Mandated Relocation Payments Overturned

CalRHA is pleased to share that our local affiliate, the Apartment Association of Greater Los Angeles (AAGLA), has secured a decisive victory on behalf of rental housing providers in a legal challenging involving two local ordinances.

Specifically, the California Court of Appeals, District 2 invalidated a City of Los Angeles ordinance that required rental housing providers to pay substantial relocation fees in certain circumstances, while upholding a second ordinance prohibiting owners from initiating eviction proceedings until the amount of unpaid rent reached one full month of fair market rent.

The facts of the case follows. AAGLA filed suit against the City of Los Angeles challenging two ordinances that had been in effect since March 27, 2023:

Relocation Assistance Ordinance (No. 187764): This ordinance forced rental housing providers to pay substantial relocation fees whenever they implemented a lawful rent increase above a specified amount on units exempt from rent stabilization even if the tenant chose to voluntarily vacate. The California Court of Appeals, District 2 ruled in AAGLA's favor, finding the ordinance was preempted by the Costa-Hawkins Rental Housing Act, which specifically authorizes providers to raise rents on non-rent-controlled units to fair market value. This ordinance is now overturned.

Threshold Ordinance (No. 187763): AAGLA also challenged the ordinance requiring that unpaid rent reach one full month's HUD fair market rent before an owner could initiate eviction proceedings. The Court upheld this ordinance, likening it to "just cause" eviction regulations. AAGLA is evaluating options for further appeal.