Amid skyrocketing rents and a housing crisis, Los Angeles Mayor Eric Garcetti Friday signed and praised a new law that aims to strengthen enforcement of the city's Rent Stabilization Ordinance.
The law will require landlords who demolish rent-controlled units under the Ellis Act to either replace them one-for-one with affordable units or make 20 percent of new units affordable, depending on which is higher.
"We're growing L.A.'s housing stock to meet our residents' growing demand in every way possible -- including strengthening our stock of rent stabilized housing. But we need to make sure that it is done in a way that's fair to all Angelenos by protecting people from being priced out of communities where they have invested so much of their lives," Garcetti said. "The law I signed today is a great step in the right direction."
The new law will also increase regulations of the Ellis Act, the law that allows landlords to evict residents as they seek to get out of the rental business.
"As chair of Housing, I'd like to thank Mayor Garcetti for his commitment to protect tenant rights and affordable housing," said Councilman Gil Cedillo. "The City Council approved my Ellis Act amendments to the RSO, which will close loopholes used to evict tenants and remove affordable housing units off the market. By preserving affordable housing, we will ensure that Los Angeles is a livable city."
Numerous studies over the last several years have found that Los Angeles is suffering from a housing shortage and has an average rent price among the highest in the nation.
"One of our goals, as elected leaders, must be addressing the loss of existing affordable housing to new, unaffordable development, and these amendments take an important step in that direction," said Councilman Paul Koretz.
Garcetti's office said half of the city's families live in an apartment covered by the RSO.
"Preserving affordable housing is how we preserve the character and inclusivity of our neighborhoods," Councilman Mike Bonin said. Strengthening our rent control rules to better protect affordable housing is good for families throughout Los Angeles."
The new law expands relocation services for displaced tenants, requires owners to re-start the Ellis process if withdrawn units are re-rented, tightens rules when units are demolished without necessary approvals, requires landlords to file annual reports and preserves RSO units by raising the requirements to obtain an exemption for new replacement units.
"The city of Los Angeles must do everything in its power to protect our rent-controlled affordable housing stock," said Councilman Jose Huizar. "With every lost RSO unit, our friends, families and neighbors are potentially displaced and priced out of a difficult housing market. By strengthening these Ellis Act restrictions and RSO requirements, we are taking an important step forward in protecting Angelenos."