Why Do I Have To Pay Relocation Assistance In Los Angeles Under LARSO?

If I’m a Los Angeles landlord, why do I have to pay relocation assistance to tenants?

The simple answer is that it’s the law in the City of Los Angeles that a Landlord must pay relocation assistance to a tenant if the landlord wants to evict a tenant for no cause.

This law is also soon to come to the County of Los Angeles and the many cities within the geographical boundaries of the County of Los Angeles. The current push for rent control in the State of California also comes with a push for relocation assistance to qualified tenants.

The model for relocation assistance can be found in the City of Los Angeles Rent Control Ordinance.  These evictions are not for any specific cause such as non-payment of rent, breach of a written covenant in the lease, or nuisance.

The following not for cause evictions in the City of Los Angeles under LARSO require the landlord to pay relocation assistance and it is clear that relocation assistance will be coming to other California Cities, Counties and Municipalities considering rent control.

The County of Los Angeles has recently passed its own rental control ordinance that will also include relocation assistance for no fault evictions.

  1. The landlord evicts for the occupancy for her/himself, spouse, grandchildren, children, parents or grandparents, or a resident manager (Los Angeles Municipal Code (LAMC) 151.09.A.8). Landlords must comply with the restrictions and requirements of LAMC Section 151.30.
  2. The landlord seeks in good faith to recover possession of the rental unit to demolish or to remove the rental unit permanently from rental housing use (LAMC 151.09.A.10). These are considered Ellis Act (California Government Code 7060.4) evictions and the landlord must comply with the requirements of LAMC 151.22-151.28.
  3. The unit requires permanent eviction due to a primary renovation in accordance with a Tenant Habitability Plan accepted by the HCIDLA (LAMC 152.05).
  4. The landlord evicts to comply with a governmental agency’s Order to Vacate (LAMC 151.09.A.11). Landlords must file a Landlord Declaration of Intent to Evict prior to giving notice to tenants.
  5. The Secretary of Housing and Urban Development is both the owner and plaintiff and seeks to re-cover possession to vacate the property prior to sale (LAMC 151.09.A.12).
  6. The eviction is due to a Residential Hotel Unit conversion and demolition (LAMC 151.09.A.13).
  7. The landlord seeks to recover possession of the rental unit to convert the subject property to an affordable housing accommodation (LAMC 151.09.A.14).
  8. The landlord demolishes the property or converts the use of the property to condominiums, stock cooperatives, community apartment projects, hotels and commercial uses, regardless of whether the property is subject to the RSO (LAMC 47.06 & 47.07).

The amount of the relocation payment will depend on whether the tenant is an eligible or qualified tenant, the length of the tenancy; and the tenant’s income. The amount paid is per unit and not per tenant.

A qualified tenant is a tenant who on the date of the service of the Notice of Termination if 65 years of age or order, handicapped as that term is defined under California Law, or disabled, or a tenant who has one or more dependent children as determined for Federal Income Tax Purposes.

An eligible tenant is any other tenant subject to a not for cause eviction. The amount to be paid for relocation will depend on the length of tenancy and the income of the tenant.

A third type of tenant who will be paid relocation assistance in Los Angeles under LARSO is the low-income tenant whose income is 80% below the median income adjusted for household size.

The following chart shows the amount of relocation assistance that must be paid to each category of tenant listed above:

Relocation Assistance Amounts

Effective July 1, 2018 through June 30, 2019

  TenantsTenants with Less Than 3 YearsTenants with 3 or More YearsTenTenants Qualifying Under HUD   Low Income LimitsTenants Renting Units in Mom & Pop Properties
Eligible Tenant$8,200$10,750$10,750$7,900
Qualified Tenant$17,300$20,450$20,450$15,900

2018 HUD Low Income Limits for Los Angeles

(Formerly known as 80% of AMI)

Household Size1 Person2 Person3 Person4 Person5 Person6 Person7 Person8 Person
Income Limit$54,250$62,000$69,750$77,500$83,700$89,900$96,100$102,300

A question that is commonly asked is why do I have to pay more relocation assistance for some tenants then I do for others?

The stated purpose of relocation assistance in Los Angeles under LARSO is to force a landlord to pay a benefit to a tenant that is subject to a not for cause eviction in order to help the tenant find new housing – and to punish a landlord for evicting a tenant simply because the landlord wants or needs to evict the tenant.

At Fast Eviction Service, help on any of the issues discussed in this article is simply a click or phone call away. Email intake@fastevict.com or call our office at (800) 686-8686 to discuss your questions for a free evaluation of your case.

Rentals in the City of Los Angeles are governed by the City of Los Angeles Rent Control Ordinance or LARSO which lays out 14 Lawful reasons for evictions. Under certain circumstances for qualified tenants, a landlord is required to pay monetary relocation assistance payments to tenants being evicted through no fault of their own. Read More...

Before a Los Angeles landlord can raise rent on an annual basis under the Los Angeles Rent Stabilization Ordinance or LARSO the landlord must serve at least a 30-day Notice of the change of terms of tenancy. Generally, under the 2018 LARSO published guidelines the landlord may increase the rent by three percent (3%) to eight percent (8%) every 12 months in accordance with the annual rent increase percentage, which is based on the Consumer Price Index (CPI). Read More...

LARSO, and the Systematic Code Enforcement program known as SCEP now includes the Rent Escrow Account Program or REAP that require inspections of rental property. Essentially, it requires all landlords with property covered under the LARSO to open the doors to their properties to the Housing and Community Investment Department of Los Angeles known as HCIDLA, who can inspect the property every four years without a warrant and without any complaints for tenants occupying the rental property. Read More...

This post is filed under: Landlord Tips