Unsuccessful Recount and Unlawful Cheval Blanc Flyers: Who is the Common Thread?

The Los Angeles County Registrar-Recorder certified the results of the May 23 referendum on Cheval Blanc and it failed to pass by a margin of only 80 votes. Yet LVMH didn’t spend more than $3 million on the YES on Measures B & C campaign — more than $1,000 per vote! — to concede defeat to local yokels. So the Hail Mary play was to demand a recount. Now that has wrapped and the voters have the last word: Measure B & C fail and the proposed Cheval Blanc goes down to defeat.

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Consumer Prices in May Show Annual Decline of 3.2%

Bureau of Labor Statistics has released the latest consumer prices data and the good news is that inflation has declined considerably from last year’s historic peak of 8.5%. The May-to-May price data for our region show an annual percentage change of only 3.2% and that suggests a more moderate maximum allowable annual rent increase for Beverly Hills rent-stabilized households starting in July. That is unless our councilmembers decide to allow landlords significantly greater than 3.2% so they can recoup rent increases delayed by the moratorium.

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Community Development Director Decamps for (Literal) Greener Pastures

Musical chairs continues in city hall with the surprise announcement that our Community Development director, Timothea Tway, will soon leave the city after a decade with the city. Tway came on board as a planner but quickly climbed the ladder culminating with a recent promotion to department director in January. While that’s a lot to walk away from, the greener pastures of San Luis Obispo no doubt promises a better quality-of-life. Still the shake-up begs many questions. Foremost among them: What will her departure mean for rent stabilization?

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City Appoints Nestor Otazu New Deputy Director for Rent Stabilization

City of Beverly Hills has appointed Nestor Otazu, longtime manager of the Community Preservation division, as the new deputy director of the rent stabilization division. Otazu fills the vacancy that opened after the city dispatched the former deputy director in February. For Otazu this represents a step up in the city’s organization chart as he moves from management to senior management. What does this appointment mean for rent stabilization and the tenants who rely on it?

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LVMH Conditionally Concedes, “Will Respect the Outcome”

The county registrar today released the second round of election results for the Measures B & C referendum and the opponents winning razor-thin margin of 60 votes has nearly doubled to a still-thin 123 votes. The problem for LVMH is that the registrar says there are only 135 ballots yet to be processed. The next update is on Tuesday June 2nd and the results will be certified on June 6th. The Yes on Measures B & C in a statement have conceded defeat. But is this really the end for Cheval Blanc?

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Moratorium Rent Repayment Deadlines are Approaching!

he bill for rent that was delayed using a city, county or state moratorium is soon coming due. Rent that was delayed using the Beverly Hills moratorium must be repaid by June 1st as the 1-year forbearance period comes to an end. So all rent arrears incurred between March 15, 2020 and May 31, 2022 must be repaid in full within the next week. Also the bill for rent delayed using the Los Angeles County moratorium rent repayment is coming soon. And Beverly Hills rent-stabilized households can expect to see a rent increase on July 1st or soon after. Talk about a tough summer!

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Now You See It, Now You Don’t: BH Landlord Names Disappear

We long relied on the city’s property information portal called CitySmart when researching Beverly Hills landlords. We use a variety of sources and methods to hold landlords accountable, of course, but the CitySmart portal provided one essential piece of information not easily available: the name of the landlord. Now in a major step backward for transparency the city has summarily removed from that portal all of the landlord names. What’s behind this bit of “now you see it, now you don’t” sleight-of-hand?

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Los Angeles County Moratorium Expired March 31, 2023

The Los Angeles Board of Supervisors allowed the county moratorium to expire on March 31st thereby removing the last protection from eviction for nonpayment for Beverly Hills tenants. Starting April 1, 2023 tenants throughout the county must pay full rent as there is no longer any means to delay the payment of rent and still be protected from eviction. In the next 30 to 60 days we can expect many renting households to enter the eviction process which begins with a 3-day notice to pay-or-quit and can end with a court-ordered eviction. Here’s what to expect.

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Landlord Registration of Rental Units is Badly Lagging

City of Beverly Hills every year requires each owner of a multifamily property to register his rental units with the city’s rental unit registry. The registry identifies the property owner and keeps track of the lawful rent and much more. It is the backbone of our rent stabilization program because it helps the city hold landlords to account for unlawful rent increases and other malfeasance. Landlords strongly opposed it and even filed two lawsuits to stop it without success. Now some landlords simply resist registration. How many failed to comply?

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Eviction for Major Remodeling: Finally Off the Books After 43 Years

Beverly Hills City Council in January eliminated the landlord’s ability to evict a rent-stabilized household for the purpose of major remodeling. The provision was complicated and infrequently used but nevertheless represented a threat to tenants in an overheated rental housing market. The problem was the definition of ‘major remodeling’ in the rent stabilization ordinance: an expenditure as little as $7,000 on interior upgrades could qualify and result in a no-fault eviction. Not only is it good to have it off the books — but merely taking that step represents city council’s first effort to amend the rent stabilization ordinance in FIVE years.

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Aggressive Landlords Pursue Rent Arrears Despite Moratorium Declaration

The county moratorium is likely entering its final month and is expected to expire on March 31, 2023. Full rent will likely be due on April 1st and repayment of rent arrears is due one year later on March 31, 2024. However tenants who have delayed the payment of some or all of the monthly rent with a moratorium declaration may still find themselves with a 3-day notice to pay-or-quit. And if not resolved the step is a court date. We hear from some tenants who used the moratorium that the landlord is using court as a threat in order to collect rent debt prematurely or coerce the tenant to voluntarily vacate.

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