New Eviction Law Passes AB2819

New Eviction Law AB2819

Anyone who operates multi-family properties knows that tenant evictions are always an uphill legal battle. The burden of proof is squarely on the landlord, and the courts almost exclusively favor tenants - particularly when the apartment unit is under rent control.

In California, thanks to the recently passed AB2819, this uphill battle just got steeper.

In September, Governor Brown signed AB2819 into law, changing the civil code regarding eviction records. 

Now, unless a landlord obtains a judgment against a tenant within 60 days from filing of the unlawful detainer, the results of the case will be permanently sealed.

As anyone who has ever dealt with a legal eviction before knows, it is almost impossible to obtain judgment in under 60-days. Tenant rights advocates and attorneys can easily request a jury trial or file frivolous court motions, tactics designed to extend the eviction case beyond 60 days and prevent a judgment.

AB2819 means that there will be no record of the unlawful detainer or eviction, making it more difficult for landlords to perform proper tenant screening. 

AB2819 automatically and permanently seals all limited Unlawful Detainers unless:

• the landlord wins the lawsuit within 60 days of filing or

• after 60 days only if the landlord wins the judgment and the court allows public access to the record.

There is nothing to prevent tenants from jumping from building to building, skirting the system, with free legal aid and laws to protect them.

BELOW IS OUR ADVICE TO LANDLORDS:

Earthquake Retrofit Work- Tenant Habitability Plan

INTRODUCTION

In October 2015 the Los Angeles City Council unanimously approved one of the nation’s toughest retrofitting ordinances, mandating seismic upgrades aimed at improving earthquake safety in over 14,000 buildings throughout the city. 

This guide is designed to help property owners understand and navigate the complex process of compliance with the Tenant Habitability Plan, which is a core requirement that must be fulfilled prior to retrofitting work being approved or permitted. We believe every property owner should be informed.

WHAT IS THE TENANT HABITABILITY PLAN? 

The Tenant Habitability Plan is a new requirement that has been imposed jointly between the Los Angeles Housing & Community Investment Department and the Department of Building & Safety to ensure property owner compliance with all housing regulations when conducting construction and upgrades. Most property owners are unaware of this new requirement, which can be lengthy and complicated. 

The Tenant Habitability Plan was originally adopted by the City of Los Angeles to encourage owners of apartment properties to renovate and update their properties. A key benefit of the Plan was that property owners could perform improvements and pass through a portion of the associated costs to the tenants. The Tenant Habitability Plan is of great value for multifamily property owners who elect to update and refurbish properties at their own discretion, but not necessarily for owners under the burden of mandatory compliance with ordinances such as the soft-story retrofitting requirements. 

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WHAT IS THE PROCESS? 

STEP 1: Preparing & Serving of Notice of Work 

Property owners must provide every tenant with: 

• Estimated start and end dates of proposed construction/ renovation work for which the Tenant Habitability Plan is being prepared for; 
• Comprehensive details of the work to be performed. This needs to describe the potential disturbance and impact on each tenant and household; 

Property owners must provide an individual plan for every unit in their building. 

• Detailed plans outlining the temporary or permanent relocation plans for each individual tenant. Owners must outline where tenants will be relocated to, per diem amounts to be provided, efforts owners will undertake to assist with relocation to and from the property; 
• Detailed contact information for the Los Angeles Housing Department and Habitability Department; 
• Notice of their rights to reoccupy their units under the same terms as prior to their relocation; 
• Notice that they have the right to appeal the Tenant Habitability Plan with the Los Angeles Housing Department within 15 Days of being served by Landlord.

Key Items to Consider: 

Owners of properties built prior to 1979 must obtain a comprehensive lead-based paint and asbestos report from a licensed contractor. Testing generally includes interior walls, doorways, windows, and ceilings. In addition, all exterior stucco and roofing is also tested. All asbestos and lead based paint must be properly treated and abated prior to commencement of retrofitting. 

The Notice of Work must be served to all tenants 60 Days prior to commencement of retrofit work. 

Tenants do not have to agree to the owner’s plan and may appeal the Tenant Habitability Plan with the Los Angeles Housing Department. 

