By Paul Shigley : cp-dr – excerpt
13 May 2009, Los Angeles County – A City of Los Angeles ordinance that subjects replacement rental units to the city’s rent control scheme has been upheld by the Second District Court of Appeal.
The city’s law provides that if a landlord demolishes a residential property that is subject to the city’s rent stabilization ordinance, and then builds new residential rental units on the same property within five years, the new units are also subject to the rent stabilization ordinance. The Apartment Association of Los Angeles County challenged the law as prohibited by the Costa-Hawkins Act, which exempts newly constructed units from local rent control measures. The court, however, disagreed with the association’s reading of state law…
At issue in the litigation was interpretations of the Ellis Act and the Costa-Hawkins Act (Civil Code § 1954.50 et seq.). In general, the Ellis Act (Government Code § 7060 et seq.) permits the owner of a rental property to evict the tenants and go out of business. However, the Ellis Act contains recontrol provisions intended to prohibit bogus evictions. If a landlord begins renting a property again after evicting tenants, local rent control measures still apply. In addition, local governments may impose rent control on replacement units under the Ellis Act…
Rather, the court ruled, the statutes “should be interpreted to work together.”
Apartment Association of Los Angeles County, Inc. v. City of Los Angeles, No. B204334, 09 C.D.O.S. 4583, 2009 DJDAR 5455. Filed April 17, 2009.
For the Apartment Association: Trevor A. Grimm, California Apartment Law Information Foundation, (213) 380-0303.
For the city: Gerald Sato, city attorney’s office, (213) 485-5417…(more)
Essentially, Costa-Hawkins exempted rental units erected after the law passed from being rent controlled. Costa-Hawkins also allowed landlords to raise rents on a unit if and when an apartment becomes vacant.