GUEST WORDS-In the City of Los Angeles, apartment buildings built before October 1, 1978 are under rent-control. All across Los Angeles there are people living in one-bedroom apartments paying around four hundred dollars a month in rent when, in reality, the fair market value of that apartment is twelve hundred dollars a month or more. As of 2016, the citywide average fair market value rent for a one-bedroom is $1,950.
Around the year 2000, the Los Angeles Housing Department decided that landlords are a great source of revenue for the City. All of the sudden, landlords were under attack by the LAHD. Housing inspectors would visit apartment buildings and cite landlords for the most minor code violations such as little bits of peeling paint. And the city started collecting lots of money from landlords.
If the city is limiting a landlord’s cash flow through rent-control, it is very hard for that landlord to pay the mortgage, the real estate taxes, the utilities and then, after all those expenses, properly maintain the building. But the housing department was not concerned about what was fair because they started to prosecute landlords; many went to jail for not spending money they didn’t have and were even held back from collecting.
As the years went on, it became common knowledge among landlords that one could go to jail and lose one’s property if the LAHD came after them via the City Attorney’s Office. Once landlords saw the writing on the wall, they started selling their properties in large numbers. These older properties were gobbled up by developers who in turn evicted the tenants, tore down these older buildings and built condos that would generate a higher cash flow. After selling their properties here, landlords began investing their money in cities that were business friendly. Since 2000, more than 200,000 affordable housing apartments (older buildings) have been torn down and replaced by expensive units.
The tragedy here is the many of LA’s working poor, the elderly on fixed income, the disabled and families on public assistance were losing their low-rent apartments. Once a person loses his or her four hundred dollar a month apartment, and that person cannot afford to pay at least double or triple that rent he or she will become homeless.
So now the City of Los Angeles wants to raise $100 million to fix a problem caused by the LAHD. If you own any type of business or if you own real estate, there are people in City Hall planning to create a new tax or fee that will take more of your money away from you. You need to be aware of what they are discussing in the Budget Committee and the Housing Committee. If they start taking your money to clean up their mess, you must remember them and vote them out of office in the next election.
If you want to receive updates on this matter, so you can call LA City Councilmembers directly and tell them your opinions. Also, for more information check with The Fair Housing Coalition
(Bill Hooey is President of The Fair Housing Coalition in Los Angeles. His email is: [email protected].) Photo: KABC News. Edited for CityWatch by Linda Abrams.