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STEP 2 Preparing THE TENANT HABITIABILITY PLAN FOR DEPARTMENT OF HOUSING REVIEW

Application package must: 

• Clearly identify the property owner and the general contractor and sub-contractors responsible for the construction and retrofitting work; 
• Clearly identify all affected tenants, including their names, current rent, date of their last rent increase, and phone numbers. The Housing Department will call to verify compliance with notice timelines and tenants’ acceptance of Tenant Habitability Plan; 
• Provide a detailed description of all aspects of the work involved, including estimates of the anticipated time-frame and cost of the entire project. Application must break down the work to be completed, estimated time-frame of the work, and anticipated costs for each affected unit; 
• Clearly identify the impact of the work to each individual tenant. This must include expected disturbance resulting from noise, utility interruption, potential exposure to hazardous material, potential interruption of fire safety systems, potential inaccessibility to all or portions of the building and common areas, and possible disruption of any other tenant services; 
• Clearly identify mitigation measures that will be adopted to minimize disturbances and effects to tenants. This may include the adoption of work procedures that will allow tenants to remain in their units and/or the relocation of tenants. 
• Identify the potential impact of the work on the personal property of the tenants. This must include how personal belongings and furniture will be protected from dust, debris, and hazardous materials, and protection of personal property from theft or damage; and, 
• Provide the Housing Department proof that the tenants have been served the “Notice of Work” in a timely manner. 

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STEP 3 REVIEW AND APPROVAL OF PLAN BY DEPARTMENT OF HOUSING

The Department of Building and Safety will not issue permits for retrofitting work prior to receiving approval from the Housing Department that the Tenant Habitability Plan has been submitted and approved. 

• Within five days of submission, the Housing Department will determine whether the Tenant Habitability plan submitted by the property owner meets the minimum standards. 
• Approval is subject to the owner having a zero-balance for code enforcement and rent registration fees. 
• The Housing Department will contact each tenant and verify their approval of the Plan, and ensure timely receipt of notices. 
• Following review, the Housing Department may provide owners with corrections. Upon completion of the corrections, the Plan may be re-submitted for additional review and approval. 

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Peter Strauss- March/April 2016 Closings

In March & April of 2016, Peter Strauss of Iconic Investments listed and sold five multi-family apartment buildings in Los Angeles. The apartment buildings were located in Koreatown, Los Feliz, Pico-Union, Highland Park and Hollywood. Iconic Investments' market efforts generated great interest from a large number of buyers, resulting in multiple offers on each of the five properties. If you're looking to sell any of your apartment buildings, call Iconic Investments! Our marketing program has proven to net sellers the most amount of money. 

LA Approves Nation's Toughest Earthquake Safety Rules

 

Los Angeles Mayor Eric Garcetti on Friday signed the nation's strongest earthquake safety laws, requiring that the owners of an estimated 15,000 buildings most at risk of collapse during a major quake make the structures stronger.

Garcetti's move came after the Los Angeles City Council voted 12-0 in favor of the plan, which caps decades of debate over whether the city -- located in the heart of California earthquake country -- should force building owners to retrofit structures that could fail.
Studies estimate that a massive earthquake in the Los Angeles area could kill 3,000 to 18,000 people and cause up to $250 billion in damage.

The ordinance targets two of the most dangerous types of buildings: brittle concrete buildings and wood apartment complexes with weak first stories, which have killed more than 65 people in Los Angeles’ last two major earthquakes.

The mandatory upgrades will be costly. Many wood apartment retrofits can cost $60,000 to $130,000, and taller concrete buildings can cost millions of dollars to strengthen.

Owner groups now say they agree that fixing the buildings is essential.

“We want the buildings to be safe,” said Martha Cox-Nitikman, vice president of the Building Owners and Managers Assn. of Greater Los Angeles. “But we need to figure out how we get people there without ruining businesses.”

Wood apartment buildings will be given seven years to complete construction once an owner is ordered by the Department of Building and Safety to retrofit the building. Owners of brittle concrete buildings will have 25 years to do the work.

How the retrofits will be paid for is a work in progress.

The City Council has not decided how costs will be shared between tenants and owners of residential buildings. The law currently allows owners to increase rents up to $75 a month to pay for a required earthquake retrofit, but both sides say they do not think Los Angeles renters can afford such a hike.

The city’s housing department has suggested that renters and owners pay for the retrofit on a 50-50 basis, allowing owners to charge a monthly maximum surcharge of $38 to pay for the seismic retrofit. (Apartments in Los Angeles built before Oct. 1, 1978, are generally under rent control, which means the city restricts how much the rent can be increased annually.)

CLICK HERE to read the full article.

Call me for additional information and to find out how this new regulation may affect you.