No Fault Eviction in Los Angeles - Rent Stabilization Ordinance

[Max Gallagher]

Hi All -

A friend and I just opened escrow on a 3 unit (3br - $1500 in rent, 2br - $1350 in rent, & 1br - $850 in rent) property in Los Angeles, CA. The property is rent controlled and all units are currently occupied. Our goal is to move into the 3br unit (most space, largest deviance from market rent: ~$2100) but the current tenants have been there over a year. All interactions with them so far have led us to believe they will not voluntarily leave without money offered or legal action.

I’m looking for negotiating tips or practical applications of the new Rent Stabilization Ordanance (RSO). For example, the law requires a payment of $15,900 to the tenants for no-fault relocation (qualified tenants due to minors; we qualify for mom and pop relocation amounts), but has anyone had success paying less? We must also live at the property for two years and sign declarations with the city immediately, after one year, and after two years stating that we have and still are living in the unit. What would happen if we no longer want to live in this unit after a half or full year?

Resources (sample):

https://hcidla.lacity.org/Relocation-Assistance

https://hcidla.lacity.org/sites/default/files/documents/declaration_of_intent_to_evict_for_landlord_occupancy.pdf

Questions:

• -Does anyone have experience negotiating with tenants (cash for keys), without hiring an attorney?

• -Does anyone have experience with no fault evictions in rent controlled areas (new RSO) using an attorney?
• -Any general thoughts or specific tips that may help us in this scenario?

I appreciate any and all feedback. Thank you!