Key LA Rent Control Measures Invalid, Lawsuit Says

A property owners association has filed a legal challenge to some of the renter protections the Los Angeles City Council approved at the beginning of the year, claiming key parts of the legislation conflict with state law and should be repealed.

Apartment Association of Greater Los Angeles filed a complaint March 3 in Los Angeles Superior Court. It’s the group’s latest challenge against the city’s recent initiatives backed by the City Council’s progressive wing.

One of these new rules is the City Council’s ordinance on just cause for eviction. The new rule makes it more difficult for landlords to evict tenants. Property owners only can initiate an eviction, or an unlawful detainer, when the amount of money due exceeds one month of fair market rent in the Los Angeles area, according to the new law.

AAGLA’s complaint says that this rule conflicts with state law. Cheryl Turner, an attorney and president of AAGLA’s board, said the city threshold would be a major financial burden for landlords.

“Now owners may have to wait months or even years, at which point the past due rent will likely never be collectible and renters may now stay housed in violation of their lease agreement without recourse. The city’s ordinance has clearly created a scenario where renters, not the property owners, can effectively establish the amount of rent they wish to pay,” Turner said in a prepared statement.

AAGLA’s complaint also took issue with relocation assistance for renters they evict. The complaint argues that the fees for relocation assistance would prohibit landlords from raising rents.

These rules also break the 1995 Costa-Hawkins Act, which puts limits on municipal rent control ordinances for residential housing categories, such as single-family homes, condominiums and newly constructed apartments, the complaint argues.

A representative for the L.A. City Attorney’s Office did not answer a request for comment.

Since the pandemic, AAGLA has mounted legal challenges to the efforts of the City Council’s and L.A. County to change rent laws. In March 2022, AAGLA filed a joint lawsuit with Apartment Owners Association of California against Los Angeles County seeking relief against enforcement of the county’s residential eviction moratorium. A preliminary injunction was granted.

In 2020, AAGLA filed a lawsuit against the city’s moratorium on evictions and rent increases. An AAGLA statement said that both matters are pending.

In December, AAGLA served as a plaintiff to file charges against L.A.’s transfer tax. It imposes a 4 percent tax on property sales between $5 million and $10 million, with the tax rising to 5.5 percent on sales above $10 million.