RSO Rental Rate Restrictions on Renovated Owner/Occupant Unit

[Franklin Marquette]

Hello everyone,

I am buying an RSO-controlled property in Los Feliz and will be performing a no-fault eviction so I can move in as my primary residence.

The property is currently a duplex, with a 2 bed 1 bath on the top and a 5 bed 3 bath on the bottom. I will be moving into the 5 bed 3 bath because the tenant has been there half as long as the upstairs tenant (therefore that is the unit I am legally directed to move into vs the more tenured upstairs tenant).

I do not need the space of a 5 bed 3 bath apartment so am planning on renovating the entire space and turning it into x2 2 bed 2 bath apartments while I am living there. I plan to live in one of the new units long term but will rent out the second new 2 bed 2 bath unit at the market rental rate. The upstairs tenant is amazing so I would like to leave them upstairs for as long as they want. Effectively turning a duplex into a triplex.

Does anyone know if there is any issue with doing this? I haven't been able to get a straight answer from LA's RSO.

Thank you!

Franklin