Rent Ordinance $31/Unit Fee Funds 63 New Hires

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  • Tenant Protection Act of 2019
    Assembly Bill 1482 (“TPA”), which prohibits evictions without “just cause” and owners of
    residential rental property from increasing rents more than 5 percent plus the
    percentage change in the cost of living or 10 percent, whichever is lower, per year
  • The Just Cause Ordinance (JCO), does not regulate rent increases, covers most residential properties in the City of Los Angeles that are not regulated by the City’s Rent Stabilization Ordinance (RSO), including rental units built after October 1, 1978.  
    •  An ordinance adding Article 5 to Chapter XVI of the Los Angeles Municipal Code
      prohibiting terminations of tenancies without just cause and requiring relocation
      assistance for no-fault evictions, as specified; amending the Rent Stabilization
      Ordinance's provisions on resident manager evictions
      , tenant notifications, and
      relocation assistance; and repealing duplicative or expired provisions of the Los
      Angeles Municipal Code relating to evictions.   
    • Approximately 76 percent of the multi-family rental units in the City of Los
      Angeles are regulated by the Rent Stabilization Ordinance (“RSO”), which protects
      renters from excessive rent increases and arbitrary evictions. Approximately 138,000 households not covered by the RSO.
  • The annual Just Cause Enforcement Fee of $31.05 per unit applies to the 381,173 rental properties covered by the JCO. This new fee was unanimously approved by the Los Angeles City Council on 1/7/25 and is effective immediately, with the initial payment deadline set for February 28, 2025.  Communication from Housing Department submitted 10-29-24 - Presentation.pdf
    • Monies collected from fees and from fines and penalties shall be deposited into the Fund. The monies in this Fund shall be used to offset the costs of administering or processing those permits, certificates, or other forms or documents, or to defray the costs of enforcement required to be carried out by City agencies in the course of enforcing Article 5 of Chapter XVI, including, but not limited to, the costs of investigating tenant complaints, and fees for copies of reports and records related to the enforcement activity.
    • Monies not expended from the Fund in any fiscal year shall not revert to
      the Reserve Fund, but shall remain in the Fund.
    • Initially in October 2024 there were supposed to be 45 new employees that was revised to 63 employees added to the existing 132 employees  JUST CAUSE FOR EVICTION ORDINANCE AND EXPANDED TENANT PROTECTIONS OVERVIEW AND RECOMMENDATIONS

The City representatives cited in January 2023 there were 138,000 households not covered by the Rent Stabilzation Ordinance. Or approximately 76 percent of the multi-family rental units in the City of Los Angeles are regulated by the Rent Stabilization Ordinance (“RSO”).  Which would suggest there were 575,000 families now covered by JCO and/or RSO. 

However, in January 2025 the number covered by the JCA was cited as 381,173 rental properties. $31.05 x 381,173 = $11,835,421.65. If all the $31.05 does is fund those extra 63 people, then their average salary is $187,863.84.

Annual fees for multi-unit residential rental homes are subject to various annual fees:

Rent Stabilization Ordinance (RSO)

Annual bill for rental properties that rent or intend to rent unit(s) and are subject to the annual RSO fees.

$38.75 (Per Unit)

Systematic Code Enforcement Program (SCEP)

Annual bill for rental properties that rent or intend to rent unit(s) and are subject to the annual SCEP fees.

$67.94 (Per Unit)

Just Cause Enforcement Fee

Live Webinars For Landlords – New Fee for Rental Properties Subject to the Just Cause for Eviction Ordinance (JCO) – LAHD

$31.05 (Per Unit)

Annual RSO/SCEP Bill – LAHD

Edit: 1/31/25 12:16 pm inserting details of...."An ordinance adding Article 5 to Chapter XVI of the Los Angeles Municipal Code"

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