8.100.1140   Escrow account.
   A.   Within ten (10) working days after the decision of the board or the hearing officer accepting a building into REAP becomes final, the secretary shall establish as part of the REAP trust fund an account for such building into which tenants of untenantable residential units of such building may deposit rent payments. The secretary shall mail notification to all such tenants of the existence of the account, including an explanation of how payments may be deposited into the account. The secretary shall provide a receipt to each tenant making a deposit. The secretary shall provide, at least once a month, a periodic report to the landlord and the tenants concerning the activity in such account. The records of such account shall be reasonably available to the landlord or any interested party, or their representatives, in accordance with such regulations, including the provision for payment of reasonable fees, as the board may promulgate.
   B.   The gross amount of payment made into the account by or on behalf of a tenant shall be deemed as a payment in the same amount to the landlord, including, but not limited to, for the purpose of determining whether a tenant has paid rent. In any action by a landlord to recover possession of a residential unit, the tenant may raise the fact of payments into REAP as an affirmative defense in the same manner as if such payments had been made to and accepted by the landlord.
   C.   A landlord may bring an action to recover possession of a rental unit that has been accepted into the REAP program only upon one or more of the following grounds:
      1.   The tenant has failed to pay rent into REAP or to the landlord.
      2.   The tenant has violated a lawful obligation or covenant of the tenancy and has failed to cure such violation after having received written notice thereof from the landlord.
      3.   The tenant is committing or permitting to exist a nuisance in, or is causing damage to, the rental unit or to the appurtenances thereof, 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 same or any adjacent building.
      4.   The tenant is using or permitting a rental unit to be used for any illegal purpose. The term "illegal purpose" as used in this subdivision includes, but is not limited to, the conviction of a tenant or tenants of possession for sale or sale of illegal drugs from the rental unit.
      5.   The tenant has refused the landlord reasonable entry pursuant to Civil Code Section 1954.
   D.   Prior to or at the same time as the written notice of termination described in Civil Code Section 1946, or the three days' notice described in Code of Civil Procedure, Sections 1161 and 1161a, is served on the tenant of a rental unit, the landlord shall serve on the tenant a written notice setting forth the reasons for the termination with specific facts to permit a determination of the date, place, witnesses and circumstances concerning the reason. This notice shall be given in the manner prescribed by Code of Civil Procedure, Section 1162.
   E.   If the landlord is seeking to recover possession of a residential unit in retaliation against the tenant for exercising his or her rights under this article or because of his or her complaint to an appropriate agency as to the tenantability of a residential unit, or because of city action under this article, then the landlord may not recover possession of a residential unit in any action or proceeding or cause the tenant to quit involuntarily.
   F.   If any action by a landlord to recover possession of a rental unit, the tenant may raise as an affirmative defense any of the provisions set forth in subsections B, C, D, and E of this section or Section 8.100.1160 of this chapter. Violation of subsections B, C, D, and E shall not constitute a misdemeanor.
   G.   The secretary shall deduct a nonrefundable administrative fee of fifty dollars ($50.00) for each individual rent payment made into the account. Only one such fee shall be deducted for each residential unit for each month.
   H.   The funds paid into the escrow account shall only be expended on the following items:
      1.   The nonrefundable administrative fee provided under Subsection D of this section;
      2.   Funds returned to the landlord where the landlord has provided the secretary with proof of compliance that the deficiencies have been corrected;
      3.   Funds paid in accordance with a court order;
      4.   Funds paid to the landlord, an interested party, tenant, creditor, utility, or other person or entity pursuant to an order of the board;
      5.   Funds paid in accordance with and pursuant to such regulations as the board may promulgate. (Prior code § 49.14.1408)