April2019Issue

22 APRIL 2019 • WWW.AAGLA.ORG Effective on July 1st, 2019, the City of Los Angeles is permitting rental properties subject to its Rent Stabilization Ordinance (RSO) to increase rent by up to 4.0% per year. For years the allowable annual increase had been fixed at just 3.0%. Owners of RSO rental units are also required to pay interest on security deposits held for at least one year. Interest owed must be determined by either using actual documented interest on individual security deposit accounts or by paying interest in accordance with the rates established by the City. Deposits held during the year of 2018 had an annual interest rate of 0.07%, and deposits held during the year of 2019 will have an annual interest rate of 0.06%. In addition, any owners providing tenants with a 30-day notice of “Change of Terms of Tenancy Annual Rental Surcharge” may collect 50% of the Annual RSO Registration Fee, or $24.51, from their tenants during the month of August only. Moreover, owners may pass-through 100% of the annual Systematic Code Enforcement Program (SCEP) Fee in the amount of $43.32 via a monthly surcharge of $3.61. This SCEP Fee can only be passed-through if the owner has actually paid the SCEP Fee and provided the tenant with a 30-day written notice. Mona Begum is an Operational Advisor at the Apartment Association of Greater Los Angeles. You can reach Mona at (213) 384-4131, Ext. 304 or at mona@aagla.org . By Mona Begum, Operational Advisor, AAGLA CITY OF LOS ANGELES “UPS” THE ALLOWABLE RENT INCREASE TO 4% Other Important Updates and Changes for 2019 Member Update Most rental housing providers in the City of Inglewood will be temporarily barred from raising rents by more than 5 percent—and from evicting tenants—under an emergency rent control ordinance unanimously adopted by the City Council. The rent freeze will be in place for 45 days, effective March 5, 2019. Further, the rent freeze can be extended for up to one year. It applies to apartment buildings, duplexes, and other rental units built prior to February 1, 1995. Under the Costa-Hawkins Rental Housing Act, the new law does not affect single-family homes nor condominiums. Rental property owners will not be allowed to raise rents by more than 5 percent above the amount their renters paid on March 5, 2019, and they will not be allowed to evict renters, without “Just Cause.” Under the Inglewood ordinance, “Just Cause” includes evictions for: (i) non-payment of rent; (ii) criminal activity; and/or (iii) illegal drug use. By Craig Mordoh, AAGLA General Counsel CITY OF INGLEWOOD PASSES TEMPORARY RENT FREEZE