8. of Subsection A. of Section 151.09, the landlord shall be liable to any tenant who was displaced from the property for three times the amount of actual damages, exemplary damages, equitable relief, and attorneys’ fees. The City may institute a civil proceeding for equitable relief and exemplary damages for displacement of tenants. Nothing in this paragraph precludes a tenant or the City from pursuing any other remedy available under the law.
 
   (2)   A landlord who fails to file a statement under penalty of perjury as required by the provisions of Subsection F. of this Section, or a notice as required by the provisions of Subsection H. of this Section, shall pay a fine in the amount of $250 per day for each day that the statement or notice is delinquent.
 
 
SEC. 151.31. TENANT BUYOUT NOTIFICATION PROGRAM.
   (Added by Ord. No. 184,673, Eff. 1/25/17.)
 
   A.   Purpose. The Tenant Buyout Notification Program provides for regulation, monitoring and enforcement of voluntary vacancies of RSO rental units occurring pursuant to a Buyout Agreement. To promote fairness during buyout negotiations and agreements, this section requires tenants be informed of their RSO rights before executing a Buyout Agreement.
 
   1.   The Rent Adjustment Commission may promulgate regulations to implement this section.
 
   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 Chapter, if defined therein.
 
   Buyout Agreement. A written agreement where a landlord pays a tenant money or offers other consideration to voluntarily vacate an RSO rental unit.
 
   Buyout Offer. An offer, written or oral, by a landlord to a tenant to pay money or other consideration to vacate an RSO unit.
 
   C.   RSO Disclosure Notice. Before making a Buyout Offer, the landlord shall provide the tenant(s) with the RSO Disclosure Notice of tenant rights on a form authorized by the Department, which shall be dated and signed by the landlord and the tenant(s).
 
   D.   Buyout Agreement Requirements.
 
   1.   Written Buyout Agreement.
 
   a.   Every Buyout Agreement shall be written in the primary language of the tenant and state in a minimum of 12-point bold type above the tenant signature line as follows:
 
“You, (tenant name), may cancel this Buyout Agreement any time up to 30 days after all parties have signed this Agreement without any obligation or penalty.”
 
   b.   Every Buyout Agreement shall be signed and dated by the landlord and tenant.
 
   c.   A copy of the fully executed Buyout Agreement shall be given to the tenant.
 
   2.   Cancellation of Buyout Agreement.
 
   a.   A tenant shall have the right to cancel a Buyout Agreement for any reason for up to 30 days after execution by the landlord and the tenant without any financial obligation or penalty.
 
   b.   Whenever an RSO Disclosure Notice and/or Buyout Agreement does not conform to the requirements of this section or RAC Regulations, the tenant shall have the right to cancel the Buyout Agreement through the applicable statute of limitations period.
 
   3.   Filing Executed RSO Disclosure Notice and Buyout Agreement. The landlord shall file with the Department copies of the RSO Disclosure Notice signed by the tenant and the landlord, and the Buyout Agreement within 60 days of the Buyout Agreement execution.
 
   E.   Affirmative Defense. A violation of this section may be asserted as an affirmative defense in an unlawful detainer action.
 
   F.   Private Right of Action. A tenant may bring a private right of action against a landlord who violates a provision of this section and recover damages and a penalty of $500.
 
 
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