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An apartment owner group is taking the city of Los Angeles to court over some of its recently passed renter protections.
The Apartment Association of Greater Los Angeles filed a complaint in Los Angeles County Superior Court seeking a temporary injunction against two of the renter protections that were passed earlier this year by the Los Angeles City Council.
AAGLA says that one such ordinance’s requirement that a monetary threshold for overdue rent be met before the landlord can start eviction proceedings conflicts with the existing state law that allows property owners to give tenants a three-day notice to quit or pay “at any time within one year after the rent becomes due,” regardless of how much rent is owed, the organization says in the complaint.
The other ordinance AAGLA is challenging requires landlords to pay relocation fees to tenants who, when faced with a rent increase exceeding a certain percentage of their rent, choose to leave their unit. This regulation would apply to all rental units, even those not covered by state rent stabilization laws. The complaint says doing so effectively imposes a rent cap on all units, creating a de facto rent control on units by “financially penalizing rental housing providers who attempt to raise rents above the specified limits.” AAGLA says it therefore conflicts with the existing laws about which units are subject to rent control.
AAGLA members and staff participated heavily in public comment during city council meetings where these new regulations were discussed, speaking about the potentially disastrous effects of the policies on their livelihood.
“The last thing I want to waste money on is lawsuits, but all of our advocacy efforts just aren't resonating with the city council members” who are “completely ignoring the needs of small rental property owners,” AAGLA Executive Director Daniel Yukelson told Bisnow.
Mateo Gil, a community organizer with Strategic Actions for a Just Economy, said he still sees a steady tide of renters being evicted come through the tenant action clinic where he works. Countywide, work by the Anti-Eviction Mapping Project has found higher rates of eviction now than pre-pandemic. Gil said that is a sign that the impacts of the coronavirus pandemic are still dragging on renters and they need more help and time to get back on their feet.
The monetary threshold for eviction “is very important to have, so that tenants can have a chance to catch up,” Gil said.
Universe Holdings CEO Henry Manoucheri said though he still owns about 1,000 units in Los Angeles, he isn't planning on transacting in Los Angeles because of recent legislation, including these new renter protections and Measure ULA. Manoucheri said he has seen a trend since the pandemic that is unfavorable to property owners — and it is a trend he worries will continue.
“We are staying away from LA,” Manoucheri said.
He is still transacting and interested in owning in the Inland Empire, Orange County and San Diego, which don’t have the same restrictions he sees in LA, he said.
The complaint seeks a preliminary injunction and a temporary restraining order to prevent enforcement of the rules. Yukelson said the association is working to get a hearing as soon as possible.
“We’ve got more [lawsuits] coming against the city of LA,” Yukelson said.
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