The City’s Roadmap for Rent Stabilization This Fall

Beverly Hills City Council continues its 18-month long discussion about rent stabilization starting at its August 7th meeting, where staff will present findings from the city’s consultant study for consideration. Council will also identify the next steps in the policy process, which may include yet more facilitated dialogues between tenants and landlords. Then City Council will get down to business on a final rent stabilization ordinance in September or October. This process will move very quickly come the end of the summer with the process wrapped up before the holidays. Here’s what to expect! Read More The City’s Roadmap for Rent Stabilization This Fall

The Heat is Here!

Heatwave July 2018The summer heat has finally arrived! And with it comes special dangers for a senior who may not have air conditioning in her apartment. A recent heat warning spelled out the danger:

…EXCESSIVE HEAT WARNING REMAINS IN EFFECT FROM 10 AM FRIDAY TO 9 PM PDT SATURDAY.. HIGH TEMPERATURES…Record heat likely. Increased potential for serious heat-related illnesses, especially for the young and elderly, those performing outdoor activities, as well as those without access to air conditioning.

Seniors without air conditioning who reside on the upper floors of older buildings are most vulnerable. Check for the latest posted Los Angeles County heat alert and then consider these resources. Read More The Heat is Here!

Affordable Housing Act Qualifies for the November Ballot

When Sacramento legislators won’t represent our interests, then we who rent have to do it ourselves. That’s the message sent by 447,834 voters to landlords. We signed a petition to put the Affordable Housing Act on the ballot in November. The measure would return to localities the authority to establish tenant protections that fit with local needs. That capacity was stripped by the state’s Costa-Hawkins Rental Housing Act. Now Costa Hawkins repeal is headed to the November ballot! Read More Affordable Housing Act Qualifies for the November Ballot

Has the City Been Incorrectly Calculating Chapter 5 Increases?

A couple of months ago I got to thinking about how Beverly Hills calculates allowable annual rent increases. A formula tied to consumer prices long kept increases very low for Chapter 5 tenants. Indeed in a period of low inflation Chapter 5 increases long averaged about 1% annually. Then it jumped to an average of 1.7% this year in a reviving economy. But now the annual rent increase effective in August nearly doubles to 3.3%. What’s going on? Read More Has the City Been Incorrectly Calculating Chapter 5 Increases?

Relocation Fees Rise by 4.1%

City of Beverly Hills announced that relocation fees will incrementally rise come July according to the percentage change in consumer prices for our region: a 4.1% increase. While this small bump-up is intended to allow the relocation fees to keep pace with rising rents, tenants will actually lose ground because even with the hike the fees lose ground relative to the cost of rental housing. Read More Relocation Fees Rise by 4.1%

Is the Rent Too Damned High? Putting the 4.1% Increase in Perspective

To a tenant accustomed to the 3% cap on annual allowed rent increases, the city’s announcement that the allowance has risen to 4.1% was a surprise both for the change and for the magnitude of the jump. As I explained in a recent post, the bump-up may have been predictable given the change in consumer prices lately even if the increment was larger-than-expected. The culprit? Rising rents! Read More Is the Rent Too Damned High? Putting the 4.1% Increase in Perspective

Allowed Rent Increase for Chapter 6 Rises to 4.1%

Today City of Beverly Hills announced a bump-up in the allowed annual rent increase for Chapter 6 tenants. Effective June 12th the cap was raised from 3% to 4.1% – a one-third larger allowed increase. While that may come as a surprise to some, the Municipal Code allows the allowed annual rent increase to rise with the percentage change in the Consumer Price Index (CPI-U) for the Los Angeles-Long-Beach-Anaheim region. As calculated by the Bureau of Labor Statistics that was 4.1% hence the rise in the allowed rent increase from 3% to 4.1%. Read More Allowed Rent Increase for Chapter 6 Rises to 4.1%

No-Just-Cause Eviction: A Primer

I regularly speak with tenants who are not aware that the landlord can end a month-to-month tenancy for any reason or no reason at all. If no local ordinance prohibits it, and Beverly Hills has no such prohibition, the landlord’s good will is all that stands between the home we’ve made and the stomach-churning search for post-eviction replacement housing. Have you thought about what happens next after receiving such a notice? Here’s a primer on no-just-cause eviction: what it is, what to expect, and what you can do. Read More No-Just-Cause Eviction: A Primer

The Importance of Establishing Expectations

City Council kicked-off the extended rent stabilization reform discussion in January of 2017 without much discussion about goals and objectives. Councilmembers heard plenty from tenants about rising rents, but they left unresolved the question of who should benefit from rent control. They heard about capricious landlords and predatory practices but they recommended no new tenant protections to keep renters housed. While no specific objective was identified for rent stabilization, the Rent Stabilization Program has found one – and it needs revision. Read More The Importance of Establishing Expectations

Market Repositioning: A Primer

How to Reposition and apartment complexLandlords are making significant improvements to their properties in an effort to enhance curb appeal in today’s hot real estate market. Paint and landscaping is one way. Remodeling vacant units to fetch higher rents is another. Maximizing fees for late payment, pets, and other ancillary revenue streams yet a third way. But key to what the real estate industry dispassionately calls ‘market repositioning’ is getting rid of longtime tenants.

Read More Market Repositioning: A Primer

Repair-and-Deduct at Your Peril!

Tenants are allowed to deduct from the rent the cost of a repair when the landlord won’t make it. Colloquially it’s known as ‘repair-and-deduct’ and the logic is straightforward: the rental agreement says you pay your rent and the landlord maintains the premises. But like so many tenant protections, this one too comes with practical limits. Understand that failing to follow the law carefully may put a tenant in court fighting an unlawful detainer. That’s why I advise tenants against withholding any part of the rent. If you feel that you must deduct, then at least read more before you do. Read More Repair-and-Deduct at Your Peril!

