City of Los Angeles Housing & Community Investment Department – Relocation Assistance Escrow Accounts.
Are you a landlord who is facing the possibility of having to evict a tenant? It’s not a pleasant situation, but sometimes it’s necessary. If you’re in Los Angeles, it’s important to know that under the Rent Stabilization Ordinance, you may be required to pay relocation assistance to your tenant if you are evicting them for certain reasons. These payments can depend on various factors, such as the length of tenancy and the tenant’s income.
At Concierge Escrow Service Inc, we understand that navigating the legal requirements around eviction and relocation assistance can be complicated and time-consuming. That’s why we offer an escrow account service to help landlords like you ensure that these funds are handled securely and disbursed to the tenant in a timely manner.
By choosing our escrow service, you can rest assured that your tenant’s relocation assistance payments will be held in a safe and secure account until they are needed. This gives you peace of mind, knowing that the funds are being used for their intended purpose, while also providing your tenant with the assurance that the money will be there when they need it.
Don’t let the stress of eviction and relocation assistance weigh on you. Contact Concierge Escrow Service Inc today to learn more about how our escrow account service can help you navigate this process with ease.
As a landlord, there may come a time when it becomes necessary to evict a tenant. While it is always best to avoid eviction whenever possible, there are several reasons why a landlord may have to terminate a tenancy. Under the Rent Stabilization Ordinance (RSO), landlords are only required to pay monetary relocation assistance payments to tenants being evicted through no fault of their own. There are seven no-fault reasons under the RSO in which a landlord can legally evict a tenant. In these cases, landlords must file a landlord declaration application with the Los Angeles Housing Department (LAHD) before issuing a notice to move-out.
The following eviction reasons require the payment of relocation assistance:
- The landlord evicts for their own occupancy, a resident manager, or for the landlord’s spouse, children, grandchildren, parents, or grandparents.
- Any tenant affected by Primary Renovation Work shall have the option to voluntarily terminate the tenancy in exchange for permanent relocation assistance as set forth in a Tenant Habitability Plan accepted by the LAHD.
- The eviction is due to condominium conversion, demolition, or the property is going to be permanently removed from the rental housing market (Ellis Act).
- The landlord evicts to comply with a governmental agency’s Order to Vacate.
- The Secretary of the U.S. Department of Housing and Urban Development is both the owner and plaintiff and seeks to recover possession in order to vacate the property prior to the sale.
- The rental unit is in a Residential Hotel, and the landlord is going to convert or demolish the unit(s).
- The Landlord seeks in good faith to recover possession of the rental unit to convert the property to an affordable housing accommodation.
The determination of relocation assistance depends on whether the tenant is an eligible or qualified tenant, the length of tenancy, and the tenant’s income. A qualified tenant is any tenant who, on the date of service of the written notice of termination, is 62 years of age or older, handicapped, as defined in Section 50072 of the California Health and Safety Code, or disabled, as defined in Title 42 of the United States Code, Section 423, or who has one or more minor dependent children. Unless a tenant is a qualified tenant, the tenant is an eligible tenant and is entitled to receive a relocation assistance amount that depends on the length of time in the unit and income.
To ensure that tenants receive the relocation assistance they are entitled to, landlords must pay the funds within 15 days of service of the written notice to terminate tenancy (move-out). Landlords may elect to pay the relocation assistance through an escrow account rather than provide the full relocation amount on the 15th day. This is because the use of an escrow account is preferred in disbursing the relocation assistance funds. It provides added protection to both the landlord and tenant by ensuring that the funds are held in a secure account until they are needed. This way, tenants can have peace of mind knowing that the money is there when they need it, while landlords can be sure that the funds are being used for their intended purpose.
In conclusion, eviction is never a desirable situation for either landlords or tenants. However, if it becomes necessary, landlords must follow the proper legal procedures and provide the required relocation assistance to eligible tenants. The use of an escrow account is recommended to ensure the safe and timely disbursement of these funds to the tenant.
Get in touch with our Team today to get the process started. Were available at 949-954-6571 or fill out the form below.
For more information; please refer to the following page for updated rules, regulations and guidelines. The above information is for reference only, please speak with your legal counsel for legal advice. Concierge Escrow Service Inc is not a attorney nor legal firm. Reference to in-depth information about the subject can be found here: https://housing.lacity.org/rental-property-owners/relocation-assistance-information along with any necessary forms you may need to complete the process.