Background
The Apartment Association of Greater Los Angeles filed a federal lawsuit against the city of Los Angeles on Thursday, June 11, 2020 for stripping protections from evictions due to the COVID-19 pandemic. The plaintiffs in the case (Apartment Association of Greater Los Angeles) argue that the city has violated landlords’ 5th Amendment rights against the government for taking property without compensation in the city’s efforts to prevent evictions against those who are unable to pay their rent due to the pandemic, either financially or health-wise. The lawsuit is also targeting Los Angeles City Council’s Rent Stabilization Ordinance to cease rent increases on more than 600,000 apartments that are covered by the Ordinance.
What is Rent Stabilization?
Rent stabilization are local laws that standardize amounts of rent increases and extend eviction protections. The County of Los Angeles Board of Supervisors sanctioned a Permanent Rent Stabilization Ordinance for qualified rental units in unincorporated areas (land regions not governed by a local municipal corporation) of Los Angeles County. Los Angeles City Council’s Rent Stabilization Ordinance took effect on April 1, 2020 and covers more than 600,000 apartments in Los Angeles County. The Ordinance includes:
- A maximum cap for rent increases as established by the County
- A “Just Cause” provision for evictions, even if the unit is uncovered by the rent restrictions in the Ordinance
- A process to increase rent above the annual cap for property owners who feel they are not recieveing a fair return on their property
- A process for property owners to pass down a portion of the costs for select property improvements and/or renovations to renters
- A provision allowing property owners with a 50 or fewer rental units to pass on the direct cost of the Measure W parcel tax to renters. ***The direct cost is separate from rent increases
- The Measure W parcel tax creates special tax for parcels in Los Angeles County Flood Control District, which covers the majority of Los Angeles County. The tax revenue pays for projects, infrastucture, and programs to capture and recycle rainwater and is paid for by property owners.
- An annual register of all rental units, including changes in tenancy, rental rate, and amenities
- A provision necessitating relocation assistance for “no fault” evictions and select temporary displacements
- Click here for more information on Los Angeles’s Renter protections
Los Angeles County’s Rent Stabilization Ordinance’s Roll in the Anti-Eviction Lawsuit
If the Ordinance stands, the Apartment Association of Greater Los Angeles argues that it violates property owners’ and landlords’ rights under California and United States Constitutions and inflicts widespread economic damage on property owners and landlords in Los Angeles. Although the eviction bans and rent freezes put in place due to the COVID-19 pandemic protect tenants who cannot pay their rent due to heath reasons and job and wage loss (in direct relation to COVID-19), it also allows tenants to ignore their contractual obligations even if able to pay their rent. The plaintiffs are thus seeking a court order to invalidate eviction bans and rent freezes.
For a detailed overview on the Rent Stabilization Ordinance:
https://hcidla2.lacity.org/RSO-Overview
For assistance, the Los Angeles Department of Consumer and Business Affairs (DCBA) Rent Stabilization Program is providing essential services in the following:
- Phone: (833) 223-7368
- Online: rent.lacounty.gov
- Email: rent@dcba.lacounty.gov
- Direct messaging: @LACountyDCBA on Twitter, Facebook, and Instagram
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