Page 45 - AAGLA-JAN 2022

10% of the total annual calls were related to habitability complaints and an even smaller percentage of those complaints remain outstanding.
The City’s own data clearly illustrates that there is no issue to warrant further discussion let alone to establish policy changes and/or the creation of an entirely new extremely costly proactive inspection program. According to the fee study conducted in 2018, the cost of such a program was appraised at $1,519,490 and would result in an astronomical 350% increase to the City’s Rent Stabilization Program’s annual per unit fee. Prior to meeting, the Association submitted an opposition letter urging the Commission to maintain the existing process and protocols without modification.
During the meeting, some Commissioners expressed the opinion that based on the data, there was no need to take any action at this time to change standards or the related process. Concern was also raised about the exorbitant cost of instituting a proactive inspection program and the enormous 350% increase in fees that would likely be borne by the City’s rental housing providers. In the end, the Commission decided to continue deliberations on these matters into the new year. The Commission’s next meeting is scheduled of January 5, 2022.
Beverly Hills’ Rent Stabilization Commission Agrees Upon Modifications to Relocation Fees and Formula Changes
At the December 1st Beverly Hills Rent Stabilization Commission meeting, the Commission discussed and agreed upon recommendations regarding relocation fees for the City Council’s consideration. These recommendations include the following proposed modifications:
• Adjust relocation fees based on the formula of three times the median rent for the same size unit, 0,1,2,3, and 4 bedrooms, based on the City’s rent registry data each July 1st commencing on July 1, 2022, plus an additional $1,000 for moving expenses plus an additional $2,000 for households with qualifying seniors, disabled, or with a minor child. This
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proposed formula for calculating relocation fees, expands upon the current bedroom size categories to include three- and four-bedroom sizes, while maintaining the current $2,000 enhanced relocation assistance for qualified renters.
Define small “Mom and Pop” owner as owners of 4 or fewer residential units plus a single-family home within the City of Beverly Hills not including (1) a real estate investment trust, as defined in Section 856 of the Internal Revenue Code; (ii) a corporation’ (iii) a limited liability company in which at least one member is, or is controlled by, a corporation; or (iv) a partnership in which at least one partner is, or is controlled by, a corporation.
Provides a relocation fee reduction of 25% to small “Mom and Pop” owners as defined above, where the no-fault tenancy termination is based on owner occupancy and where the renter(s) has resided in the unit for less than ten years. Where the renter(s) has resided in the unit for 10 years or more, the small “Mom and Pop” owner would be provided a 15% relocation fee reduction.
Small “Mom and Pop” owners seeking the above relocation fee reductions would be required to submit a declaration under penalty of perjury that the owner meets the definitional requirements.
The City’s current Rent Stabilization Ordinance (RSO) provisions set forth the required relocation fee structure based on unit size of bachelor or single, one bedroom, and two or more bedrooms with the base fee ranging from $6,988.87 to $13,986.75. Households with renters that are seniors, disabled or with a minor child receive an additional amount of $2,000. On July 1st of each year, the fees are adjusted based on the Consumer Price Index.
It is anticipated that a resolution setting forth all the above recommendations will be brought to the Commission at the January 5, 2022 Commission meeting, the resolution will then be advanced to the City Council for their
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