(Article and Section Added by Ord. No. 171,884, Eff. 2/6/98.)
Many Los Angeles City tenants reside in master-metered apartment buildings and pay for essential utility service through their rent payment to the landlord. The landlord has the financial obligation to pay the Department of Water and Power for utility services.
A crisis now exists in the City. There are approximately 11,000 master-metered apartment buildings whose owners have failed to pay for utility services. Tenants who pay rent which include the cost of utilities face utility service termination due to the diversion of funds by the owners. The termination of utility service to a master-metered apartment building would make the building uninhabitable pursuant to California Civil Code Section 1941.1 et seq.
The purpose of this ordinance is to offer tenants an alternative to service termination in master-metered apartment buildings. Tenants who participate in the Utility Maintenance Program (UMP) have the option of paying their rent into an escrow account to maintain their utility services. The UMP is built on the existing Rent Escrow Account Program (REAP).