AAGLA Sees Ghosts in the Affordable Housing Act Initiative

Affordable Housing Act initiative homepageLast year Beverly Hills landlords saw their allowed annual rent increase drop from 10% to 3% and the city imposed a relocation fee for any involuntarily-terminated tenancy. They lost the battle for the rental unit registry and the approximately one-in-ten who had long avoided paying business taxes finally had to obtain the required business license. If 2017 was a tough year then 2018 looks only worse if the Affordable Housing Act ballot initiative wins the approval of voters in November. Read More AAGLA Sees Ghosts in the Affordable Housing Act Initiative

On the November Ballot: Costa Hawkins Repeal?

California voters may have an opportunity come November to overturn the state’s Costa Hawkins law, which prevents localities like Beverly Hills from extending protections to all who rent housing. This “gift to landlords” (in their words) has handcuffed local officials for decades. With the Affordable Housing Act initiative about to qualify for the ballot, the stakes are high and landlords are apoplectic at the prospect. Let’s take a look at the law’s affect on rental housing in Beverly Hills and the proposed initiative’s objectives. Read More On the November Ballot: Costa Hawkins Repeal?

Director of Rent Stabilization Program is Appointed

Helen Morales hiring announcementCity of Beverly Hills has hired a director for our Rent Stabilization Program. Helen Morales comes to Beverly Hills after a 10-year career as a manager, hearing officer and housing investigator at the City of Los Angeles Housing and Community Investment Department. Her first day was May 14th and it comes after an eight month search. Yet no press release or website announcement mentioned it. Here is what we know about our new Deputy Director for Rent Stabilization from her LinkedIn profile and the press release that was belatedly posted by the city this week. Read More Director of Rent Stabilization Program is Appointed

Unpaid Relocation Fees: Justice Delayed Is Justice Denied

“Justice delayed is justice denied.” We all know this well-worn aphorism. It means that a remedy for an injustice should be delivered in a timely manner or otherwise it stands as no remedy at all. (Read more about the history of the phrase and a follow-up deeper-dive.) The aphorism comes to mind whenever I hear that the required relocation fee is unpaid at the time the tenant vacates the apartment. The fee is intended to assist a displaced tenant with securing replacement housing and starting again in a new apartment. But when payment is late, perhaps months late, the law, and our city, has failed that tenant. That’s why I say a relocation delayed is truly an instance where justice is denied. Read More Unpaid Relocation Fees: Justice Delayed Is Justice Denied

Missing from Community Education Workshops: Tenant Empowerment

City of Beverly Hills recently hosted Community Education Workshops for landlords and tenants (read my summary). The purpose of this ’community education workshop’ was stated plainly on the flyer: to provide an “overview” of the rent stabilization program. On the workshop agenda was a recap of recent changes to the rent stabilization ordinance and a heads-up about the next steps in the policy process. There was also a follow-up Q&A. However what was not on the agenda was tenant empowerment. That was a reminder: when residents who rent find ourselves on the losing side of the tenant-landlord power imbalance, we must remember that no cavalry from City Hall comes to our rescue. Read More Missing from Community Education Workshops: Tenant Empowerment

Community Education Workshops: The Good, Bad and Ugly

Community Education Workshop 2018City of Beverly Hills recently convened two ‘community education workshops’ where staff provided both tenants and landlords with a presentation about rent stabilization. Susan Healy Keene, Director of the Community Development Department, provided an overview of the process and then handed it over to Community Preservation Manager Nestor Otazu.[1] He walked though the relatively recent changes to the rent stabilization ordinances and highlighted the key aspects of state law that apply to those who rent housing (and those who provide it). Here is my takeaway. Read More Community Education Workshops: The Good, Bad and Ugly

AAGLA’s Executive Director Has Some Thoughts on Rent Control

Resident ‘landlord crusader’ Dan Yukelson recently shared his thoughts about rent stabilization with the Weekly and he’s not happy! This former Planning commissioner (and current executive director of the Apartment Association of Greater Los Angeles) capped his career in corporate finance with the purchase of a fourplex in Beverly Hills. That looked like a good investment until City Council amended the rent stabilization law. He says it crimps his cash flow and now he’s got buyer’s remorse. But Mr. Yukelson is no naïve investor: rental housing in Beverly Hills will always be the best place to park his investment dollar! Read More AAGLA’s Executive Director Has Some Thoughts on Rent Control

Know Your Rights: State Law Prohibits Discrimination in Housing

Landlords largely get free rein in Beverly Hills. The city mandates so few protections for those who rent, in fact, that only residents in 3% of households – those that fall under the city’s earlier Chapter 5 rent stabilization code – can feel like City Hall has their back. Most tenants’ protections derive largely from state law which means a trip to court on our own dime for an uncertain outcome. Discrimination in housing is different: state and federal law provides for significant penalties against any landlord who discriminates, and that protection is backstopped in the courts by state and federal officials and non-governmental organizations that file suit on behalf of tenants. Read More Know Your Rights: State Law Prohibits Discrimination in Housing

The Tenant’s Challenge: Due Diligence on the Landlord

Tenant and landlord representatives sat down for a series of facilitated dialogues last summer to talk about a rent stabilization policy changes and we agreed that bad actors cause the most grief: predatory landlords who take advantage of tenants and problem tenants who are a thorn to landlord and neighbors alike. While landlords have the means to flag potentially-problematic tenants, though, a prospective tenant cannot do the due diligence: there exists no means to reliably vet a landlord before signing a lease. That puts the lie to caveat emptor: ‘Let the buyer beware.’ Read More The Tenant’s Challenge: Due Diligence on the Landlord