What is the Rent Escrow Account Program (REAP)?
The Rent Escrow Account Program (REAP) is a system that helps fix problems in Los Angeles rental homes. It ensures homes are safe and comfortable, and helps keep housing affordable. If a landlord isn't fixing habitability or safety problems in a rental unit, the program allows tenants to pay less rent. The tenants can either pay this reduced rent to the landlord, or put it into a special account that is controlled by the Department. The money in the account can be used to fix the various problems, pay for utilities, or help tenants relocate to a new unit if necessary.
Asbury apartments in Los Angeles going through the REAP process due to delayed repairs.
What are some laws supporting REAP?
LAMC Section 162.00 and RAC Regulations Section 1200.00 are integral parts of Los Angeles's housing regulations. LAMC Section 162.00 is a part of the Los Angeles Municipal Code which outlines the conditions under which a property can be placed into the program, and deals with persistent safety and habitability issues in rental property standards. Additionally, RAC Regulations Section 1200.00 talks about the rules set by the Rent Adjustment Commission (RAC) in LA. It contains guidelines for landlords and tenants regarding rental properties, including maintenance standards, rent adjustments, and the responsibilities of landlords and tenants. Seeking legal advice is a crucial task for tenants when it come to REAP, since legal professionals are able to help tenants identify what they can be eligible for.
What are some steps for eligibility regarding REAP?
The inspection of the unit occurs once the tenant has filed a report and the unit has been investigated by LAHD. Once it is finalized that a property is entering REAP, the Department not only records a notice on the property title but also sets up an escrow account for reduced rent payments. Upon final placement of the unit in REAP, tenants will get a mail notice stating how much the rent is reduced and how to deposit this amount into the escrow account. They might also be visited by a REAP outreach worker from the Department, who will guide them on paying the reduced rent and keep them informed about their rights and responsibilities under the program. The Health Department starts the process of taking a property out of REAP after checking that all problems have been fixed, but if there are still issues, tenants can file a complaint and the Department will look into it. The removal needs to be approved by the City Council, and, if approved, the department will notify the landlord that rents will be restored to the original amount and the escrow account will close.
Los Angeles and Asbury Apartments
The Asbury Apartment complex is, a 13-story rent-controlled complex in MacArthur Park built in 1925. The complex has been in severe decline due to structural and maintenance issues, leading tenants to seek assistance from the Housing and Community Investment Department of Los Angeles (HCID). In early 2020, HCID found seven violations in the building, including structural hazards, unsanitary conditions, and plumbing problems. COVID-19 delayed a follow-up inspection until October, with tenants living in these conditions for over ten months. Details about the HCID's findings are limited, but it has been confirmed that several violations remain. A General Manager's hearing could place Asbury Apartments into REAP, which could force the property owners to make the necessary repairs or have tenants' rent payments reduced and put into an escrow account. Tenants claim the property issues have not been not properly addressed and believe the building will be better repaired under REAP. However, the owners can appeal the city’s decision, potentially prolonging the resolution of the situation. This is an example of how Los Angeles is utilizing the program to protect the rights of tenants who are subjected to potential habitability or safety hazards.
Important REAP news
The program has recently updated its process by adding a landlord-appealing process after the property has been placed into REAP, which means landlords do have the opportunity to appeal the decision. The appeal process in Los Angeles involves a hearing before the General Manager of the Los Angeles Housing and Community Investment Department (HCIDLA). The General Manager will consider the appeal and decide if the property should remain in the REAP program or not.
It's worth noting that the process can be prolonged if the landlord decides to contest the decision or is slow to make necessary repairs, leaving tenants to continue living in substandard conditions. This is why the REAP program is seen as a crucial protection for tenants.